Accounting all year round

Posted on: 4 October 2021

The COVID-19 pandemic has significantly affected most small businesses. In a bid to cut operational costs, some business owners opt to forego essential services such as accounting. However, such measures will only work against the business and lead to losses. Below are a few compelling reasons why your small business requires the services of an accountant. Additionally, you will also learn how you can manage accounting costs amid the challenging business environment. 

Cost Cutting

Before the pandemic, your business could accommodate a lot of expenses since you made good sales. However, you may wish to cut on these expenses to keep the company afloat. An accountant is best suited to help you cut on these expenses. Ideally, the professional will audit your business operations to help you identify effective cost-cutting measures. For instance, the accountant can help you identify fuel wastage, improper use of electrical appliances and unjustifiable purchases. Besides, they could recommend actions such as moving into smaller premises if the location does not affect the operation of your business. Such measures will help you avoid drastic alternatives such as laying off your workforce. 

Preparation Of Financial Statements 

Without an accountant, business owners are taxed with preparing financial statements such as balance sheets, cash flow statements, income statements and notice to change in equity documents. Given that you do not have the skills to prepare these documents, you will spend many work hours or make mistakes when compiling the figures. This time could have been spent handling crucial business activities such as marketing and production. Your business accountant will prepare these documents and interpret the figures to ensure you understand your current financial position.  

Forecasting

After preparing the financial documents, the accountant will conduct assessments to help them predict the future of your business. For example, they can forecast the peak and low seasons. This information helps you make crucial business decisions. For instance, you could increase your business inventory and employees during the peak seasons. 

Taxation

Your business accountant will ensure that you fulfil your tax obligations. Besides, they will help you take advantage of government incentives meant to cushion small businesses impacted by the pandemic. For example, you could apply for JobMaker Hiring Credit, JobSaver payments, business grants, and financial support. The accountant will assess your operations and advise which form of support best suits your business.  

Contrary to popular belief, accountants do not charge a fortune. If you cannot afford a full-time accountant, you could opt to hire a part-time professional. Besides, some business accountants will offer online services to avoid the extra costs incurred in visiting your premises.