When you start off on your own venture, there are a lot of aspects you might want to tackle on your own. You want to be in control of all facets initially and, of course, to save on costs. However, when it comes to the complex function of accounting, this is an area perhaps best left to a professional, as even the slightest wrong foot can have big consequences.
Your business will also hopefully grow, and as you focus your energy and resources on running a successful business, it might become impractical to keep your focus on areas that do not fall within your expertise. Leave the numbers to the expert and focus on what you are good at.
How Will a Tax Accountant Make a Difference in My Small Business?
As business structures have rapidly evolved in the last few years, so have their priorities. Tax accountant roles have given way to include a lot more than just balancing the books. They can also provide a range of financial advisory services to help your business grow and steer you in the right direction. While running your day-t0-day operations, having someone keep track of your financial situation, cash flow and growth at any given point is essential.
Below are just a few ways in which a small business accountant can make a difference:
- Forecasting growth, budgeting for this and ensuring you take the right steps to have the necessary cash flow to achieve these margins.
- An accountant can help you set up a payroll system or take care of this on your behalf. Payroll is another complicated area where you can’t afford to make mistakes.
- A small business accountant will ensure you file your returns correctly to maximise returns and minimise deductions. They will also take into account what business structure you fall under, as sole proprietorships, for example, have different tax obligations than Pty Ltd.
- In modern-day business operations, most businesses rely on state-of-the-art accounting software. If you wish to keep some control over your finances, your small business accountant can guide you in finding and setting up the best accounting software.
How Will I Know If an Accountant Is Right For My Small Business?
Some important factors to consider or questions to ask:
- First, have clarity on what you need. Also, consider the industry your business is in. Based on these, find an accountant who has experience in those fields.
- Your accountant should be one of the most trustworthy assets of your business. This person is in charge of your financial situation, and you need to be able to trust their advice. A good place to start is to ask friends or acquaintances for references. Speak to individuals in the same industry as you, and do your research online. Website testimonials and online reviews are good indicators of service performance.
- Make sure you are aware of all fees, so there are no hidden costs or nasty surprises down the road. Some accountants have entry-level package services, which can be upgraded over time as your business grows or your needs for their services increase.
- Rely on their expertise. A good accountant will be able to look at your business setup, pull reports and scrutinise the appropriate financial documents to advise on which areas of your business you should focus on or where you can make changes or improvements.
- Ensure the accountant knows the specific laws and regulations pertaining to your small business. You can then determine if they are registered on the TPB (Tax Practitioners Board). This is a sign of a tax agent’s expertise.
As a small business owner in Perth, you can stay ahead from the get-go by hiring a small business accountant to keep you organised and tax compliant. Perth Tax People offer comprehensive tax accounting services tailored specifically for small businesses.
We are a small group of professional accountants dedicated to helping your business grow. Contact us to learn more or schedule a consultation.