Did you know that 82% of startups fail because they lack proper accounting and bookkeeping skills? Some startups may have too much focus on the business idea itself and can miss out on important aspects of finance. If left too late, it can cause issues with finance stability and accounting processes like reconciliation will have to be applied.
Accountants are the financial eyes overlooking the business’ transactions. It is crucial to have an accounts team on board, whether in house or external.
Why are they essential? Let’s have a look at some of the reasons below.
- The financial stability of your business
A successful business is necessarily not the one that records high sales and returns. But it’s a business whose finances are in order. Accountants (as the name hints) account for every penny used in the business.
You can create forecasts for future sales and the returns you expect. Therefore, making decisions affecting the business is easy, simple, and straightforward.
When your finances are stable, you are at liberty of offering more discounts to your clients to maintain client relationships. Also, you won’t cut costs or be forced to fire employees because your finances are in disarray.
- Strategic marketing
An accountant and marketer work hand in hand since the two professions are related. An accountant will provide the marketing department with financial records that affect their operations.
With the financial records, your business knows the time to launch an intensive marketing campaign to keep on par with the business’ expenses and revenues needed.
- Minimizing tax bill
As an elite entrepreneur, you are on top of your game when tax season approaches. But how sure are you that you are following taxation rules and regulations.
Let’s face it, you have a lot to do, and you might miss out on something that might result in hefty tax bills.
This is what an accountant will bring to the table. They’ll comb through your finances and figure out if you are making use of tax reliefs and allowances that you might have overlooked.
- Pivoting through changes
Your business will go through challenges from time to time. Others may be random, but others planned, for example, when the business expands, you’ll have to hire new employees. Expanding the business, you are inviting another partner or opening another branch.
Whenever such scenarios occur, they hit hard on your finances. It would help if you had financial advice and support to keep you moving. Without it, you may have obstacles and end up with more problems than solutions.
- Advises on how to raise your finance
Sometimes your business may register slow sales that keep its existence in jeopardy. A good accountant keeps an eye on the bookkeeping, also looking for options to help the business flourish financially, even by saving costs in different departments to allow for more budgets elsewhere.
They can steer the business in the right direction to look for finances without putting the company at more risks. For instance, they can offer to buy shares, give you advice on financial institutions to approach for a loan, or help you sell the unwanted stuff in the business. They are also looking at the best bank accounts available to benefit the company.
If you don’t want to choose an accountant to work with, you’ll have an influx of financial tasks that may soon overwhelm you. It’s not a must you have an in-house accountant; you can still consult accounting professionals like Howlader & Co.