You have paid a visit to your tax accountant and you are done for another year. Right? Well, not exactly. There are a few other considerations when it comes to a business or entrepreneur’s finances. And it’s the difference between a smoking hot, smashing your finance goals kinda of scenario or a we know how much tax we need to pay this year scenario.
JUST LIKE GARDENING
Let me explain with an example of planting a garden bed (not my strength although I’ve tried) – you have dug holes, taken the plants out of the pots and placed them in the ground. You have even watered the newly planted plants and sprinkled a little fertilizer around the garden bed. You can walk away now and in a few months you’ll have a thriving garden bed, flowering and full of sprouts and new buds.
Well, not likely.
A few plants may survive, and if the plants do grow, it could be luck or that the plants are using up what resources and nutrients were originally in the dirt. But of those untendered, unwatered plants – most won’t make it through the first year let alone the next two or three. Sorry if I don’t sound enthusiastic, but I’ve been there!
There will be points when you’re glancing at your garden bed and you notice some of the leaves are turning a little brown. And that plant over there, to the left, well it’s kind of looking smaller than the others. It hasn’t grown or sprouted any new leaves in a while. So, you race out and grab some fertilizer, and start watering the bed every day for a week to save the dying plant. You’re not quite sure if it’s working but you’re trying your best.
Upon reflection you begin to wonder, what if I had read that book on gardening when I first planted the bed, and what if I watched a few videos on how to best keep a thriving garden. You begin to realise you’re not a gardening guru, and there is a lot more to this than you first realised but there are plenty of resources out there for you to pick up your game and apply your new knowledge.
TIME TO TEND TO YOUR BUSINESS MONEY
Accountants are the horticulturalists of the finance and numbers world. They provide the guidance and expertise required to not just have any old kind of business, but a thriving business. And there are many roles that they play:
>>The doctors of the business arena
Diagnosing issues, treating symptoms and prescribing a plan for increasing your business’ financial health. If picked up early enough, they can assist in avoiding major issues. Under-charging? Low bank balance? Or not enough to pay bills?
Teaching business owners simple methods to track key measurable, manage cash flow and basic calculations for pricing, costing and profit margins.
They take numbers and turn them into a story for the business owner to base strategic business decisions on. Should we invest in more product? Am I pricing this product to make a good margin? or can we afford another staff member?
>>Financial side-kick or companion
Many business owners are overwhelmed by making every financial decision on their own. The weight of making big decisions can be exhausting, causing sleepless nights and stress. Having a second set of eyes look over the figures or having someone do the difficult calculations for you can be just what is needed.
Have you thought about how you need to structure your business finances? Financial systems and strategies provide calm in the chaos of the business world.
FINDING THE RIGHT FINANCIAL SUPPORT TEAM
In addition to the different roles accountants take on, they also have varying specialities. Some are tax advisors, some are business or profit strategists, reporting analysts, auditors or they work in an investigative or forensic capacity. Some work directly for large companies and others for a range of small businesses or from a personal perspective.
Not only do you need an accountant, but you need to know what kind of accountant you require. Sit back and reflect on the different finance tasks your business requires, some you will already be nailing, but others might need some professional help – then enlist the right financial support team to help your business thrive!