Think that only big business use accountants?
Think Again! The vast majority of successful businesses will tell you one of the main reasons they got to where they are is by using an effective accountancy practice to help them advise their business and keep them in positive cash flow. Here are 9 powerful reasons why you should have an accountant even when you are just starting out:
1. To assist you in enhancing your Cash Flow
The energy that keeps your firm functioning is money. You won’t be able to run or expand your firm effectively without having sufficient control over your cash flow. The management of your cash flow is crucial to the success of your company. Without enough cash, even the most prosperous companies eventually go out of business. We have put together a useful cash flow guide to aid you in better understanding and managing your cash flow.
Hiring a competent accountant helps ensure that you have effective credit control and cash management procedures in place, giving you access to all the resources and data you may need. In order to sustain a healthy cash flow, a corporation must effectively manage its operations, business activities, financial investments, and financing activities. To exist, a firm needs to produce enough cash flow from its operations to pay its bills, return investors’ money, and grow. A firm needs to manage its cash in order to keep the appropriate amount on hand to cover both short-term and long-term obligations. This is in addition to earning cash through its operations.
2. To lessen your workload
When your company starts to grow, you will need to devote all of your time to managing day-to-day operations rather than spending it on compliance, taxes, or bookkeeping. Similar to this, if your company’s finances become more complicated, you’ll almost definitely require a professional to manage them. By suggesting process changes, handling the financial and tax duties, and introducing you to solutions that can help you save time and money, hiring an accountant will help you manage operations.
3. To assist you in effectively managing growth
A developing business has a variety of requirements, including managing the need for capital, selecting the best personnel, controlling cash flow, enhancing customer interactions, etc. An accountant will take care of the financial and tax duties, suggest process changes, and assist you manage operations by introducing you to solutions that can both save you time and money. Their knowledge will be useful when looking for funding and developing staff incentive pay plans. Even if the word “growth” seems positive, it has drawbacks of its own. Unexpected growth that you hadn’t anticipated might be just as problematic as development that is too slow, causing all sorts of problems with cash flow, taxes, personnel, or office space, for example. A competent accountant can assist you in promptly and efficiently responding to unanticipated growth and transforming it into what it should be: a benefit.
4. To offer insightful business advice
Accountants are equipped with the necessary knowledge, abilities, and resources to act as business advisors. A seasoned accountant will have encountered most of the issues and difficulties you may face because of their extensive experience working with clients from many industries. They bring a lot of expertise to the table. An accountant may therefore act as an objective sounding board for your ideas, forewarn you of potential dangers, and make you aware of excellent chances. Their network will help you make contacts with important people who can aid in the implementation of difficult strategies and the resolution of complex issues, which will bring additional value to your business decisions.
5. To assist you in keeping up with trends and legislation
An accountant must stay up with new trends, innovations, and changes in laws and regulations in this day of developing technologies. They are also generally aware of the major pressure points a firm experiences at various periods of its life. A competitive accountant will help you visualize major issues the business faces as a result of economic uncertainties, trend changes, and potential new regulations using expert analytics, forecasting, and presentation skills. These issues should be identified by them using routine health checks and through financial and economic evaluations of your business compared to industry benchmarks. They will aid in your preparation for them after they have been discovered by using accurate financial predictions, clever solutions, growth management tools, and predictive performance reporting.
The availability of online accountants has rendered choosing local accounting companies redundant, and the arrival of cloud accounting software has made the entire process of staying ahead of trends much easier. Accounting software that is “cloud-based” can be accessed from anywhere at any time, regardless of the time or place. It is hosted online. Our online accounting gurus have put together a guide that can help you choose the best accounting software for you in order to assist you.
6. Increasing cost effectiveness
A firm can expand tremendously with even simple tasks like controlling cash flow or cutting costs. An expert accountant can give you a financial map that will show you which expenses may be improved, which contracts are overpriced, and which costs have better alternatives on the market. This financial map will help you determine which costs to keep and which to reduce.
Tax deductions are another way to reduce costs. These deductions should be made properly through creative tax planning with the assistance of a qualified tax accountant to help prevent pricy and trying examinations. Tax literacy is essential, and failing to file taxes on time can land business owners in hot water with the law. When an owner is considering selling the company, a cost-cutting exercise can be crucial since it will benefit the bottom line. An increase in business value may result from higher business earnings. If you choose to sell or franchise your firm, an accountant will be crucial. They’ll make sure you’re selling your company in a tax-efficient manner.
7. To facilitate effective payroll
Businesses that have employees must efficiently manage payroll while adhering to payroll laws. Payroll errors can lead to penalties, disgruntled workers, and astronomical back taxes. Compliance with payroll laws is essential to managing a firm. Employing a competent payroll specialist or accounting business with accountants knowledgeable in payroll services can assist you submit RTI and create payroll records for your employees as well as records to submit to the Thai Revenue Department. It is advised to obtain assistance from a knowledgeable payroll accountant if you have questions regarding how the payroll procedure operates.
8. To assist in assessing corporate performance
The failure or success of a firm may often be predicted by evaluating performance against results like clients gained, revenue increased, complaints received, invoices written down, etc. Performance assessment is virtually always ignored by enterprises. Because they don’t monitor their primary goals and how the company is doing in relation to them, over 90% of startups fail. To help a business understand how its actual performance compares to the goals it set for itself, an accountant can assist in the development of performance reviews. These assessments enable a business to comprehend its actual performance in terms of the metrics it regards as crucial for long-term expansion and sustainability.
9. To assist with services for a virtual CFO
You should consider virtual CFO services if your company is large enough to require the experience of a CFO but not large enough to hire one full-time. This gives you access to a CFO’s knowledge at your fingertips for a price that fits your budget.
A competent CFO will assist you in establishing efficient financial controls, a management accounting process, managing investor relations, reviewing business plans, offering objective financial and business advice, establishing efficient budgeting and forecasting procedures, aiding in strategic planning, cash management, and assisting in establishing efficient reporting for the company.
There is no question that an accountant can assist you in a number of ways to enhance the worth of your company. In order to help your business succeed, grow quickly, and sustain itself, hire a knowledgeable accountant in Pattaya.
We are Supreme Life Accounting your neighborhood accounting firm, the online accountants, and the business consultants you need. We are payroll experts and Accountants in Pattaya to help with all of your business needs, including accounting, tax, payroll, VAT, business advisory, and business growth, are covered by our services.
