5 Reasons Why Every business Needs an Accounting Professional that Specialises in Growth
A good accountant can help your small business succeed by providing insights into your company's general financial health. It can also provide a detailed report of your cash flow, showcasing development potential, and keeping you organized and accurate while submitting your taxes.
1. Improve Your Cash Flow
The thing that keeps your small business operating is cash. You won't be able to make critical decisions to run or grow your company if you don't have effective cash flow control. Cash flow management is critical for your business; without enough cash, even the most prosperous business will soon fail.
Hiring a skilled accountant will ensure that you have adequate credit control and cash management practices in place, ensuring that you have access to all accessible funds and information. Effective cash management refers to how a company manages its operations, financial activities, and financial investments to keep its cash flow positive.
2. Manage Growth Sustainability
A growing small business has various needs, including managing finance requirements, employing the right personnel, controlling cash flow, and developing customer interactions. An accountant will assist you in:
- managing operations by suggesting process improvements
- taking over financial and tax obligations
- introducing you to tools that will save you time and money
3. Assist in Payroll Processing
Payroll compliance is critical to a company's success. Payroll must be managed efficiently and per payroll requirements in businesses with employees. Payroll errors can result in fines, disgruntled employees, and hefty back-tax payments.
You should hire a professional payroll company or an accounting business with accountants proficient with payroll services if you want to do payroll correctly.
4. Measure Business performance
Key Performance Indicators (KPIs) are elements of your plan that express what you want to achieve and when. Typically, you have 5-7 KPIs to manage and track the progress of your plan.
Examples of Financial KPIs:
- 1. Revenue Increase
- 2. Gross Profit Margin
- 3. Net Profit Margin
- 4. Inventory Turnover
- 5. EBITDA
These can be crucial in determining whether a small business will succeed or fail.
Most small businesses fail because they don't keep track of their primary objectives and how well they are executing against them. An accountant can assist in developing performance evaluations to help a business understand its actual performance concerning the goals it established for itself.
5. Helps You Handle Growth
As a small business owner, you most likely want to focus on growth for your company in a sustainable manner. By hiring an accountant, you'll have someone on hand to assist you with growth transitions like recruiting new personnel or relocating.
Your accountant will handle all the small details of your small business's expansion, such as payroll, employee tax management, property taxes, utilities, and more. It frees up a significant amount of time for you to focus on your business.
Hiring a part-time CFO provides you with the expertise of a professional who can assist you in your small business's growth.
A professional CFO is effective in helping you control your finances with a strategic plan, setting up effective reporting for your small business.