Roughly 60% of small businesses close their doors within the first three years of starting. While there are several reasons for business failure, many small businesses simply aren’t making the wisest financial decisions. A lot of the time it is because business owners do not know that there is an issue at all. This article talks about the value of reliable advisory.
Unfortunately most small firms can’t afford an in-house finance head to help navigate the dark art of accounting and finance. Nor do they want to. They’d rather be running the business, talking to customers and drumming up that next sale. They need the help of an accounting or bookkeeper professional more than ever. Interestingly, the vast majority of small businesses are unaware that their accountant or bookkeeper can help beyond compliance and tax.
Are you getting the most out of your Gold Coast Accountant or Bookkeeper?
Small businesses now have so much choice that ordinary services like compliance, tax preparation and basic bookkeeping are becoming commoditised.
Cloud technology is also reducing the value of basic accounting services. Accountants and Bookkeepers using cloud-based systems are more efficient and productive therefore should be focusing towards value added services such as management reports, cash flows and budgeting. Basically, you need them to show you how you business is and will be tracking on a real time basis. This will not only allow your business to stay on top of compliance (BAS, Tax, Wages) but also promote growth, both long term and the short term.
If we spoke about this a few years ago the cost of something like this would be beyond the means of a small business. These days, accompanied with cloud solutions, your business can engage a Virtual CFO who can assist you with regular business advisory at a fraction of the price of traditional CFO’s.
What is a Virtual CFO and Why do I need one?
A Virtual CFO is essentially a financial advisor. Someone that becomes a trusted source for a financial perspective for small businesses. They are engaged at a fraction of the cost of a full-time CFO. They prepare regular reports, budgeting and cash flow analysis to pinpoint the problem areas in your business and allow you to implement changes to help your business grow.
We found that businesses that engage in a business advisor or Virtual CFO have been more successful. Think of this as a value investment rather than another cost.
Making the most of the Cloud
Everyone is talking about the Cloud, and they have every reason to do so. Cloud technology such as Quickbooks Online opens up new and profitable opportunities for small businesses. Communication is getting easier as mobile devices become more popular. These are leading to big changes. For example, it’s now possible to see your cashflow in real-time, using cloud accounting software. Gone are the ages where you would have to wait until the end of the year to see how your business is tracking.
Moving to the cloud may sound daunting, but it can lead to a big increase in efficiency, productivity and profit. Cloud technology, coupled with valuable business advisory, helps you stand out from the competition.
So it’s not only a good idea to use cloud technology – it’s essential. Businesses that don’t adapt will face decreasing revenue as they face other businesses that can innovate and are more efficient.
How New Wave Can help you?
The team at New Wave not only provide cloud bookkeeping services, but also offer a cost effective Virtual CFO solutions. We have partnered with cloud based solutions such as Xero and Quickbooks Online to provide our clients with an insight on their business on a real time basis. Whether you starting out and only require quarterly maintenance/reporting or are ready for some serious growth we have a plan that will suit you. If you are sick of not knowing how your business is progressing or how you can fix it, call us today on 1300 915 221 or email email@example.com . We are local Small Business Accountants on the Gold Coast.