Regardless of your size, trade, or market... up-to-date, accurate and proactive accounting, tax management and bookkeeping practices are essential when it comes to business success.
Your financial systems need to be set up and managed in a way that makes sense for YOU as the business owner!
Because what good is it if only your accountant fully understands your numbers?
In order to run a truly ‘tight ship’ business operation... YOU need to have complete financial insight, transparency, and control!
And behind every highly successful trade business owner, there is a team of financial experts and administrators helping them to keep their finger on the financial pulse of their business - while they get on with the job of running the business.
A trustworthy team that they can rely on to ensure that things are being done the right way, that they’re compliant, and that they’re not going to land in hot water with the ATO.
Now, within this team, is an accountant…
And what’s interesting is that the role of an accountant is actually often overlooked.
Most trade business owners limit their accountant’s responsibilities to creating and submitting their accounts and tax returns, which don't get me wrong is obviously important...
But the right accountant can actually offer far more value than this!
They will help you comply with up-to-date regulations (that are often changing), save large amounts of money/increase profits and cash flow, reduce your administrative workload, allow you to make better real time decisions (necessary for any business owner serious about sticking around), and effectively plan ahead for the future.
So, the point of this article, is to outline 5 key things a winning accountant can help you with.
1. Make sure you’re paying your fair share in taxes, and not a penny more!
Just about every business owner wants to know how they can reduce their taxes…
This of course involves maximising deductions.
But here's the thing, more often than not, business owners leave it too late in the year to effectively mitigate their taxes, and all they can worry about is what could have been done, or what they can try NEXT YEAR.
So, it is always important to be proactive with your tax planning… and to start thinking about these things right now so that you can act accordingly.
The right accountant will work with you to identify these potential deductions throughout the year (rather than just during the End Of Financial Year) and advise you on how to make strategic decisions for your year-end deductions.
It’s incredibly common for trade business owners to forget to track and account for items like depreciation, out-of-pocket expenses, and home office equipment and spaces.
And this is where an accountant comes in.
2. Free you up to do what you do best
As a business owner, your time is invaluable because your hourly rate, is actually the hourly rate of the entire business.
And this means your time needs to be spent on YOUR high value tasks.
Marketing, sales, and LEADERSHIP.
NOT being bogged down in administration, bookkeeping and accounting!
Because while it’s critical that you have excellent bookkeeping and accounting, it’s even more critical that YOU’RE not doing it.
Once your business takes off, you’ll need all your time to run day-to-day operations, rather than be occupied with things like bookkeeping and accounting (which, mind you, is not your field of expertise).
And another important point to make is as the business finances become more complex, you’ll almost certainly need a specialist to take charge of them.
So, hiring an accountant will help you best manage your operations by recommending process improvements, take over your financial and tax obligations to keep you safe and compliant, and work with you to save a whole load of money and time!
3. Make better decisions
Successful business owners are ability to make key business decisions based off up to date and accurate real time data.
So, if this isn’t the case for you, then you’re driving your business with a blindfold on.
You MUST be able to understand the potential consequences and implications of you and your teams’ decisions before they’re made.
If you’re buying an office or warehouse, hiring more employees, looking to get more equipment, or take on a new large project and so on… you need to know how this will impact your business.
Note: Just as many businesses go under from over trading as they do under trading.
With a great accountant, your numbers should provide crystal clear visibility over your operation, which is going to allow you to make these kinds of decisions with absolute confidence.
4. Get your mind out of the day-to-day and plan for the future
Another reason why you need a winning accountant on your team, is because they’re able to help you best plan for your future…
They can analyse financial reports from past months and assess the past performance of your business to look for key trends, insights, and opportunities.
Doing this will allow you to forecast and budget, which are extremely important for any business looking to have the confidence to know when you can spend money / not spend money, know when you can afford to put on more staff and vehicles, and know if you’re in a position to take money out of the business for investments (or well-earned toys!).
As any good accountant will help you see the forest for the trees – to look at things objectively and find the best approaches to support your business both short and long term (making future proof decisions, NOW).
5. Have a trusted mentor and advisor
Accountants are well rounded and have exposure to multiple different industries and intimately understand the ins and outs of running a successful business…
This allows them to know what works, and what most importantly, what doesn’t.
So, this knowledge is beneficial to you as you’ll have access to a trusted mentor and advisor.
You’ll learn best practices with things like your expense tracking and bookkeeping, cash flow management, pricing, profit maximisation, taxation, and the list goes on and on…
And that's 5 of the many reasons to prioritising the key players around you that have the capability to support you in achieving success.
In this case, a winning accountant.
A winning accountant will help you with compliance, saving money, reducing your workload, make better decisions, plan ahead, and improve your profit, cash position, and overall business value.
And if they aren't, then it might be time to change accountants.
If you're an electrician, plumber, painter, carpenter, or any other tradie business owner who is looking for assistance with your tax, accounting, and bookkeeping - click here to learn more!