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Business Accounting

Business Accounting

When a Business Accountant can help you grow your business…It may be time to delegate

As a small business owner, you likely enjoy the benefit of having control over your work. You are able to design your own business strategy, set your own working hours, determine your finances, and regulate your workload. Mastering these things is wonderfully liberating, but sometimes it can prevent you from delegating tasks efficiently to aid the growth of your business.

You can risk burning out if you hesitate too much when deciding whether or not to obtain help in running things. Understandably, you may feel as though no one else could possibly know your business like you do, and that nobody could handle your operations like you can.

Being unable to delegate can leave you feeling stressed, diminishing the freedom that should come with owning your own business. Learn to let go and trust others to assist you in handling some aspects of your business, so that you can better spend your time looking after the rest.

Your business’s financial affairs are a good place to start. Choose an accountant that best suits the requirements of your business, and ensure that you trust them to handle your financial information. Handing over control of finances to a qualified and experienced expert will leave you with much more time to focus on your strengths as a business owner.

Often, successful business owners are also expert delegators who know when to accept help, and who to get help from. Learn from them and apply this mentality to your own business.

Dealing with the government
Government bureaucracy and paperwork can be one of the most daunting obstacles when starting a business. Tax filing is just one government requirement which an accountant can manage for you.
An accountant can ensure that you meet your obligations and continue to operate smoothly by:
• Completing and filing required compliance and legal documents for your business.
• Ensuring that your business is kept up to date with tax laws as they develop or change.
• Preparing annual accounts statements.
• Ensuring that your business’s status is updated in the government’s company register.
• Maintaining records of administrative personnel (such as directors).
• Organising and recording stock/share allocation, including in crucial situations such as a business partner leaving or joining.
• Handling your payroll and making sure that your staff’s tax payments are properly recorded.

A blunder when preparing tax documents could cost you a lot of money. A good accountant is incredibly unlikely to make any mistakes, and can probably suggest quite a few ways in which your business can free up money or begin to expand.

If you’re audited
It is statistically unlikely that your business will face a government audit due to the high number of small businesses compared to the relatively small number of auditors. But should it happen, an audit can be stressful, time-consuming, and expensive.

If you haven’t used an accountant’s services before, this would definitely be the time to start. An accountant can advise you on how the auditing process works, and how best to manage it. They can ensure that you comply with any recommendations made by the auditor, and that your business continues to comply with tax laws after the audit is complete – because the government is likely monitoring your business more closely now.

Some accountants offer audit insurance, which protects you from the extra fees you would have to pay your accountant in the event of an audit. Responding to a review, official enquiry, audit, or investigation will involve a considerable amount of work for your accountant, and you won’t have to pay them for this extra work if they offer audit insurance.

Some accounting software includes an ‘audit trial’ feature, which makes it easier for both the government and you to see what transactions have taken place, when, and who they were authorised by.

Applying for overdraft or a business loan
Lending to small businesses has dropped in most countries since the Global Financial Crisis in 2009. This means that it may be more difficult to obtain a loan, and you will require a stronger business case in order to do so.

Hiring an expert Melbourne business accountant will improve your chances of securing credit by demonstrating your commitment to the business. A business accountant will also be able to present useful and relevant information which supports your credit application. They can also respond to any questions or requests for information the lender might make in regard to expenses or revenue projections.

A good accountant will not only assist you in managing the application process, they will also help you decide which loan suits you. An accountant’s knowledge of finance can be of immense benefit when comparing lender interests rates and terms and conditions.

Contact the best in business accounting, Kingston & Knight Accountants, today and speak to one of our expert business accountants on (03) 9863 9779 or email us at admin@kingstonknight.com.au.

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Business Accountant Melbourne

Should I hire an accountant for my business?

If your business is growing, the answer is yes!

Businesses develop and grow at different rates, but often, this growth is not necessarily linear or steady. A big project or a new client might mean that your business needs to grow quicker than you had expected.
An accountant will be able to assist you the processes involved in growth transitions, such as securing more space for your operations or hiring employees. Accountants can manage financial details (property tax, payroll, employee tax, utility payments etc) on your behalf so that you are free to focus on the core operations of your business.
Cash flow, inventory management, pricing, and other financial variables can be analysed in detail by an accountant through the use of specialist software. They can then use this to give you, the business owner, insight into how best to grow and develop your business. An accountant can even assist you in determining the best time to introduce a new type of product or service.

Planning to take on a franchise?

Get an accountant’s advice

There are some sectors whether taking on a franchise is a relatively accessible, and therefore common, way to start a business. This eliminates some of the common risks associated with starting a business by ensuring that the product or service already has an established reputation and market value. On the downside, you have less commercial freedom this way – as well as increased overheads.

It can be difficult to determine whether or not a franchise is worth taking on, considering all the costs involved. An accountant can help with making this decision. They are able to review a franchise contract and form estimates on income and cash flow based on the information provided by the parent company.

At the end of the day, the decision comes down to you. But hiring an accountant can mean the difference between poor judgement and a well informed decision. If you’re planning on buying any business, you should get an accountant’s advice.

Someone seeking to own their own business may be able to buy one for themselves rather than starting one from scratch. This can remove some of the hard work, but you should always seek an accountant’s advice before committing to the purchase of an existing business. A business accountant can help you make the right decision by reviewing the business’s accounts in detail, and informing you if something looks problematic. For example, a business’s assets, including its equipment and other essential materials, may be leased and not fully owned. An accountant can check these details for you, as well as whether or not the business has any outstanding debt.

It may also be a good idea to consult a lawyer during this process. A lawyer will be able to work with your accountant to discover anything and everything you may need to know about the business you intend to purchase and operate. This will give you the peace of mind to make an informed decision and a sensible offer should you decide to buy.

An accountant’s advice is vital if you are planning to sell your business

As a business owner, it is unlikely that you wouldn’t have employed the services of an accountant at some point before deciding to sell. But if you have, you definitely should hire one before you sell.
A business accountant will be able to prepare your business’s financial records and produce vital documents such as a statement of accounts for you to show potential buyers. With the use of specialist software, an accountant can visualise complex financial information and create useful charts, graphs, and tables which can be used to demonstrate the strength and value of your business.

As part of the due diligence process when a business is being taken over, your accountant will be able to communicate with the buyer’s accountant to ensure that everything is in order.
All in all, an accountant’s services will ensure that you are able to get the most money you can when it’s time to sell the business. Depending on the structure of a sale, the amount of money left after tax can vary. For instance, monthly payments made over several years may be more tax-efficient than a lump sum. Every sale is different, and the services offered by an accountant will ensure that you get the best result when it’s time to sell your business.

Basically, an accountant can help you every step of the way.

At every stage of your business’s growth and development, and accountant can help to ensure things run as smoothly as possible from a financial standpoint. They are able to make your life easier by managing complicated financial matters so that you, as the business owner, can focus on other areas where your time can be better spent.

Contact Kingston & Knight today and speak to one of our expert business accountants on (03) 9863 9779 or email us at admin@kingstonknight.com.au.

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