Behind the lack of personality, is there more to my accountant?
As a business owner, turning a profit will be high on your list of goals. And if you want to generate the best margins, that means keeping an eye on the money going in and out of the business.
So, how can your accountant help with this?
While filing your accounts and tax returns are an essential part of being in business, at Business Street we are far more interested in helping you with financial performance, business strategy, and putting you in better control of your finances. With the right accountant, you can actually save money – in both the short, medium and long-term.
Ok, ok, who doesn’t like that. But that’s not what I’m used to, Turning a profit will be high on your list of goals so you’ll have to tell me more.
The less expenditure you have as a company, the bigger your profit margin. It sounds so simple, doesn’t it? - The smaller your costs, the larger your profit. But if you’re not fully in control of your financial management, it’s tough to know WHERE you’re spending money and WHY you’re not achieving your profit targets.
This is where working with a good accountant adds a huge amount of value. Your accountant helps put you back in the driving seat of your finances – you still have to drive, but it’s easier if someone helps navigate to where you are going.
So, what specific things can your accountant do and what will the impact be on the future of your business?
Tax advice and planning – tax costs can be one of your biggest outgoings as a business, so we’ll focus on getting your tax planning under control, applying for all the relevant tax incentives and concessions, and ensuring you minimise the taxes on your profits. By paying only what you’re legally required to pay – and making use of any reliefs – we can significantly cut your tax spend in the business.
Cash Flow management and advice – ‘Cash is King’, no doubt you’ve heard that before, but it’s true. Unless you can balance your business’s cash inflows and outflows, you’ll never have the available cash to pay your bills, pay your payroll, or cover your operational expenses. We’ll show you where money is going out, and coming in, so you achieve the ideal positive cash flow position.
Cost control and spend management – to improve your cash flow, one way is to reduce your cash outflows. An important way to do this is to focus on cost control and spend management, reducing your expenditure, removing unnecessary costs and negotiating better deals with your suppliers. While there is a limit on cost control, best practice will ensure a bad and mean, lean machine.
Forecasting and financial modelling – when we understand the key financial drivers in your business, we can build you a full financial model. What does that mean? Predicting and planning for the future gives you a clearer view of the path ahead – what’s coming, what to avoid, and what to change up, which is invaluable in challenging economic times like now.
Better management reporting and information – your decision-making depends on the information you have available to you. Accountants provide detailed management accounts, breakdowns of key metrics and forecasts of your cashflow, spending, aged debt and revenue – all of which help you to save money, make sound decisions and keep the revenues flowing into your business. Beyond the lingo, this means better decision making and better business.
Hmmm, interesting, I’m still here. What next?
Rather than running your business on a wing and prayer, by working with an accountant, you get a clear picture of your business finances. We’ll help you cut unnecessary costs, optimise the most profitable parts of the business and increase your overall return on investment. And if you find a really good one, they even do all this while speaking your language.
Talk to us if you are ready to move beyond beige with your accountant.
