Happy International Accounting Day to you and your loved ones, dependants, and negatively geared assets!
We’d like to celebrate with a cake (yes, it’s deducible). But first, we’ve calculated (see what we did there?!) the top five reasons to love your accountant.
- They know which tax deductions you’re eligible to claim
Knowing what you can claim as a deduction, then claiming them, can make a huge difference for a small business. The tax laws in Australia allow for deductions on any number of things, essentially if they’re associated with cost of running your business.
From asset depreciation to stationery, charitable deductions, utility bills, internet access and everything in between. Your accountant will ensure your business claims all the deduction for which it is eligible, which can really add up over time.
- They know how to help you save on costs
As a small business owner, it would not be uncommon for you to feel overwhelmed by the sheer volume of things you need to do in a day, week, or month. If cost-cutting or improving cash flow are among the list, a good accountant give you the kind of advice you’ll need for the best ways to make this happen, and with no ‘skin in the game’. They’re better equipped to offer the best kinds of advice that will untie the administrative or financial knots small businesses sometimes find themselves in.
- They can help keep your business compliant
The dreaded audit. The idea is enough to send chills down your spine, but like most conditions, prevention is generally better than a cure. A good accountant will be there to help you, through timely advice and considered guidance, and assist in keeping your business compliant should it be audited. Businesses are audited for several reasons, from their having made too many errors in their paperwork, to claiming deductions that aren’t theirs to make. Your accountant is like a dentist – letting you know in advance the best ways to avoid the kind of stresses that’ll cause you pain and cost in the long run.
- They can make informed, real-time decisions
Business owners will often want to be able to see into the future to safeguard against making large purchases or bolstering their employee numbers. An accountant as financial advisor is well place to help you budget and monitor cash flow to better navigate obstacles in real time. With a collaborative approach, you and your accountant can make better decisions based on data and their understanding of projected costs, income and expenses.
- They know what they’re doing!
With that knowledge, your accountant can better inform small business owners what the state of play is with their finances. Without that knowledge, you can’t fully know when it’s the most financially prudent time to purchase more inventory, or how much money you’ll need (or have) to properly pay your staff, or even how much cash your business has. By using accountants, business owners are better empowered to make healthy decisions for their businesses.
There are many more reasons to love your accountant. We’re a good bunch! We do the heavy financial lifting mostly because we love it, but also because we’re good at it.
So, let’s celebrate International Accounting Day together on 10 November, and then we’ll all get back to work.