Small and medium business owners know they need an accountant’s help when it’s time to file tax returns and compile annual financial statements. Yet, many don’t realise the role accountants can play in improving their lives throughout the year, not only when it’s time to meet a compliance deadline.

Whether an in-house finance director or an external accounting practice, your accountant can add enormous value to your business, helping it grow into a thriving, compliant entity. Today’s accountants can record and crunch the numbers for you, but they can also do so much more. They are also leaders, strategists, technologists, advisors, and business specialists who can give you invaluable advice.

The following are some of the ways an accountant can support your growth:

Increase profitability

Accountants play a crucial role in supporting small and medium businesses to reduce costs by delivering insights that can increase profitability. Your accountant can analyse expenses and find ways to improve cash flow management, reduce debt, negotiate with suppliers, control costs, budget and forecast, optimise pricing, and streamline reporting to facilitate better decision making.

Monitor financial reporting

Your accountant can help deliver business insights from your financial records. An accountant will work with you to understand whether financial performance tracks your goals and budgets. They can clean up your records, get them up to date, and assist you in keeping track of expenses and debt. Your accountant can also help allocate your budget appropriately.

Advise how to structure your business

As your business grows, the legal structure that worked for you in the past may not be ideal going forward. Your accountant will look at the advantages and disadvantages of each business structure, considering its tax-saving and non-financial considerations. They can advise you on whether to set up as a sole proprietor, partnership, or limited company or convert into one of those.

Keep you abreast of changing laws and regulations

Your accountant ensures you don’t miss tax filing deadlines, but they can also help you develop accounting systems and processes that make it simpler for you to remain compliant with the latest labour and tax laws and regulations.

This can remove much of the pain from liabilities such as GST, income tax, and pension funds. What’s more, your accountant can help you minimise your tax bill by helping you to identify tax deductions, tax exemptions and incentives you were not aware of.

Best use of technology

Accounting practices and accountants these days are early adopters of innovative technology. They can provide you with good advice as you digitally adopt automated solutions and move your business to the cloud. For example, they can help to automate repetitive, low-value activities so you can focus on what truly matters to your business.

Plan for the future

The accuracy of your budgets and forecasts can make or break your business. Projected financial statements look at past financial trends, market and economic conditions, changes that are likely to happen in the market, and business expectations to arrive at a future financial scenario. These statements will help you plan for the future. Your accountant will not only produce them but collaborate with you to interpret them.

Your finance partner

Their advice can assist you to improve cash flow, forecast financial performance, and provide a clear picture of the levers you can pull in your company to increase profitability, resulting in increased shareholder value.

Conclusion

Your accountant is more than just a number-cruncher or a person who ensures tax compliance. He is your strategic finance partner who can provide valuable insights throughout the year and contribute to the growth and success of your business.

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