Running a small business is no easy feat. You may not own an entire corporation, but that does not invalidate your struggles as a small business owner, especially when managing your finances.
For instance, you run a furnace repair in Vaughan or furnace repair in Winnipeg. You may not necessarily have major financial matters to keep track of consistently, but this does not mean you cannot benefit from an accountant’s guidance.
Whether you need tax advice in Malta or want to make informed financial decisions for your small business constantly, you should read on to know 5 of the incredible ways accountants can help you make smarter decisions.
1. They can help you manage your debts.
Borrowing money can be easy for some small business owners, but paying it off is not and taking in more debt is not ideal either, especially since the economy is still recovering from the impact of the COVID-19 pandemic. In fact, a report by Statistics Canada stated that 26% of businesses with 1 to 19 employees would not be able to take on more debt in the future.
But despite such reality, an accountant can help you manage your debt by keeping your accounts payable and receivable under control. Accountants can do wonders as they can create strategies, such as the debt snowball method, to help you slowly but surely pay off your debts.
2. They are great at cash flow projections.
Essentially, a cash flow projection is a forecast of money coming into and out of your business.
Nothing beats having a healthy cash flow when running a small business. If you want to determine whether you will have a healthy cash flow or not based on the performance of your business, trust your accountant to help you with that. This is because they are great at creating and maintaining cash flow projections.
Once you have an accountant on board, they will guide you on when and how the money would enter. You can also anticipate potential cash gaps and avoid missed payments with their projections.
3. They have reliable financial advice.
When running a small business, do not just take any financial advice from anybody. Trust only the advice from an accountant who is knowledgeable in business finances and aware of where your business stands and how it’s currently performing.
Every small move is a big risk when it comes to small businesses. The COVID-19 pandemic has negatively impacted small businesses in Canada, as demonstrated by the fact that small businesses were more uncertain about their future.
So, before taking a leap, such as starting a new product line or marketing campaign, make sure you consult with your accountant first to see if it’s worth a shot or not.
4. They see things on paper that might be invisible to you.
You will either become too reckless or too careful if you are thinking of your small business’ survival in the cutthroat industry it belongs.
If you are one of the former, you need an accountant who can give you some advice or two before you sign any agreement that might have accounting implications that are not obvious to you.
Even if you have thoroughly understood the contents of any agreement, it remains wise to let your accountant go through first to double-check on things, such as tax consequences. With their help, you can prevent irreversible small and large financial mistakes.
5. They can map out how your business can grow.
Of course, accountants are no superheroes—they are merely doing their job. But if they fulfil their role dutifully, they can help you determine what’s worth taking a risk for your small business’ growth and what is not.
An accountant’s job lets you make informed and wise financial decisions for your small business. You can keep track and control your assets, liabilities, income, cash flow, and your business’s overall financial performance through accounting. In addition, they can help you with goal setting and tools to measure your progress.
Owning and running a small business may not be an easy feat, but having a reliable and incredible accountant on your side will surely make the entire load easy to carry.