1. You save time.
Yes, you are able to do the taxes of your thriving business, but have you considered how much money you lose by just doing taxes? Remember, time is money. If for example, you spend a good eight hours computing your dues, and your time is worth $100 per hour, that means you spend $800 every time you deal with your taxes. And since you’re not a tax specialist, there’s a risk in making mistakes.
Hiring an accountant can help you get rid of that time-consuming task, so you can focus on matters that will help develop your business and generate more revenue. You will also have the confidence that a professional is the one dealing with your taxes.
2. You get a more realistic view of your business plan.
A lot of entrepreneurs often have great business ideas. However, no matter how good these are, it doesn’t mean that they fit the existing situation, therefore, these ideas might not turn out well.
By involving an accountant from the early stages of business planning, you can establish a more realistic business plan that can steer you in the right direction. That’s because an accountant can create reports and financial projections, and can give you professional advice so you come up with an effective business plan.
3. You will get a better understanding of your business finances.
As a business owner of a growing enterprise, you will come to a point where you won’t have the time to deal with every facet of your company. If you feel like you’re losing track of your finances, it will be a wise decision to hire an accountant to help you out.
An accountant will be able to provide you with reports that will give you a better understanding of your company’s current financial status. This can also enable you to keep track of your business’ cash flow, revenue, and a lot more.
4. You can determine the business structure that suits you.
Even if you only exercise for a very short period of time, it will give you an energy boost to help you wake up more quickly, Elrod explains. It can be a seven-minute workout on YouTube. Yoga stretches. 60 seconds of jumping jacks. Anything to help you wake up.
I personally have a 20-30 minute yoga practice in the morning. It helps me get out the sleepy energy from my body and get ready to take on the day!
There are four main business structures in Australia— sole trader, company, partnership, and trusts. Choosing a structure depends on what your business needs. An accountant can explain and help you determine the factors you need to consider so you can identify which business structure suits you best.
5. You have greater chances of having your business loan approved.
In order for you to successfully get the bank’s approval for a loan, you obviously need to prove to them that you are able to give back the money you will loan. With the help of a professional accountant, you can provide the bank with figures that support your application for a loan.
An accountant can also help you determine a type of loan that is most favourable to you.
Other than the items listed above, there are a lot more reasons why entrepreneurs and individuals who require help in managing their finances need an accountant. These reasons include keeping up to date with tax laws, handling financial records correctly, and completing compliance documents for a business.