Updated: Jan 23, 2019
We all know that our accountants help out with taxes and financial direction, though they add so much more value than simply finding a fiscal leak in your records. Accountants and bookkeepers are essential to your company’s success and can often provide extensive advice and direction when you need it most.
Let’s take a look below at how your accountant can save you money.
They’ll Spot Ways to Cut Costs
One of the most appealing aspects of hiring a remote accountant is the record keeping expertise they will bring to your business. After just a few days of working with your accountant, you'll immediately be aware of where you’re able to cut costs. As a result of this, you'll be able to start cost-saving activities and reinvest the savings made from these back into your business, further developing it.
If you’re a business with complex cash flow, an accountant is a godsend. You’ll have a new, qualified team member analysing your cash flow and working to spot trends that you might not have noticed. During cash flow analysis, your accountant will easily spot which activities yield the highest returns and they’ll be able to highlight where best to direct your attention.
You’ll Avoid Financial Penalties and Fines
In Australia, tens of thousands of sole traders and small businesses missed their tax deadlines or made errors last year. Most of which were subject to fines and penalties that contributed to more than $2.78 billion dollars. And that was just 2018 alone.
With your books in the hands of a capable remote accountant, you’ll be acutely aware of what’s going on and when you’re required to submit returns, pay tax bills and more. This, in turn, saves you money and keeps you from being susceptible to unnecessary fines or penalties.
A final thing to note is that your accountant will keep all of your documentation and financial information in order. This will mean that if you’re ever subject to an audit, you can rest assured that you’re totally in the green.
You’ll Be Given Unrivalled Cash Flow Advice
An unfortunate statistic is that over 80% of businesses - big and small - fail due to cash flow issues. Overspending and revenue falls often cause irreparable issues for businesses and force them into bankruptcy.
One of the most common reasons for major cash flow issues is unpaid invoices or delayed payments. This is where your accountant steps in. An accountant will have a bird's eye view of cash flow and work to optimise just about every aspect of your cash flow.
Simply speaking, because of your accountant, you will always know the state of your accounts and understand how much money is coming in and out of your business. This keeps you in the know and ensures you’re able to clamp spending when times get tough and reinvest into your business when sales are doing well.
Sole Traders Might Receive Personal Advice
If you’re a sole trader, there’s a pretty good chance your business finances and personal finances are virtually the same two things. That means your accountant can work to give you some advice for both your business finances as well as your personals. If used correctly, this advice should help you reduce your stresses about income and business growth. You'll be able to focus more on freeing up the time to spend with family and friends, rather than going over your accounts on the weekends.
At the end of the day, your accountant will be looking to push you into the best financial position with regards to your income, expenses, tax position as well as your personal expenses.
Outsourcing Saves on Office Space and Equipment
We all know how expensive office spaces and ongoing stationery purchases for team members can be. With a remote accountant, you don’t need to pay any of these fees as a remote accountant will already have their own workspaces to work on your projects. Generally speaking, you’ll receive great service at a dramatically reduced cost.
On top of office savings, you won’t have to fixate on hiring new, full-time employees because your remote accountant will be working entirely on a fixed-price or hourly rate that you decide beforehand. This cuts back on having to pay for extras like workers compensation and more, which ultimately gives you extra savings to reinvest back into your business or your savings account.
A Remote Accountant from Money Monarch
If you’re a business, sole trader or just about anyone else in search of a capable, affordable remote accountant or bookkeeper then get in touch with Money Monarch. We offer competitive Australian accounting services and fixed-fee accounting solutions.
You can find more information on our fixed-fee accounting services on our website.