When starting a business or in fact at any stage of a business, finances have a huge impact on our decisions. Some business owners start with very little or even no money at all and have to think very carefully about what they spend on in the early days of their business.
If you don’t know or understand where your business money comes from or goes to, how can you work out what makes you money and what doesn’t?
An experienced accountant can help advise you on any decisions you already intend to make. They can fully understand reports and look at your business as a whole. They also don’t have any emotional attachment to the business and therefore can be brutal with what needs to go and what needs to stay.
Having a process of keeping financial accounts is vital with any size business. Even if you deem yourself as a very small business, you need to know what is going on with your money, if not how will it be a viable business? What if you decided to expand and started to look for investors, they would want to see how healthy the business finances were, they expect up to date, robust monthly finance reports. Even if you were struggling and going into administration, having full up to date accounting information will help the creditors.
How do accountants help with goal setting?
Do you feel that accountancy will help with your business decisions? If not, how will you set business financial goals alongside performance metrics if you don’t know what income you make from one year to the next?
How will you know if you can afford to employ a member of staff or purchase new stock if you don’t have any record of your finances? If you wanted to buy a state of the art printer that should print 4 x quicker than your current printer but the ink costs more than your current one, how will you determine whether it is truly going to make you more money than your current one? You would need to know how much each printout is costing you and how many you do each day etc. At the end of the day, you will need to determine whether it will increase your capacity and therefore bring in more income. This is a cost-benefit analysis.
How can hiring an accountant help reduce my business costs?
The accounts of your business can feel overwhelming but it is something that can make or break your business. There are several easy to use software packages, such as Xero, that can help you or if you invest in an accountant or an on-demand Finance Director/CFO it can make a real difference to your business and it can reduce your outgoings, increase income and therefore increase your profit margins.
An accountant’s service is much more than reporting historical, year-end compliance requirements, an accountant can be your business partner guiding your business alongside you, driving for success.
Do you need an accountant that works with you beyond just yearend compliance? Why not book a free, no-obligation discovery call today to discover how Logical BI can support your business;