How An Accountant Can Maximise Your Business Growth?

February 10, 2021    Accounting Services Perthwa

Hiring an accountant or investing in accounting services helps you make smarter decisions and track your finances. Accountants are the trust advisors of your firm who will help you grow in various aspects. Many small business owners are not aware of it, which is why they do not know whether to hire an accountant or not. From small to mid-sized businesses, an accountant plays a crucial role and can maximise your business growth. Here are some points to explain why you should hire them.

  • Forecasting to increase profits and sales

Irrespective of what business you have, growth in sales is the crucial aspect. Unplanned and unexpected growths are beneficial for the company, but forecasting your sales and profits will give you an idea of where you should stand. It will help you to ensure growth in inventory, infrastructure, customer service, account management procedures. An accountant can help your company to expand at an increasing pace.

  • Analysis of expenses

Profits not only depends on sales but also on expenditure. If you are earning enough profits but not reducing the unnecessary expenses, there will not be any change. An accountant will give you a picture of all the aspects and indicate to you which things need to be cut down. By analysing all such things, you can use the company’s funds in a better way. Expenses analysis is an on-going process and must be done every month. Therefore, if you hire accounting and tax consultants, you can have all the information.

  • Proper invoicing

Proper and accurate invoicing will help in building strong customer relationships. It indicates the exact date and amount that you should receive from the respective person. In a way, it will be easier for you to get payments on time. Also, it gives details of customers’ not paying on time as the accountant has all the updated details. It shows the names of customers’ who can clear their payments on time, helping you grow.

  • Pricing analysis

Irrespective of your company’s sales, an accountant can provide an estimate of correct pricing. Accurately listing the price of the products will increase sales. If your price is low compared to your competitors, but the quality is the same, the profits will increase. In case of stagnant sales, decreasing prices is a suitable way to increase profits.

  • Analysis of product and service

Is your business dealing with many services and products? Do you know what their purpose is? An accountant can tell you which service or product is doing better compared to others. As a result, you can consider expanding in that particular service. It allows you to identify profitable areas and eliminating services that may not be fruitful. In that way, you will have a better picture of where you should put in your efforts.

  • Analysing risks

If you plan to increase your business or hire a new employee, an accountant can direct you to what will be best. Before investing in a new venture, it is always recommended to hire an accountant. They can help your company to grow and accurately analysing the risks. Based on that, you should take decisions that will work in your favour.

  • Decreasing the bad debts

The accountant can structure an effective debt collection strategy, which will help to reduce the losses. Otherwise, the debts will keep on increasing, and you need to spend your hard-earned profits, improving the health of the business. The accounts can implement better debt collection policies, improving your cash flow.

  • Negotiating with suppliers

The accountants can give you a brief analysis of whether you are spending more on getting the products or is it fine? If it is more, they will inform you about the same, and you can negotiate with suppliers. In the case the suppliers do not agree, the accountants can represent you and crack the deal.

  • Reviewing labour costs

It is important to review the labour costs, employees’ salaries, etc. If you are paying your staff less and thinking that you are saving, it’s not good. Because they will leave your job to get a better package, and it can affect your business. While increasing profits, it is essential to take care of your staffs. An accountant will guide you to increase the salary so that they are happy. It motivates them to be more productive, which in turn will work in favour of your company.

  • Registering all the invoices on time

The tax consultant Perth knows how essential it is to register all the invoices from time to time. Otherwise, you might need to pay a higher tax amount, which will increase your expenses. But it can be decreased to a great extent by timely recording the necessary things. Additionally, some things, like the phone or utility bills can reduce tax payments. Therefore, a tax consultant has information on all such things, following which you should pay lower taxes.

  • Planning your profits

When an organisation starts earning profits, they do not plan appropriately. Due to that, the profits remain unutilised. But if you consider professionals, they can guide you in the right direction. It means you will know how to use the profits for the betterment of the business. At times, a piece of advice can bring in a lot of change, which is why the experts are essential.

  • Tracking the advertisement and marketing strategies

Marketing and advertisement strategies include a huge investment, so tracking is essential. An accountant will monitor the return on investment, which will help you know if you should change anything. You may not have a higher rate of return, but when you hire accountants, they can give you insights about it.

Look for the best

Many accountants are available, but you should always choose skilful and knowledgeable accountants. They have contributed many years in this field and can take your business to the next level. They are skilled and known for managing multiple businesses. In short, accountants are the best advisor for your business.

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