Great accountants don't just take care of tax-prep and compliance issues. Numbers really do tell a story and today's entrepreneurs are turning to qualified business accountants to help drive success and business profits.
We often think of an accountant as the person that does our tax return or lodges our BAS statements each quarter. But an accountant with true commercial acumen can really make a significant difference in your business and help you.
Strengthening and developing your relationship with your accountant is really an investment in your long term business success.
Here are some examples of how your accountant can add more value to your business.
Power of having accurate figures
Often you rely on figures that you think are up to date, but an experienced accountant will make sure that your accounts are treated properly each and every month so you can make meaningful business decisions.
Businesses, when armed with accurate figures, are able to improve the everyday decisions they make. Inaccuracies in the data can quickly escalate from a minor niggle into something that compromises all the hard work and effort previously invested.
Accurate data can drive efficiency, profitability and growth.
Breaking it down
Once you are working off meaningful data, you can then often breakdown areas of the business to find out what is or isn't working.
For example, you may think overall that your business is profitable but if you had the detail around each product/service and understand the cost of delivering the product/service you can often work out the profitability of where your time should be invested.
Working with an accountant can help you figure it out which of your products or services you want to really push to grow.
This type of knowledge helps you to decide whether to increase the prices on what is losing money or remove it completely and focus more heavily on the very profitable side of the business. This sort of insight is a game changer for a business.
Businesses today rely more then ever on having a monthly reporting pack that looks well beyond the P&L and Balance Sheet. Items such as cashflow, burn rate, budgeting, forecasting and Financial modelling all enable a business owner to make faster and smarter decisions. Having an accountant that has implemented sophisticated reporting for business owners is essential if you want to help your business grow.
Power of the cloud
Cloud-based accounting software now means that your accountant can tap into live accounting information for your business from anywhere, anytime and provide you with prompt and up to date support and strategic advice that really matters.
Cloud-based accounting software develops key insights from data that accountants can serve up to you with detailed recommendations, allowing faster decision making more accurately.
Having accurate figures allows you to manage the most significant expense your business has, "taxes". Tax Planning becomes critical before year end.
Year-end tax planning is a way to be sure you know your tax picture each year and helps you be more proactive in minimising the tax impact. Sometimes there are things that must be done by the end of the financial year that assists in managing your taxes, that you would not do if you just looked at your situation after year end.
A trusted partner
The truth is that some businesses engage their accountant as a real thought partner and have exactly these kind of rich conversations. Others view the relationship as more transactional.
As a business owner, it’s important that you ask the right questions, have high expectations of what your accountant can do for you and find the right partner because every business deserves a trusted advisor.
Accountants have the financial skills and knowledge to provide educated advice. When you work closely with them over time they will get to understand you and your business more clearly and they can brainstorm ideas and help build on the strengths of the business.
The more you engage your accountant as a thought leader within your business the greater the relationship, advice and ideas that will be generated. Start thinking of your accountant as a relationship rather than as a transaction. Make sure you choose an accountant partner that is willing to become part of your business in that way.
At Azure Group we cherish being involved in all aspects of our clients businesses. We value our place as their trusted advisor and get pleasure from helping them grow.