When you start a business, the biggest worry you’ll be having is trying to somehow survive those initial years without remaining in the red for too long. While all beginner business might be underperforming at first, they can’t very well underperform forever. Therefore, if you’ve just started out a business, you might be trying to reduce your expenditure as much as possible, while trying to increase your profits as much as possible. It might be the case that you even ditched hiring an accountant – instead deciding to rely on accounting software and some lacklustre do it yourself job.
However, this is a very big mistake which you should not commit. A business accountant is not something you can recreate with your skills and a computer software.
A small business accountant is someone capable of being the financial support and pillar of the entire business. Therefore, when trying to cut expenditure, don’t go about cutting out the accountant post from your ranks. A good accountant has many advantages, some being:
• Advising and consultancy services – this is where accountants shine. Accountants of your business are obviously knowledgeable about the financial situation and together with the knowledge they have on financial matters, you can rest assured that your accountants are more than qualified to act as your private financial planners for your business!
• Keeping records and accounting – this is what the accountants are basically capable of best. If you’re one of those business owners who wish to keep the business records themselves, even so, the accountants can help you. They can show you how to keep accounts and also, create a stable system so that you won’t commit as many mistakes in book-keeping.
• Advices on taxes – accountants can help you to obey existing tax laws (i.e. compliance) and show you methods through which you can reduce the tax burdens on your business (i.e. planning). Therefore, accountants can potentially cut some of your expenditures when it comes to taxing. Visit this link http://www.prosperityaccountants.com.au/ for more details on accountants in West Perth.
• Auditing – auditing is mostly necessary when you require loans from banks and the like. Accountants are helpful in the sense that they can do this job from you, be they simple financial statements or even outright audits. By this, you won’t have to worry over the accuracy of the financial information of your business when some third party goes over it.
Therefore, instead of trying to fulfil the role of the accountant by yourself with only a computer accounting software, it’s better to outright employ an actual accountant in your business. You’ll see that in comparison to his pay, you’ll be cutting down on some expenditures you thought you couldn’t get rid of.