Business accountants blog

Can an accountant add financial value to your small business?

Published On: July 27, 2023Categories: Accounting, Support

Small businesses are often competing with much larger and more established businesses. This can make small businesses more vulnerable to losing money as they don’t have the paramount staff or infrastructure like big businesses do.

This is why small businesses need to be careful with how they spend their money.

Small business accountants in Melbourne are trained and qualified individuals who handle all accounting aspects for a business and will advance your business to a higher tier.

They can give you or your bookkeeper advice on the best ways to handle your finances. They become an extension of your business, taking care of all essential financial and taxation tasks and aspects.

How does accounting add value to the business organisation?

You may consider yourself to be a good leader, a good manager, and a good boss, but perhaps accounting and tax is not your forte.

Maths and money are crucial parts of running any business, and understanding them is the first step in helping your business to survive.

Once you start crunching numbers and analysing your spendings, taxes, and financial lodgments, you might realise you need to tighten your budget in one division or that you need help lodging a report for another.

On top of this, business owners have so much to do all year, which is why outsourcing a business accountants in Melbourne to crunch your numbers for you can take off the stress.

This way, you can personally use time that would be spent on financial aspects on other tasks.

This will save you even more time because accountants do things quickly and more accurately.

What can an accountant do for a small business?

Bruce Edmunds can give you advice and can assist you with or physically do your:

BAS lodgments
IAS lodgments
ATO lodgments
Superannuation
Bookkeeping services
Financial statements
Financial reporting
Tax audits
Corporate tax returns
Individual tax returns for your employees
Batch statements
Budgeting

How can an accountant help with budgeting?

A business budget is a documentation describing how you have and how you are going to spend your businesses capital across all aspects throughout the month or year, including for:

Bills
Assets
Investments
Equipment
Loans
Contractors
Staff
Profit vs cash flow

In order to write up a budget, you need to compare how you will spend in the future, how you have spent in the past, and the revenue you have gained from that spending.

You need to maximise your input in areas where you’re getting large returns and you need to minimise your input in areas where you aren’t seeing as much return.

To do this precisely, you need to keep a good record of all the spendings and give them to an accountant to better forecast your business spendings for the future and to help you create a tailored, realistic budget.

Can an accountant help with a business plan?

A business plan is an extension of your business budget as it outlines your company’s strategy in the future in detail.

This can have different effects on each sector and each division. The manager for each division will either help in writing the business plan for their division or will receive a copy of it to know how to operate throughout the next year.

How can accounting increase profitability?

Hiring an accountant to walk you through business accounting in Melbourne will help you in the long run to save money and also make your business more profitable as they envision and comprehend things you might miss.

For example, say your small business has expanded a lot in the past year and the tax structure you have been using is an individual tax structure. After all, the business started with just you and two other employees working from home.

Personal accountants in Melbourne might recommend altering your tax structure to a company tax structure or a partnership tax structure depending on how your business operates.

This could save you money because each structure has its own conditions and benefits and the one that suits your business depends on many components.

Another common example of how accountants can increase profits is that they can help you correctly and legally fill out all your business tax return forms with all the eligible tax deductibles.

Overall, accountants help you to understand all your financial related components so that you can better understand how your business runs.