9 Ways Your Startup Will Benefit from a Business Accountant Service
To most people, and most businesses, the main service an accountant provides is to make sure all of their finances are in line for tax season.
A good business accountant or accountancy firm can do more than merely ensure your tax numbers are correct. They provide benefits to your business year-round and help it thrive.
There are many good reasons to obtain help with your accounting needs.
The main benefits of hiring an accountant service include:
1. Tame the Stress Beast
Stressed? Finding work-life balance to be a cruel hoax you dimly recall discussing in grad school?
Forbes magazine lists 'no time to do it all" as one of the three common stressors on small business owners.
You can be extremely proficient with all aspects on the finance side of things. But you may find doing it all takes even more time than it might otherwise.
Letting professional accountants manage things will give you time to improve that work-life balance. It's pretty important stuff.
Physical exercise, relationships management, parenting, and personal financial management are all areas that small business owners admitted to neglecting for the sake of the business.
2. More Time to Focus Elsewhere in Your Business
When business grows, the time spent on all of the administrative support functions expands significantly. Financial management is certainly no exception.
As a business owner or Operations Manager, it is critical you stay smart about your budget, cash flow, cost controls and so forth.
But getting "into the weeds" with journal entries, paying bills and accounts receivable may not be the best use of your time.
3. Better Control over the Business
Perhaps it's the old saw in play here--you don't know what you don't know. Getting another set of eyes on your existing processes and controls, as well as obtaining new ideas, can't hurt.
In short, turning to a professional accountant for help with the financial side of things can reduce your stress level. It can free you to focus elsewhere in your work, and improve financial controls.
4. Sync Your Business Practices and Business Goals
Strip away all the intricacies of the law, regulation, and best practices that complicate an accountant's job. You will see their work mainly revolves around tracking money and resources coming into and leaving your company.
As such, accountants are in the best position to see what your main revenue generation streams are. They can see what creates the greatest (or most surprising) expenses.
A skilled accountant can look at your balance sheets. They will help you determine if the way your company makes and spends money will meet your long-term goals.
You decide if it makes more sense to change your business practices. Or you can decide to meet your goals or change your goals to match your current business practices.
5. They Can Analyze Financial Information and Trends That Impact Your Business
Financial information is often laden with jargon that accountants are familiar with, to the extent that non-accountants are either lost trying to read that information or take the wrong lessons from it.
No matter your business interests, accountants have the knowledge to make use of industry-specific financial data. They have the eye to spot market trends others would miss.
This matters for all companies, but even more so those who have gone international or wish to move into international markets.
6. Explain to Managers and Other Staff How to Increase Performance
Businesses often take information from accountants. They then hand it to someone who is not enough of an expert to fully understand it. They may even ask them to explain what it means to everyone they're responsible for managing.
A full-time accountant, or a regular contract with an accountancy firm, gives you access to people who can best explain the financial situation of the business. They can explain why certain changes are necessary for better performance.
7. Vast Experience
The strength of an entrepreneur is often her ability to push forward through doubts and question. But this can become a liability when best financial practices are elided or ignored.
An accountant can look at history, show what similar businesses have done to give themselves the best chance of success, and give the owner a path forward using that learned wisdom.
8. Spot Financial Risks Before Anyone Else
Since accountants are responsible for the company's financial records, they can see when something is out of line.
This could mean expenses that are unaccounted for, expenses that are rising out of line with incoming revenue, or a reduction in profit that is masked by, for example, an increase in overall business being done. It can also relate to the accountant spotting problematic business trends ahead of time.
No matter the risk, the sooner you know of it, the sooner you can work around it. In short, a good accountant can guide your business toward developing inherent and sustainable value.
If you're interested in finding an accountancy firm that can help your business meet its goals and needs, contact us to discover what we can do for you.
9. Guarantee from a Professional
Unless your friend is a professional business accountant, you should not rely on their services to monitor your business expenses. Neither should you to do it yourself or listen to the faceless masses of the internet.
No matter how competent they seem, their advice can lead to financial risks for your business.
To avoid this issue: Consult with a professional accountant, immediately, even if you have begun some of the accounting yourself. A professional will be able to prepare your business for more complex financial situations. For professional services, contact us.