If you’re starting a small business, you’ve probably become an expert at cutting costs. One of the most common areas that entrepreneurs tend to skimp on is accounting. Even if you have an accounting background, handling the accounting duties of your business can be time-consuming and overwhelming.
Here are three key ways an accountant can help your business to thrive.
1. Make the start-up process seamless
When starting your venture, there are many systems you need to put in place to ensure its long-term success and an accountant can help you create a solid foundation. Firstly, they can help you select the ideal business structure (i.e. sole proprietorship, partnership, LLC or corporation). Secondly, an accountant can assist with the financial analysis section of your business plan. Thirdly, they could help you choose the right business accounting software. Fourthly, your accountant will ensure your accounting procedures comply with Australian Government regulations and help you keep track of business expenses.
2. Handle daily operations
When your venture is up and running, you’ll undoubtedly need some help to maintain the accounting system your accountant helped you set up. To make day-to-day operations easier, your accountant can assist you in various ways.
They can ensure independent contractors are correctly classified (i.e. not as employees) and explain financial statements, so you understand exactly where your money is going. An accountant can assist you with company payroll and payment procedures so you are aware of all tax payments you should make throughout the year. Your accountant can handle bookkeeping duties and create annual financial reports, so you understand your company’s position. And, compile and submit all financial documents, taxes and other paperwork to the ATO on your behalf.
3. Guide you through the growth stage
When you’re ready to expand and take your business to the next stage, your accountant can be an invaluable resource. They can help you through the complex growth stage by:
• Helping you identify potential areas for growth. They do so by offering insight on business financing, inventory management, cash flow patterns and pricing
• Advising you on profitable equipment and property leasing and purchasing
• Ensuring your tax returns are completed and filed correctly
• Create financial forecasts for every stage of your business
• Create a business budget which helps you achieve your goals, and;
• Offer resources and advice to help you sell your business.
For even more information on how an accountant can help jumpstart your business, call or email the Propeller Advisory team today.