Businesses of all sizes should always have an accountant to handle both day to day activities, and monitor growth of the company over time. With the advent of various, albeit powerful, software packages such as QuickBooks, many businesses do not feel the need to hire an accountant at all, and choose to handle the duties themselves. Without the proper training and experience, this is a recipe for disaster which could’ve been easily avoided. When a business chooses to not hire an accountant, then the risk is entirely in their hands, and ultimately most businesses understand that a high quality accountant is an investment.
An accountant offers a combination of knowledge and insight to any business that can end up proving invaluable. During the early phases of a businesss growth, a financial advisor is an integral part in assessing the business model, and maximising initial revenue. Setting up a business is no mean feat, and is the cause of confusion and stress for many budding entrepreneurs, while those with an accountant always have a clear picture of what their targets are; a crucial step which is difficult for businesses to analyse themselves on. Even the basic steps can be handled by your accountant, from registering a company or property to the appropriate authorities, to invoicing and details margins. Try to think of hiring an accountant as a tool to be utilized; the quality of your accountant can make your work go incredibly smoothly.
With the day-to-day operations of any business, it is difficult for everyone to keep track of their progress and needs without an accountant. By having a clear picture of the company’s past, it is much easier to see where any problems lie, and compensate for them. Though you as a business owner may not know how much profitability is produced by stock or services, an accountant can easily show you this, making future planning much easier on the whole company. A great accountant will be able to forecast the future of your business for you, freeing you and your staff up to do the day to day activities, without any uncertainty.
The vast training an accountant receives to become qualified never goes to waste in any business, with them often able to provide valuable insight into future opportunities. One such facet that most professionals will be able to relate to is the profitability of specific services. For example, say a company has a diverse portfolio of products; each of these products will have a different cost and a different value. In this example, though the company may sell X thousand units of a product, the profit margin may be slim (10-20%), and a less popular product which sells X hundred units, may be a much more profitable place to invest marketing into. This type of in depth and complex analysis of a company’s sales figures can only be carried out by someone with accounting knowledge.
The final key area an accountant proves invaluable is in times of hardship for a business. Though these times are crippling to any company, this effect can be easily minimized through an accountant. Identifying problems with the business model, market changes, and even sourcing new potential business can save a company, and is an investment well worth its weight in any situation. If the worst does happen, and your business is suffering, a financial adviser is a commodity to be kept, as they can organise payment plans with creditors, and even negotiate on your behalf for better rates.