When asked, “What does an accountant do?” many people answer with accounts, tax or compliance work. While that’s true, what many don’t know is that the good ones do so much more. The best accountants will become a part of your team; they will give you strategic advice to save money and boost revenue, they will help you work more efficiently, and they will not only help you plan for your future, but they will help you get there.
To better answer the question, “What does an accountant do?” here is a taster of what they offer you and your business.
Things an accountant can do…
You need to know that your idea will make money and may potentially need to convince investors of the same thing. An accountant can do that for you, work out your start-up and operating costs, and create credible revenue forecasts.
Getting a stable and consistent cash flow is every business owner’s dream. An accountant can ensure that you always have the money there to pay staff and suppliers, as well as cash reserves in an emergency.
Everyone knows an accountant can help you complete and submit your returns at the end of the tax year. Many don’t know that they can also help you lower your tax ethically, deal with old tax debts, and ensure your books are watertight if you’re audited.
What loan should you choose? Should you use spare cash to repay loans or reinvest in the business? An accountant can help you develop a specific strategy to manage debt in a way that is best for your business.
An accountant takes away the ‘chasing money’ headache by setting up an automated invoice system. When a payment is due or overdue, this will send out automatic reminders to your clients until they pay. Some accountants will even call clients who are very overdue with payments.
Yes, your accountant can help you determine your goals and priorities. They will work with you to set realistic personal, professional, and financial goals and measure your progress to help you achieve them.
Working off a vague set of numbers can result in irreparable damage to a business. With an accountant, you can work to an exact budget where you know exactly what is coming in and going out, how much money you have to reinvest, and all in real-time. As well as having the figures at your fingertips, you will also know the figures you aim for and how long you could last in a crisis.
Applying for a loan is tedious and challenging, but not with an accountant. They can pull together your numbers to help you write a solid application, not to mention give you the forecasting figures that will win over any loan officer.
Should you hire a full-time employee or outsource? Will your bottom line benefit more from a salesperson or a technician? Can you afford to hire and train a new employee? All these questions are essential and should be handled with confidence. An accountant can help you make the best choices for your business and simplify payroll.
Accountants aren’t stuffy number crunchers who speak a different language. They are tech-savvy and future-driven. Using the best tools out there, good accountants can help you automate your business’s accounting so that you’re always on top of your finances wherever you are. As well as implementing this software in your business, they can train you to use it confidently.
In addition to accounting software, accountants can help you unlock the power of other applications to start working smarter, not harder. They can help you increase productivity with your invoicing, payroll, customer relationship management, staff scheduling, time recording, etc., and integrate all these tools together to create an effortless workflow.
Many business owners don’t realise how much money is lost due to poor inventory management. An accountant can help you identify the cost of holding inventory and the revenue lost so you can start placing accurate (and cost-effective) orders.
Do you want to sell your business in the future? Do you have a succession plan? Do you want to retire early? All these questions must be addressed and planned for early in your business journey. As well as helping you develop a plan for the future, an accountant will keep this larger goal in mind and help you stay on track.
A good accountant will become an essential part of your team. They will be your financial advisor for all aspects of your life and will be there to listen and support you whenever you need them (not just appear in your life at the end of the tax year).
Your business, finances, and family's welfare are probably your life's three most essential things. An accountant can help ease this pressure, giving you the reassurance and confidence that everything is being done or is planned for. The result? Peace of mind and being able to sleep soundly.