There are so many day-to-day tasks to be done for your business operation, and hopefully most or all of them add or create value in some form. Completing your company accounting however, while necessary and important, usually isn’t given priority and in many cases is pushed to the back burner for as long as possible. This critical but time-consuming task is often outsourced to qualified and professional accounting firms, but what sorts of benefits are there to leaving your business accounting to a third party rather than doing it yourself?
Professional Expertise and Knowledge
Certified professional accountants provide expertise and knowledge about current accounting principles and can provide immense value to businesses big and small. Accountants have a high degree of proficiency with financial regulations and obligations for different business structures, tax planning, tax regulations, as well as the latest information on possible tax deductions, for example.
This knowledge can pay off in dividends for your business by optimising cash flow, streamlining inventory, reducing tax burden, and more.
Value and Cost Efficiency
A big mistake that many business owners make is to try preparing accounting statements on their own, often without adequate knowledge. More importantly, however, these tasks can be laborious and time-consuming, and since time is money this can be extremely unproductive for value creation within your business.
Instead, consider the opportunity costs associated and how much value can be gained by outsourcing these sorts of tasks to a qualified accountant. Bookkeeping, payroll, tax planning and preparation of Business Activity Statements are ongoing tasks that can detract from your time and resources, so make your money work for you by letting an accountant do these instead.
Free Up Resources Within Your Business
Following on the previous point, outsourcing your accounting responsibilities to an accountant can free up valuable resources. These resources, both human capital and financial capital, can be better allocated to core business operations such as improving sales, generating revenue, improving customer and supplier relations, and much more.
Furthermore, outsourced accounting takes a huge burden off your shoulders that could otherwise be a distraction. No need to be up to speed with all of the minutiae of Australian tax laws when you could be (and should be) providing value to customers, so long as you have a qualified accountant to assist with tax planning.
Mitigate Financial Risk and Streamline Business Operations
Accounting is the language of business, and fluency in that language can ‘grease the wheels’ so to speak by optimising efficiency within your organisation in real, tangible ways. For example, professional accounting can discover bottlenecks in inventory so that you can negotiate with suppliers for more/less deliveries. Another example is with the cash flow statement, an immensely valuable statement that can optimise cash inflows and outflows and result in supplier discounts, dependable payroll and more.
Other areas where a professional accountant can help with are the mitigation of risks such as late or delinquent payments, debt and credit policies, as well as risks of non-compliance with Australian tax laws.
Scalable and Bespoke Solutions for Businesses of All Sizes
Small businesses (just like medium- to large-sized businesses) can grow or shrink in scale, ebbing and flowing with various business cycles. The business accountants Melbourne needs of every business are unique and should be scalable and flexible, taking into account possible restructuring. Experienced accountants can facilitate change by adapting to the current and forecasted trajectory of your business.
Badawy Large & Powers
Contact the accountants at Badawy Large & Powers today.
Read Also – 5 Do’s & Dont’s in Small Business Accounting