What an Accountant Will Do for Your Small Business—Our Guide
Updated: May 24, 2021
If you’re running a small business, keeping up with all the numbers can be overwhelming. As your business grows in the following months and years, it becomes crucial for you to handle your budget and cash flow all the more. This also becomes more and more difficult, and the stakes can get pretty high. Soon enough, you’ll find that you need to hire an accountant to be able to keep up!
Accountants are great assets for brands and businesses in any industry. They have professional experience and years of knowledge to help you interpret all your financial data. When you have all the necessary data on hand, you will make better, more informed decisions that will ultimately help your business grow.
The primary duties of a business accountant include:
1. Managing Financial Data
All businesses, no matter how small, should manage every bit of their financial data. If you’re a micro-business that’s just starting, you may think an optimised Excel file should get you through. But what happens once your business starts to grow? When you sell more products and hire more people, you will not be able to manage all that data on your own. It’s taxing work, and it’s not as simple as manual data entry!
Accountants are responsible for recording, updating, and continuously managing all your financial information. They will know what accounting software system your business needs to run smoothly. If all your financial data is in order, you will have no trouble reporting them to your co-owners, investors, and your government.
2. Creating Financial Reports
Along with financial data management, accountants also regularly generate official financial reports. Your cash flow statement and profit and loss report are essential documents that show your business’s overall health.
Your major business decisions will centre on what these documents say—which is why you need a good, reliable accountant to provide them for you.
3. Conducting Financial Analysis
Aside from the numbers they crunch and documents they generate, your accountant is a vital intellectual resource for your business. They have highly specialised insight into the current market, so they make for valuable consultants if you find yourself at a crossroads in your decision-making!
An accountant can help you with your day-to-day expenditures—but if you need to restructure your spending in the next year, or if you are thinking of ways to expand your business, your accountant can also help you with that. You can go over the numbers with them to visualise your future more concretely to help you reach your goals more decisively.
4. Handling Tax Obligations
Tax season is one of the most stressful times for small business owners. Filing taxes can be complicated, especially if you aren’t familiar with the regulations. Proper accounting throughout the year will help make the process go smoothly, and an experienced professional will be able to guide you every step of the way.
Your accountant will also be able to help you with any other regulatory compliances you may have in your state, such as income reporting and mandatory audits.
As your small business grows, your time and concentration will inevitably shift from day-to-day details to overseeing your business processes. Your accountant will be your right-hand man when it comes to managing the nitty-gritty details of your finances and making the best possible decisions to keep your business successful.
Are you looking for a small business accountant on the Gold Coast? New Wave Accounting is here for you! We work with business owners to empower, excite, and build confidence in your figures using our innovative accounting strategies. Contact us today to find out more!