Business accountants are a real necessity if you are serious about growing your business to the next level. So often new business owners cut corners when it comes to Accountancy services. They often have a misguided belief that they will engage the services of a small business accountant only when they really need it. In other words when their business has grown to the point that it is totally disorganised or they can’t cope. Sound familiar?
The opposite is actually the fact. To help a business grow, an accountant and his or her advice can be invaluable, especially when it comes to the challenging subject of cash flow. In other words having enough money in your business bank account to pay for the things you need and on time.
It is ironic that a new business thinks that their first outcome is to make a profit. Now that would be fantastic and yet the reality is cash flow and, a positive one at that should be the objective. Many new businesses are totally unaware of what it takes to turn a profit in the first year.
Appreciating the ups and downs of many factors takes knowledge e.g. customer billing cycles, rent, rates, new product promotion, online and offline marketing. The list is endless. With many costs needing to be factored in. Some of which new business owners forget about e.g. have you got liability insurance? A small business accountant though can make a huge difference to the bank balance by actually helping new businesses manage their cash flow. Many have their own sophisticated systems and software that can predict a business’s cash flow 1, 3 and even 5 years into the future.
One key thing is having this information helps a new business owner plan accordingly. The data is invaluable and is often the starting point to obtaining business funding.
Go along to a bank with a cash flow projection and a simple business plan and you might be surprised at the response you get. Banks and funding bodies no matter what the press says are willing to invest in small business operations.
If they demonstrate that they have put some thought and planning into their business. Having a small business accountant can help this happen.
