An accountant can help you increase the profitability of your business. Indeed, the services and professional insight of many professional accountants can quite easily pay themselves off in dividends as businesses can thrive and flourish by putting into action the advice of a reputable accountant. How exactly can an accountant help your business become more profitable?
Financial Deep Dive and Analysis
Every business has pain points, i.e. products/services that are not as profitable as others or are highly unprofitable. For large corporations, business consultants often help them devise BCG matrices listing out ‘cash cows’ and other categories for their (often large) product/service catalogues.
Smaller businesses have the benefit of having the finger more directly on the pulse, so to speak. An accountant can work with a business owner to analyse sales numbers, project trends for sales and expenses, and devise a plan for future profitability. Moreover, deep financial analysis can help business owners cut losses (real or anticipated) by highlighting laggard products/services as well as areas of inefficiency or waste.
Tax Optimisation
A big one that all businesses must comply with in Australia, ATO tax regulations can be complex and cumbersome. At best, your business just ‘gets it done’ and lodges taxes to remain compliant, perhaps not taking advantage of benefits for which they’re eligible. At worst, you could receive audits or be potentially losing out on thousands or tens of thousands of dollars through inefficient tax planning and structuring.
A best accountant Melbourne can help you minimise (legally) your tax burden, maximise deductions, keep your business compliant, and push for tax credits and any other incentives that may exist – many of which you may not have known about.
Improved Cash Flow
In our previous blog posts, we’ve described what cash flow is and how vital it is for businesses. Some old-fashioned but relevant sayings include “cash is king” and “a bird in hand is worth two in the bush,” or as an accountant might say “$50 in cold, hard cash is a lot more valuable than $50 in an accounts receivable journal entry.”
In short, accountants help businesses optimise the flow of inbound and outbound cash and liquid assets so that they’re paying employees, suppliers, and utilities on time whilst forecasting trends in cash flow to avoid any hiccups or problems later on.
Professional Consultations
Accountants don’t sit in a room quietly adjusting their reading glasses and jotting down journal entries in large tomes (well, today it’s mostly done on computers anyway). A big part of being an accountant is working directly with clients, having feet on the ground with the business owner, physically being in their shop, office, or place of business and understanding their real-world needs and desires.
In doing so, a professional accountant can give you the best possible services tailored to the needs and circumstances of your business. Consultations can be incredibly insightful for them, but they should be very insightful for you as a business owner as well.
Badawy Large & Powers
Take your business to the next level with professional accounting services from Badawy Large & Powers.
Read Also – Role of an Accountant in Navigating Australian Taxation Law