Best Ways an Accountant Can Help Increase Your Profits

The prime objective of a business is to maximise its profits with optimum utilisation of its resources. A business owner appoints a professional accountant to address the financial data and reduce the stress of handling accounts.

Many small business owners believe that accountant only prepares and files their ISA, BAS, and annual tax returns. However, an experienced and qualified business accountant can do so much more. And this is precisely why small businesses must remain alert at all times; being a small business frequently implies that you lack the backup funds to support yourself in times of crisis. You should always be thinking about how to make your small business more profitable, not just when you’re at your wits’ end.

Accountants are the trusted advisors and the financial world’s foundation ultimately. Your accountant should be the first person you contact if you want to grow any aspect of your business, particularly your profit.

Often, an accounting firm Perth will see opportunities to improve the bottom line you may overlook because you are in the trenches every day fighting for profit and growth. It can help business owners improve their profits previously, and it’s usually just a matter of focusing on a few prime areas in any business.

An accountant can also act as your business financial advisor. Your accountant can be a trusted advisor in addition to filing your BAS statements and tax returns, providing valuable advice across business functions to help improve your profit, cut costs, and streamline your business. The accountant should be available to you all year to provide regular advice.
They can advise you on filing tax returns and claiming deductions, presenting your financial statement so the readers can perceive the effect, and controlling your cash flow in such a way as to maximise your profitability.

Important Ways the accountant help to Grow your business

Following are the ways used by an accountant which can assist you in maximising your profits –

1. Examine your spending

Your accountant can examine all your company’s running costs to identify excessive relative to industry benchmarks. You can make money savings that will result in higher profits for you by careful examination of your running expenses.

2. Bargaining with vendors

Your accountant can examine your suppliers and material sources to determine whether you can get a better price on the materials you buy. Additionally, your accountant may participate directly in the talks on your behalf.

3. Minimise bad debts

Your accountant can set up a successful debt collection procedure for your company to prevent losses from bad debts. Bad debts can have a direct impact on Your hard-earned revenues.

Your accountant can review your current business terms and policies for collecting debt and suggest changes. They may assist you in putting into practice superior trade agreements and debt collection procedures that will enhance cash flow and increase business earnings.

4. Get rid of any unsuccessful goods/services

Reviewing your company’s underperforming product and service lines is something your accountant can do. Your accountant can examine the margin percentages for all your goods and services and decide which ones you should discontinue because they aren’t doing well financially.

5. Restructure financing

Your accountant can investigate finance restructuring to assist you in saving interest on business loans. There are less expensive alternatives available also. You can save interest by refinancing existing business debt, which can increase your profit.

6. Increase pricing

Your accountant can help you maximise your current price levels by reviewing your pricing system across all products and services and determining whether your prices are competitive. Perhaps a price increase is long overdue, and raising your prices will significantly increase your profit.

7. Examine labour costs

Your accountant can also tell you whether there is a more efficient way to use your labour. Profits will increase if you save money on wages and ongoing labour costs, such as work cover and superannuation.

8. Monitor advertising expenditures

Your accountant can assist you in calculating the rate of return on every dollar spent on advertising and marketing to determine whether it generates enough sales and additional profit for the company. Many entrepreneurs are unable to calculate the return on their marketing and advertising investments. They have no idea what the rate of return is or whether it is worthwhile to invest the money.

9. Make a profit plan

Your accountant can help you create a business plan for future profit growth. The profit growth does not happen by accident; it must be planned. A flexible business plan that establishes key objectives and outlines a plan of action will help your company’s profitability.

10. Recognise valuable customers

Your accountant can assist you in determining which customers are the most valuable by analysing your entire customer database and calculating each customer’s profitability based on how much margin they contribute to your business. Even when the smallest and simplest customers provide you with fewer headaches and the most margin and profit, you may overlook them.

Also Read: 10 New Business Ideas For Startups

What are the various services provided by an accounting firm?

1. Bookkeeping services

An accounting firm can assist you with providing bookkeeping services Perth. Having a professional to handle your bookkeeping ensures that your company is working with accurate data to inform its decisions. You may find it difficult to make informed financial and management decisions if your bookkeeping is not reliable and efficient. Without this, your year-end accounting work may take longer to complete, incurring a crucial cost to the company. Furthermore, untrustworthy financial records can be a barrier when applying for financing or selling your business.

An accountant can be a bookkeeper who keeps accurate and ‘clean’ financial records to help you understand how your business is doing, allowing you to make informed financial decisions and save time and money over the long haul.

2. Taxation services

Optimising your tax management while adhering to various government regulations can be a critical process, especially when getting it wrong can result in a hefty bill or an audit by the ATO. Your accountant can:

• Assist you with tax structuring; 
• Bring order to your tax obligations; and 
• Cleverly manage them on an ongoing basis to provide you with the best possible outcome.

3. Consultation services

An accountant can help you plan your business’s growth and development by providing hands-on support and assistance with specific projects that can make a difference in the size and performance of your business.

Your accountant’s business advisory services may be what you need to take your company to the next level. Working closely with your accountant to interpret and communicate your financial position and other important information will assist you in making strategic decisions to achieve the desired outcome for your business. Having a professional who you can rely on to set goals and monitor your progress will not only help you save money but will also help you maximize your profits.

4. Financial planning and management services

Accountants can run different scenarios and change variables by creating financial models. Being able to project these numbers means that accountants can provide your company with a clear path of the potential future ahead based on statistics and data. Financial modeling is critical for understanding the risks and rewards of any significant project you are considering and your ability to finance that project.

If you want to manage your self-managed super funds Perth, then professional accountants in Australia will provide you with highly experienced quality services. An accountant must first obtain a financial license and then provide the client with a Statement of Advice on establishing an SMSF to set up an SMSF.

Conclusion

Generally, Business owners are not aware of the roles of accountants in their organisations, believing that all they provide is bookkeeping and tax filing services. On the other hand, Accountants can have a variety of positive influences on the decisions as a business to help you save money and maximise your profitability.

You are probably working too hard as a business owner because everything depends on you. Your accountant may help to achieve the quality of life you desire by bringing balance to your life. You may want to sell your company, retire as a silent partner, or pass it down to your children. Your accountant should be a trusted advisor who is well-versed in tax avoidance strategies, tax compliance, due diligence, business valuation, and estate planning.

If you are starting a business or changing your current structure, accountants can advise you on the best tax structure. The business owners must file taxes at least once a quarter and once a year. And a tax return accountant in Australia can advise you on how frequently and precisely to file them.
To improve your bottom line, seek the assistance of your accountant.

You may be familiar with your company’s internal operations, but your accountant has years of experience assisting other clients with their profitability. Use their knowledge and experience, and your profits will skyrocket.