Running any organisation requires many skills, not the least accountability and the many financial transactions that an SME would conduct on a typical day need to be recorded. Both revenue and outgoings should be clearly listed and failure to effectively manage your bookkeeping could land you in hot water with the tax people.
- Maintain Good Relationships – Australia, much the same as any country, has rules and regulations regarding company taxation and audits and these need to be completed promptly. Should the tax department decide to investigate a business and they find irregularities, this could be very costly, and by employing the services of a qualified accountant, you can be sure that all your tax returns and books are always up-to-date and submitted when requested.
- Evaluate Business Performance – It is very difficult to assess how a business is performing without a set of up-to-date books, which would include details of all financial transactions and at a glance, you can see how the business is performing. If, for example, a company is spending too much money, this might not become apparent if the accounting records are not current and the longer this goes on, the more it will cost the business in the long term. Some companies have gone bankrupt because their losses were not evident until it was too late, which highlights the need for regular bookkeeping.
- Identify Strengths and Weaknesses – Keeping an accurate set of accounts enables you to identify the company’s strong and weak points, which in turn allows the business owner to make the necessary amendments to strengthen weaker performance areas. A reputable accountant, such as those from the EQ Financial bookkeeping services Sydney that businessmen rely on, will ensure that all your business transactions are recorded and up-to-date.
- Avoid Tax Investigations – If a company is late submitting their annual tax returns, or there is a discrepancy, this could cost the business and with a qualified accountant making sure that all the accounts are updated, you can avoid any investigations by the authorities. If your company should come under the microscope, search online for good advice on how best to cope with a tax investigation.
- Improved Business Funding Status – Should a business owner be looking for funding, having a clear set of accounts will improve their chances of the loan application being approved. Lenders like to see accurate accounts and if you can show that your company is making enough money to repay the loan, the chances are you will get the business funding you need.
- Effective Planning for the Future – If your company’s accounts are professionally handled and adequately maintained, then it is much easier to plan for the future, as it will be clear to see the status of the business. A qualified accountant would ensure that your accounts are always updated with the correct information and this allows for effective planning for the future.
Ask any successful entrepreneur and they will tell you to enlist the services of a qualified accountant as soon as possible, as this will have many benefits.
