5 things your accountant should do for your business
Choosing the right accountant is an essential part of future-proofing your business and ensuring long-term growth. Find out the top 5 things your accountant should be doing.
However, the reality is that a skilled accountant has much more to offer. Here are five fundamentals that your accountant should be carrying out to help boost your business.
1. Protecting assets
Asset protection refers to lawful strategies that can be used to guard your wealth against confiscation. The goal of asset protection is to shield your assets from unexpected legal claims by would-be creditors, for example, in the case of a lawsuit or divorce.
A skilled accountant can assist with asset protection by taking into consideration your personal and professional assets. Examples of assets might include cash, property, vehicles, equipment, and other valuables. When your accountant has a clear idea of your net worth, they can identify and implement a plan to ensure you have appropriate levels of asset protection.
As part of the asset protection process, your accountant should also be able to advise you on where to allocate profits from your business. The objective of these conversations is to contribute to your overall wealth creation and to safeguard your long-term financial wellbeing.
2. Reducing costs
One of the simplest ways for a business to boost its bottom line is to reduce costs. An accountant can help you to recognise cost-saving opportunities – whether that involves reducing fiscal administrative fees, consolidating debts, claiming eligible tax deductions, or minimising tax liabilities.
An accountant will help keep your financial records in order and in-step with applicable laws, regulations, and obligations. On top of all that, accounting fees are also tax deductible, meaning that working with an accountant can save you both time and money. What’s not to love?
3. Minimising tax
Speaking of tax, here’s where a clever accountant really comes in handy. Professional accountants understand Australia’s intricate taxation system. They’ll help you navigate the complexities to ensure you only pay the correct amount of tax.
Accountants can help you to maximise tax incentives, and can even propose ways to restructure your business finances to legally reduce your tax bill. At the end of the day, tax is one of life’s certainties, but you should only have to pay your fair share.
4. Financial benchmarking
As a business owner, it’s easy to get absorbed in day-to-day operations. The good news is your accountant should have your back – and can help continually benchmark your business’ performance against industry standards.
Financial benchmarking involves comparing your business’ operating costs, gross profits, net profits, sales trends, and other figures that can highlight strengths or weaknesses within your own business. For example, this analysis might uncover the need for a new pricing model to ensure your business is charging enough for goods and services.
Furthermore, financial benchmarking helps to keep you and your team accountable for the monetary outcomes within your business. This can mean celebrating the wins and viewing any losses as an opportunity for growth.
5. Goal setting
Finally, your accountant should be able to support you with short and long-term financial goal setting. Your accountant should chat with you about your personal and professional objectives to understand what you want to achieve, and to evaluate the financial factors involved.
For example, it’s not uncommon for business owners to imagine they can double or triple their business within twelve months, without considering the cash flow implications. A good accountant can help you to see every angle, so that you can make informed and advantageous decisions for your financial future.
__
In short, a skilful accountant can help improve your business and enhance your overall financial position. To speak with an accountant worth investing in, chat to the team at Hatcher today.