If you’re thinking that the work of an accountant starts and ends with tax and compliance works, then you may want to rethink that statement, they do more than just crunching numbers.
So, what does an accountant do? Here are 5 ways you did not know what accountants are capable of doing for small businesses!
Generally, accountants are hired to deal with the primary task of preparing and examining financial records. This includes but is not limited to:
Ensuring financial statements and records comply with existing Australian tax laws and regulations
Advising on tax obligations, preparing tax returns and lodging BAS
Compiling and analysing financial information to prepare entries
Checking accuracy of financial statements and resolving any discrepancies
Inspecting books and account systems to keep them up to date
Organising and maintaining financial records
Preparing and processing payroll entries
Reviewing budgets, payroll, invoices, expenses, revenue, and other accounting documents
Interacting with internal and external auditors to complete audits
But beyond these typical day-to-day functions, there are other tasks where you can leverage your accountant’s skills and expertise.
1. Get your business up and running
Venturing into a start-up can be all fun and exciting, but it needs more than a single idea to keep it running and flourishing. You need to know if your business venture will be profitable to attract investors and lenders. The good thing is, an accountant can do just that.
Accountants can help test the waters, from estimating your business operating costs to exacting revenue forecasts. On top of this, risk analysis can also be used to assess the business strengths, weaknesses, opportunities, and threats. They are also reliable when it comes to identifying prospective lenders and investors, so you are assured that the right people are pitched to finance your business start-up.
2. Manage your cash flow
Many successful businesses went bankrupt due to inability to manage their cash flow ineffectively. Your money is the blood that runs the business. Hence, it must be handled well and smartly because even a profitable business is deemed to fail if the revenues are low but the expenses are too high. This is where accountants come in.
They can help to enhance businesses efficiency where money is concerned suggesting ways to reduce costs, enhance revenues and improve profits. They will first evaluate financial operations, identify potential issues, strategize solutions, and implement these tactics to help the organisation run efficiently.
You can surely sleep soundly at night knowing that suppliers are paid, staff are well-compensated, and cash reserves are spent smartly.
3. Provide moral support
Apart from helping you in the financial aspect, accountants can also provide support morally. As they are aware that staying on top of your business can be tiresome at times, an expert accountant can help boost your morale and keep you focused on your game.
Certified accountants care for your business as if it is theirs; so, when things get tough, you can always count on them for moral assistance as well. They can help you cope with stress by breaking down large financial issues into small, manageable parts. They will help you strategise as to how to tackle one problem at a time.
4. Automate administrative tasks
Your accountant can automate a lot of repetitive tasks that take up too much time and energy when done manually. This can vary from scheduling staff’s time, tracking sales, charging and invoicing payments, and processing payroll.
Smart business software often comes with features such as cash flow dashboards, KPI tracking, automated accounts payable, a handy mobile application, and other cool integrations so you can keep an eye on business anytime and anywhere. Implementing automation in your business’ financial transactions can be done with ease through the help of certified Aone Account and Bookkeeping experts.
5. Deal with inventory, debt, and unpaid invoices
Do you spend a lot on storage, or lose money writing off obsolete or damaged goods? Or do you sometimes lose revenue because you run out of stock? Smart inventory management is critical to doing good business.
Are you dreading to deal with the debts and unpaid invoices that have been piling up, along with your other responsibilities? Or are you scratching your head, thinking how to process all obsolete and damaged goods? Then, hiring an accountant is the best move for you.
Effective borrowing strategies, real-time invoice systems, and smart inventory management are all critical in running a business. Your accountant can help you identify good debt from bad ones, and create a strategic borrowing plan for you. Likewise, they can set up payment reminders for your customers to notify them of their due dates. Lastly, an expert in the field can help you identify the cost of holding inventory and predict stock needs through a software that tracks stock levels and the status of the goods.
I hope this guide has shed light on what an accountant does for a business. TLDR — aside from keeping your business’ financial health at prime condition, accountants can also provide a game plan to help your company save money or boost revenue. Furthermore, tech-savvy accounting experts, automate administrative loads that can distract you from your core business activities.
When in doubt, you can never go wrong with asking professionals to handle financial tasks for you. At Aone Account and Bookkeeping, we take pride not only in providing reliable accounting and services, but also in giving business advice at a personal level. We make sure that we know your business pain points, so we can create a business strategy that is customised for your needs. Reach us via phone at (02) 4555 1847 or through email at support@aoneaccount.com to benefit from our free 1-hour consultation, and get your finances handled by our trusted accountants.
