As a small business owner, you might believe that only big businesses with large budgets can afford to hire a professional accountant or that hiring one might only bring further, unnecessary expenses to your budget. But that’s not the case – all businesses need to maintain proper financial records and there are accounting firms, like DATC, that can help small businesses with the same concerns.
While as a business owner, you should always stay involved in the money matters of your business as well as learn basic accounting skills, hiring a professional accountant will free you from family financial concerns. This will allow you to spend more time working on your business, interacting with your customers, and making sales.
A professional accountant can save your business money in the following ways:
- Bookkeeping advice: Keeping accurate financial records is essential to the success of any business and a proper bookkeeping system will save you time and money in the long run. A professional accountant can help you to set up a bookkeeping system that will best suit your business’ size and needs. They will also manage your accounts so that you always have an accurate picture of the financial state of your business and be able to plan accordingly.
- Cutting costs: Along with accurate bookkeeping, an accountant is trained to analyse and report on financial information. This regular analysis of where your money is being spent every month will give you insight into how you can cut costs and use your money more effectively. Accountants are trained to carefully consider the collected information and see trends that untrained eyes might not see such as where the majority of your money is spent and which items or transactions bring in the most money and would therefore benefit from more time and energy.
- Tax compliance: A trustworthy accountant will make sure that your business remains compliant when it comes to the law, SARS, and its tax obligations. They will fill out your tax forms correctly and submit them on time. This will prevent you from missing tax deadlines and suffering penalties – incurring unnecessary costs. An accountant can also provide you with valuable advice for maximising your benefits and legally reducing your taxes. And should your business ever be audited, your accountant will ensure that your books are in order and that there are no omissions or issues that would result in further penalties.
- Time is money: Being in charge of a business means you have a number of different responsibilities, including the financial ones. However, when you have professional help in managing your business’ finances, you will find that these tasks are completed more quickly and efficiently than before. This will save you time, leaving you free to focus on other business activities – activities that will ultimately develop your business.
- Business advice: A reputable, experienced accountant can be a great source of knowledge when it comes to growing your business and can help you make informed business decisions. Specifically, they can help you to draw up a business plan and set business goals by assessing the profitability of certain ideas, identifying key customers, and establishing how much capital is required for new ventures.
Along with managing the financial aspects of your business, an accountant can help it to run smoothly and thrive. In this way, spending money on a reputable accountant will actually save you, or even make you, money in the short and long term.