A good accountant can be worth his weight in gold, for example completing VAT returns quickly. Businesses that are doing well are thousands of moving parts, which all happen simultaneously, and are very difficult to keep track of all of the time for the average business owner.
A business owner is always going to do what got the business to a profitable position in the first place. That may mean that much of his or her time is spent mingling with customers, working on advertising, or whatever activities made the business successful.
This is why the business owner hires an accountant, to keep the day-to-day books in order to have a live record of what is happening to the money. The accountant is in a perfect position to not only keep track of things, but to also be on top of money saving ideas that are only seen by him or her.
Take for example, taxes at the end of the year. A good accountant will organize your business items that can be deducted. Instead of just throwing receipts in a drawer, it might be a good idea to keep copies of the receipts electronically, and use a system that automatically organizes them into categories so they will readily be available at tax time.
Cost control is another area that a good accountant will be able to police and give good advice as to what expenses to reduce and where to find better bargains for supplies, for example. As the accountant sees the operation of the business from the financial side of things, he can be better able to keep track of the expenses.
Cash flow advice is a critical factor in any business, as it is important to have enough cash on hand to be able to take advantage of discounts when paying bills and getting good deals on inventory purchases. A good accountant can be instrumental in helping to plan properly so that cash flow makes cash available when it is needed the most.
Business planning is another area where an accountant can be very helpful. Most accountants have worked with businesses at all level, from startups to those that flourish, and those that don’t. How to structure a business is vital.
Of course, tax planning and knowledge of regulations is extremely important, and your accountant will know how to handle all of the phases of tax, from payroll to filing income taxes. Saving taxes is a big factor in any business success, and a good accountant will shine in this area.