A good accountant isn’t just a service provider that focuses on the financial aspect of a businesses’ earnings, they could be a genuine asset to a company – and one that allows your agency to thrive no matter how competitive the market. Without carefully laid out finances, you might find yourself struggling to submit your tax returns accurately, or wasting cash on unnecessary activities when it could have been saved or spend elsewhere.
What is an accountant?
In the simplest terms, an accountant is a financial expert that tracks transactions for (or on behalf of) a company or individual trader. It’s their job to monitor these transactions to keep an accurate record – but a little known fact is that they can also help a business to reduce their overheads by honing in on sources of waste.
A bookkeeper offers similar services and regardless of which expert you opt for, as long as they can help you to keep on top of your expenses, overheads and profits – you’ll stand a much greater chance of reaping the rewards as the years go by. The end-goal of all businesses is to thrive in their market and although most will enter an industry with good intentions; unless they are financially savvy and capable of maximising their profits; they could quickly start to suffer.
And that’s why an accountant can be so beneficial.
How can they help?
Although most will be hired with the aim being to monitor and record transactions ready for a tax submission; the fact that every sale and expense can be recorded offers its own unique advantages. For example, if a company is spending too much on a particular product, if they are hiring a department that isn’t necessary, or if they could divert their expenses into another allowable practice, then they may stand to benefit by saving money.
Without a dedicated accounting specialist, many companies can struggle to achieve this type of clarity and this is why plenty go years before realising just how much they have wasted. Expenses aren’t always easily spotted and although the Tax Authority in Australia is cracking down on those that exploit the types of things that can be claimed for; those that adhere to their guidelines can be far more likely to avoid being audited, whilst potentially reducing their tax by thousands in the process.
Any business hoping to market themselves and enjoy a return on investment should strive to hire an honest, reliable accounting agency to look after their finances – even if it’s only on a temporary basis. But that being said, the longer that a specialist is with the business, the more likely they can be to spot discrepancies, or hone in on cash waste, to better-protect their employer.