1. Reducing workload
2. Streamlining books of accounts
3. Paying the right amount of tax
4. Preparing financial statements
Hire an accountant to help accurately draw up financial statements, including your balance sheet and profit and loss statement. This is necessary for compliance purposes and enables you to make an informed call before investing in more assets or taking out further loans.
5. Improving cash flow
Regardless of how well-balanced your assets and liabilities are, any small business can get into trouble if it doesn’t have a proper flow of ready cash. Hiring an accountant can help you manage your cash flow so that all expenses are paid on time, which will improve the faith your creditors and shareholders have in you.
6. Reviewing documents and agreements
Your accountant can review any agreement you are entering into and pinpoint the tax and accounting implications involved. This will prepare you for any obligations you may have and help you avoid any negative situations regarding cash flow and financial planning.
7. Getting assistance in taking out loans
An accountant can help you take out the right loan for your business by presenting a suitable case to the lender. They enable you to put together the correct credit information and business records while identifying appropriate loan repayment sources. They will also help you pick from various financing options ideal for your business.
8. Handling regulations
Apart from tax, there are several regulations your business needs to comply with, and these go up the bigger your business is. Hiring an accountant helps you stay on top of all these regulations and steers you clear of costly mistakes.
9. Managing audits
Once your business crosses a specific size, a statutory audit is compulsory, which your accountant can help significantly with. Even for smaller companies, an accountant can run an internal audit to ensure that financial processes are running smoothly and that the business is on track to meet its goals. If you’re in a similar boat, hire an accountant!
10. Tracking your expenses
Accountants will help you get a handle on where your business money is going, including maintenance expenses as well as things like travel and entertainment costs. This will give you insights into expenses you can avoid while also prepping you for when tax season rolls around.
11. Reviewing your accounting needs
Your finances and financial needs will grow in tandem as your business grows. An accountant can keep track of this growth and make suitable recommendations on what needs to change, such as switching to a more advanced accounting software capable of handling more complex records. They will also address any changes related to cash flow, employee agreements, or tax requirements, which is particularly helpful if your business experiences a sudden growth spurt.