Home » community » News » 5 Reasons Why You Need an Accountant for Your Business

5 Reasons Why You Need an Accountant for Your Business

Entrepreneurs are often lauded for their “jack-of-all-trades” approach to starting their business – doing what they can themselves in the early stages to keep costs down and stamp their mark on their new business venture. One service in particular that is overlooked, however, is that of an accountant. Aside from needing someone to take care of their tax returns, business owners benefit in a number of ways from engaging accounting professionals to deal with their cash flow, tax and compliance, and more. So, why do you need an accountant for your business? Let’s have a look at 5 key reasons…

1. Accountants save you time.

Yes, you are able to do the taxes of your thriving business, but have you considered how much money you lose by just doing taxes? Remember, time is money. If for example, you spend a good eight hours computing your dues, and your time is worth $100 per hour, that means you spend $800 every time you deal with your taxes. And since you’re not a tax specialist, you run the risk of making mistakes. Hiring an accountant helps you get rid of those time-consuming tax tasks, so you can focus on matters – developing your business and generating revenue. You will also have the confidence that a professional is the one dealing with your taxes and your tax position will be optimised as a result.

2. You get a more realistic view of your business plan.

A lot of entrepreneurs often have great business ideas. However, no matter how good these are, it doesn’t mean that they fit their existing situation and therefore, these ideas might not turn out well. By involving an accountant from the early stages of business planning, you can establish a more realistic business plan that steers you in the right direction. That’s because an accountant can create reports and financial projections, and give you professional advice to develop an effective business plan.

3. You will get a better understanding of your business finances.

As a business owner of a growing enterprise, you will come to a point where you won’t have the time to deal with every facet of your company. If you feel like you’re losing track of your finances, it is a wise decision to engage an accountant. An accountant will provide you with reports that give you a better understanding of your company’s current financial status. This can also enable you to keep track of your business’ cash flow, revenue, and a much more – informing better decision making and forward planning.

4. You can determine the business structure that suits you.

There are four main business structures in Australia— sole trader, company, partnership, and trusts – and they all have their different utility, tax implications, and other features. Choosing a structure depends on what your business needs, and an accountant can explain and help you determine which business structure is most suitable for you. Then as your business develops over time, your accountant can advise if a change of structure is appropriate.

5. You increase your chances of business loan approval.

In order for you a lender to sign off on a business loan, you need to prove to them that you are able to service that loan. With the help of a professional accountant, you can provide the bank with figures that support your application for a loan. An accountant can also help you determine a type of loan that is most favourable to you and refer you across to a finance broker.

All that and more!

There are plenty of other important reasons to engage the services of an accountant for your business besides the items listed above. If you’re ready to make your business ideas a reality, or take your existing business to the next level, please contact us for a free initial consultation on 08 9325 2411 (Perth), 08 9301 2200 (Joondalup), or via our website.

written by:

McKinley Plowman