Why Use An Accountant
By Travis Bacon
November 30, 2020
There are many good reasons for hiring an accountant during the different stages of your business’s growth. Accountants can help you establish the legal structure of your business, provide advice around accessing bank finance, and they can help with day-to-day record keeping. DIY finances aren’t for everyone, especially when your business starts growing and your accounts become more sophisticated. You don’t always need to hire an accountant full-time, Often just a couple of meetings a will be enough to point you in the right direction.
Here are some ideas about when to hire an accountant and how they can help your business develop.
Saves You Time & Money
Majority of people start their own businesses to do what they love, and what they’ve always dreamt of doing. That does not include spending hours on financial records.
Like the majority of small business who are looking to save money, you might try and take the DIY approach instead of hiring an accountant. But how long does it take you to do those accounting tasks? Is it a good use of your time, or should you be out there doing what you love and making money?
For example, say it takes you 10 hours to make your Business Activity Statement (BAS) every quarter, and your time is worth $150 an hour. Effectively it costs you cost of $1,500 to do your BAS yourself. Plus there’s always the risk you’ve made errors – especially if you’re multi-tasking like most business owners.
Hiring an accountant can help you focus your business efforts on the really important (money-making) stuff, whilst they take care of the other boring (tax) stuff. It’s a win-win. You’ll not only have extra time to generate revenue, but also the peace of mind that an expert is taking care of the pesky details.
Tax due dates, rates & amounts seem to change daily in Australia. You business can suffer or you could under-estimate your next tax bill if you overlook a single essential change.
Accountants spend an obscene amount of time reading legislation and staying up-to-date. Hiring an accountant ensures that your deadlines are met and that you’ll be paying the amount of tax to the right people. The system is full of red-tape and is a bit of a minefield in Australia; an accountant will guide you through it with ease.
When you are a sole trader
If you started your business as a sole-trader, the red-tape imposed by the ATO is not much different than a larger business. As a business owner, you need to know about the legislation and laws that apply to you. The DIY approach is very time consuming and risky. Keeping up to date with regulatory changes is demanding on a business owner. A smart sole-trader will hire an accountant and get access to up to date regulatory advice which helps ensure your complying with all the relevant laws.
Technology plays an integral part in the financial success of a business in the modern world. An accountant can help you set up a completely automated financial package to help you track time, invoicing and evening collecting cash from a customer.
Dealing with the ATO can be time consuming and tough
An accountant doesn’t just prepare forms and submit them to the Tax Office or relevant government body, they also liaise with them regularly. An accountant can interact with the government on your behalf to arrange deferred payment terms, an extension of lodgement, correct lodgement errors and much more. Dealing with government bodies can be frustrating and time-consuming, let an accountant use their magic phone numbers to speed up the process and navigate the red-tape.
Business support and advice
Accountants don’t just crunch the numbers and help with your finances. They can help you with your whole business set up, improve your profit, or they can give you extra business contacts to help drive your sales. As your business grows, an accountant can talk you through various options you may have around your business structure and provide CFO services at a fraction of the cost.
Full account management
Although ultimately you’re legally responsible for your businesses accounts and lodgements, you can get an accountant to deal with it for you. It’s necessary to keep a record of all the income and expenditure that a business incurs, as well as the overall financial position of a business; this often takes the form of Financial Statements. Accountants can manage all that for you and liaise directly with government agencies or financial institutions. No doubt hiring an accountant to assist in the preparation of financial statements will give a bank more confidence in the numbers.
It makes life easy
If the thought of spreadsheets, red-tape and government agencies give you a headache, then perhaps the right move is to hire an accountant. The added benefits of not having to worry about your business accounts and having a business connection to guide you just makes sense.
Having a qualified accountant on your team will ease your load and give you peace of mind, allowing you to get on with the money-making stuff.
Get the latest industry and tax information from our small business blog.