Financial
management is a fundamental part of any business management, small, medium and
large scale and there would be a lot of dire consequences if funds are not
properly managed
Lot
of business owners’ seems to help them by managing their money. A recent report
found that 53% of small business owners don’t use an accountant at all. And
even more shocking, 27% of these respondents simply use the traditional means
to financial management which is the pen and paper for book keeping and finance
tracking. There is no gain saying these businesses are worse off for not having
an accountant, we can’t underestimate the breadth of knowledge and experience
an accountant can provide.
Most
car users do not give service to their cars at home even if they do it will be
a regular service that is required of a responsible car user but for a major
and thorough car service, it has to be taken to those who are professional in
the lane for a smooth and perfect work. Small businesses need just the same
attention from a professional accountant.
Accountants
do more than tax filing. They can take a comprehensive assessment of your
finances and create a forecast throughout the year to keep your business at a
healthy, prosperous state.
It
may feel daunting to let an outsider in on the intimate details of how your
business is run, especially if you’ve had trouble managing your finances in the
past but, partnering with an accountant will actually help you to achieve your
goals and set you up for long-term success.
Below
are but not limited to the reasons it’s important for every business owner have
an accountant for their businesses:
1. Accurate deductions
During
this busy tax season, most business owners are frantically thinking on how to
maximize their deductions. However, by the end of the year it is too late to
make an impact on that.
An
accountant will give his support by easily identifying the potential deductions
throughout the year and assist to advise how to make strategic decisions for
year-end deductions.
Many
business owners forget to track and account for items like depreciation,
out-of-pocket expenses and home office space.
2.
Avoid an audit
The
issue of audit is another compelling reason why every business owners think
they do not need the service of an accountant because they think an accountant is
the perfect one to fix audit issues after they’ve occurred.
The
important thing to remember is that an audit can easily be avoided if you get
the guidance and counsel of an accountant year-round.
There
are many explanations as to why a business is audited; too many mistakes on tax
forms, to being too ‘charitable,’ to excessive write-offs. Think of an
accountant as a long-term partner who is invested in your business and cares to
keep it fiscally sound.
3. Time Consuming
Most
entrepreneurs think that a tight budget means they won’t be able to afford
hiring an accountant. But if you think about how much time and effort you spend
on trying to manage your finances yourself (not to mention the possible errors
you could incur during reporting, and related losses from poor financial
decisions), the benefits certainly outweigh the cost.
As an entrepreneur, your focus should be on running your business. Investing in a professional accountant and engaging him or her as an ongoing tactical business advisor will assist you in maintaining that focus and simultaneously keep you on the road toward your business goals.
4. Make real-time decisions
When
business owners are consulted, their response is majorly on the calculation of
the potential consequences and implications of making a big office purchase or
hiring more employees. Having an accountant as your financial advisor to help
you with budgeting (which is a tool for planning and control) and monitoring
cash flow on a steady basis will allow you to navigate any hurdles that occur
in real time.
Therefore,
there is need for a collaborative approach by business owners with accountant,
allowing for a decision making based on the latest data and also take advantage
of a consultative relationship that will help fostering the business decisions
when there is need to make them.
5. Plan for the future
Lastly,
getting advice on how to plan the future is one of the biggest benefits to both
the business and business owner because, together reports from past months are
pulled and there is a need to re-examine how well the business is doing and
where to make necessary connections in the long run.
Doing
this will help in determining the best time to purchase inventories, and budget
for big-ticket investments so as to stay competitive and viable.
Most
business owners are occupied with the day-to-day operations of running the
business. However, an accountant can take steps backward by reviewing the
organization’s books of account to get an understanding of where the business
is missing out and objectively look at the big picture to find the best way to
support the longevity of the business.
Conclusively,
the life of a business owner can be isolating, especially when left with a pile
of receipts and invoices to plow through at the end of the month or the year.
It doesn’t have to be that way. As the saying goes, “Many hands make light
work,” and partnering with an accountant who has the skill , expertise and
knowhow to guide through the journey that will set the business up for a
competitive advantage and a lasting
success.
By: Adewale Joseph, OKANLAWON
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