How Does Hiring an Accountant Promote Asset Protection?
Just because your business is running 24/7 doesn’t mean it’s optimising its cash flow properly. Even without downtime, your business could be losing tens of thousands of dollars every year without the right asset protection measures in place. This is why it’s vital to hire an accountant to protect your business’s assets.
The Importance of Asset Protection
Establishments from every walk of life had to deal with the repercussions of COVID-19 last year. Even today, businesses are at risk of pausing operations or closing up shop to avoid suffering more unnecessary losses. Assets such as income, investments, and other forms of capital are always in danger during these difficult times. Thankfully, a business accountant can serve as your first line of defence against financial difficulties.
In this article, we’ll share four ways an accountant can improve your business’s asset protection.
1. Clarifying Your Assets
It’s common for businesses to think of their revenue streams as their primary source of income. However, businesses are more than just the exchange of selling products for profit. Business owners need to hold different forms of assets to secure their financials in the event of an economic crisis. This includes ownership of properties, valuable personal items, and even precious jewellery or artwork.
An accountant can clarify your assets to give you a good estimate of just how much your net worth is. They will value your assets, from personal to business belongings, to identify the risk factors you should consider with every business move.
2. Receiving Protection through Tax Deductions
Besides accounting all your assets in order, a business accountant will be in charge of minimising your losses. They can do this by determining which expenses are eligible for yearly tax deductions. For example, they will determine which purchases will have a significant return on interest. They’ll be responsible for filing the right paperwork to reduce your yearly overhead costs through these claims.
3. Securing Insurance for Assets
Your assets deserve more than recognition in your books; they also need to receive proper protection against certain scenarios. For example, compulsory third-party motor vehicle insurance is a great way to minimise your risk of expensive repairs during a car collision accident. Besides the tools you need for your business, you can protect your business property if you’re in the hospitality or restaurant industry.
Your business accountant can help you find the right premiums that fit your business’s needs. With numerous policy providers in the market, a financing expert will be your guide to choosing the proper insurance premium.
4. Drafting Your Will
Preparing for your death may seem like a grim mindset, but it’s a reality that affects all business owners. Without the right will to cover your assets after your passing, you’ll likely lose them all without passing them to the right beneficiaries. Thankfully, an accountant can keep clear records of your assets and help you secure their future as they work with your lawyer.
Preparing for times of uncertainty is a much greater concern for business owners now more than ever. For this reason, you should always have enough protection for your assets in case you need to make necessary adjustments. The good news is that you don’t have to deal with these financial dilemmas by yourself.
If you're looking for skilled accountants in Gold Coast to optimise your business, you're in the right place. At New Wave Accounting, we offer top-notch bookkeeping services and innovative accounting solutions. Contact us to see how our accounting experts can protect your assets!!