3 Unique Ways A Professional Accountant Can Help Your Business Grow
Filing annual tax returns and ensuring accurate financial records can determine the performance of your business as it was. However, they don't often tell your business's future. For this reason, it's imperative to combine strategic thinking with professional financial expertise to achieve meaningful business growth.
It's wise, therefore, given the limited resources and time, for you to enlist the services of an experienced accountant. Ideally, accountants are more experienced in dealing with business challenges than other management team members. Continue reading to learn how an accountant can help your business grow.
Keeps You Abreast of the Ever-Changing Business Laws and Regulations
Indeed, it'll be challenging for any business to grow without understanding the applicable laws and regulations. Professional accountants ensure that you adhere to deadlines when filing tax returns. They achieve that by developing effective accounting systems that simplify this process to help your business remain tax-compliant.
Consequently, this helps alleviate the complications arising from liabilities, including VAT, pension fund, sales tax and income tax. Additionally, the accounting professional will assist your business to reduce tax bills by identifying tax deductions and incentives you're entitled to but aren't aware of.
Utilise Break-Even Analysis to Gauge Growth Options
Another critical way your accountant can help you is by setting up budgetary and forecast reporting. They start by setting goals to attain over the financial year, utilising graphs and charts to determine whether these assumptions are attainable. They help ascertain your previous year's performance to make informed business decisions.
Based on these reports, you'll prove how fixed costs, like administrative and variable costs, like inventory, compare with your sales volume. Consequently, that helps you to determine whether market conditions and seasonality, among other factors, might affect your business. You can quickly design a break-even analysis by understanding your business's revenue over time, market conditions and periodic expenses.
Compare Your Numbers Using Industry Benchmarks
A professional accountant will utilise financial benchmarking analysis tools to provide you with a report comparing your business to your competitors. An excellent starting point is understanding the industry-specific standards applicable to your key performance indicators (KPIs). You'll know whether you're on the right track or performing dismally.
Besides, you'll understand whether your cost ratios are too high or within the required standards. Ideally, your accountant will advise you whether to change some business aspects and if this would positively impact your bottom line.
These are the three ways a professional accountant can help your business grow. Consider hiring a reputable accountant to take advantage of an accountant's expertise. For more information, contact an accountant near you.