Here’s a quick one for you – have you ever come across a business that runs without an accountant or a bookkeeper and still thrives? If you have, then that has got to be one in a zillion. But don’t get this twisted; we are not trying to say that other functions of a business are of lesser importance. All the departments work cohesively to achieve the common objectives of an enterprise; so, the failure of one unit can easily cripple all the others.
For now, let’s delve a bit into the accounting and bookkeeping part of a business; why does it matter to your business?
From our years of experience, the three reasons below came on top of our list of the importance of an accountant or a bookkeeper to a business.
Most accountants have been part of businesses that just started as well as those that have existed for years. The experience gained in their practice is usually vital towards guiding your business through its various growth stages. They back up the attained experience with their knowledge about the business world to provide you with sound advice regarding growth and development strategies.
Tax planning is not just about reporting and filing your taxes on time; it also entails a proper understanding of the tax regime and knowing how to legally “beat” the system. If you are going to pay minimal taxes by taking advantage of the available loopholes, then you’ll need an accountant or a bookkeeper by your side.
However, be sure to go for the experienced ones just to be sure that they have the right knowledge and experience required to get the job done well.
Lack of proper planning of business finances can pose serious problems to an enterprise. We like to believe that most businesses that have encountered liquidity issues would have prevented or corrected the underlying problems in time if only they had a good cashflow management system in place.
Someone with little to no financial knowledge is not likely to establish a proper financial management structure; an accountant, on the other hand, is well-equipped with both the knowledge and experience in cash flow matters. A good cash flow system will detect any financial abnormalities way before they affect the business.
Other reasons why you need a bookkeeper or accountant include:
Accountants and bookkeepers can spare your business the agony of unexpected financial distress; having them look over your paperwork can help you streamline your business processes.
At the end of the day, all the mentioned reasons not only save you money but also the time that is better spent on serving your customers. That said, should you need assistance in this regard, feel free to talk to our team of expert bookkeepers today.