Many business owners assume that they don’t need an accountant or a bookkeeper because they have a small business and straightforward finances. Unfortunately, business owners with this kind of thinking often end up with business failure as they find themselves struggling with the effort and time in managing accounting and bookkeeping work, making mistakes and losing time trying to fix those issues. As a result, they don’t give enough time to making effective business strategies. It doesn’t matter what your business is about or what industry it is in, it’s vital that you must have a professional accountant by your side. Business finances are the backbone of a business. When it comes to making financial decisions, evaluating your business performance, and planning, a good understanding of your numbers is crucial.
What Does An Accountant Do for a Company?
In addition to helping with taxes, a skilled accountant provides a wide range of financial services, such as bookkeeping, financial reporting, cash flow management, budgeting support, and analysis. Additionally, they can handle the filing of Business Activity Statements (BAS), offer strategic financial planning, and establish and oversee payroll.
You can make sure your tax obligations are fulfilled and your company’s financial records are accurate by working with an accountant. More significantly, a qualified accountant assists you in comprehending the financial situation of your business and provides helpful guidance to boost profitability and sustain long-term business expansion.
Does Your Business Need An Accountant, Bookkeeper, or Both?
Accountants and bookkeepers both are involved in a business to perform financial tasks. A bookkeeper is responsible for recording daily financial transactions, reconciling bank accounts, and maintaining financial records. On the other hand, an accountant is responsible for reviewing this data to provide insights, support business decisions, and prepare tax returns.
If your business is small and has straightforward financial transactions, a bookkeeper might be enough to handle your transactions. However, if you have growing business, hiring an accountant would be a great choice. For the best results, many small businesses consider hiring both. Bookkeepers manage daily financial transactions while accountants manage long-term strategy and compliance.
What are the Benefits of Hiring An Accountant?
- Accountants make sure that your financial transactions are accurate and updated. They understand ATO requirements and tax laws to help you stay compliant.
- You might know that financial management takes time. If you are spending hours creating spreadsheets and tax forms, you might be missing out on new opportunities to grow your business. A professional accountant takes this responsibility so you can focus on business growth and operations.
- Tax preparation involves several tasks and it goes beyond submitting your return. An accountant helps you prepare, identify and claim deductions, and implement tax-saving strategies. Tax accountants know what you are eligible to claim and when.
- Whether you are looking to expand your business, improve profits, or apply for funding, your Tax Consulting Partners can guide your financial strategy.
When Should You Hire An Accountant?
There are many moments when you may realise that your business needs an accountant.
- When you are just starting a new business and would like to know what business structure you should choose.
- When you start expanding your business, financial management becomes difficult to handle.
- When you hire new employees, you need payroll support.
- When tax season is around the corner or you want someone to lodge BAS and tax returns.
- When you are looking to scale or sell the business.
At each phase of your business, accounting services for a small business add value and help you make right business decisions.
Conclusion
Accountants are not just responsible for tax return lodgment, they are also trusted advisors who can help you save time, manage risk, grow your business, and reduce tax legally by claiming potential deductions. Whether you are a startup business owner or running an established business, working with Tax Consulting Partners gives you confidence in your finances.
