How Can An Accountant Add Financial Value To Your Small Business


In today’s uncertain economic conditions, businesses are looking for sustainable strategies to manage their finances effectively. From record-keeping, taxes to financial statements – entrepreneurs want to stay on top of accounting-related tasks. However, that might seem pretty challenging because business owners have plenty of other responsibilities. So, why not bring a proficient accountant on board? 

A competent financial accountant can provide tactical advice while handling all money-related matters. In addition, they have strategic opinions on how to improve cash flow, forecasts, and financial performance. Precisely, accountants unfold opportunities you can pull in your business to boost profitability and shareholder value. 

Above all, accountants are well-versed with the organization’s financial hierarchy. Whether it is filing taxes, KPI development, or system integration, an accountant ensures your business is up to date with evolving financial trends. If your business is lagging in this regard, don’t hesitate to bring an experienced accountant on board. Here we are listing six ways how an accountant can add financial value to your small business. 

Manages Operational Finances

Most entrepreneurs focus on short-term goals, but you will catch sight of the bigger picture with an accountant on board. They process operational finances and historical data to build financial forecasts. In simple words, they target the company’s current financial performance and create a future outlook. In turn, business owners get an idea of where their business stands in the coming six months or five years, allowing them to make more apt decisions. 

However, permanently hiring an accountant can be pretty costly. Thus, if that doesn’t seem to fit into your budget, learn the ropes yourself. Look up what skills do you need to be an accountant and step into the finance world. Besides operational finances, you will learn the art of financial reporting, allowing you to take over accounting tasks without any hassle. 

Develops Cost Reduction Strategies 

Rising expenses and costs are one of the primary concerns of every business owner. Many entrepreneurs think of cutting back the marketing expense, but that does more damage to sales than costs. With an accountant on board, controlling costs won’t be an issue. They closely monitor every expense and deploy strategies to keep the costs in control. For instance, if the raw material cost increases because of import duties, they will find you a local vendor. 

Similarly, if utility expenses are consuming a lot of profits, they will initiate energy-saving policies. Perhaps, you can install solar plants, use energy-efficient bulbs, or make the most of natural light. These strategies contribute to the company’s long-term success while reducing costs and boosting profitability. Remember, the accountants will provide you with a cost-benefit analysis of every strategy. You have to decide what works best for the company. 

Improves Bookkeeping 

Usually, business owners think of bookkeeping as a compliance-driven activity and an administrative function. That’s nothing but a misconception. In reality, bookkeeping is like building the blocks of financial data, and an accountant helps in structuring this data. They record, analyze, and interpret information to monitor a company’s financial performance. They also assist management make decisions based on numbers and results achieved by bookkeeping. 

Although you can maintain records yourself, accountants can speed up the process. They use high-tech tools with cloud servers to record information. In most instances, they don’t even record the data because the software automatically enters every detail. The software connects with bank accounts which means, accountants will have an eye on all cash inflows and outflows. 

Streamlines Reporting Processes

With tons of financial data generated by the business, entrepreneurs often feel overwhelmed by the amount of information. Well, competent accountants can use their expertise to help you understand the financial models of your business. In addition, they will establish systems to monitor and measure the metrics to determine business performance. Centralizing data and generating performance reports will allow you to identify trends and patterns that can foster business growth. 

Moreover, the accountants will issue reports to the management every month. It would act as a fundamental piece of document for understanding business activity and decision-making. Perhaps a positive outlook can give you a green signal to bring in more investors, acquire loans, or purchase machinery. Making decisions based on data will go a long way for your business, ensuring strategic financial management and a healthy future outlook. 

Provides Funding for Growth

Sometimes, businesses have to raise additional capital to expand, but they can’t get loan approvals without expertise. After all, banks or any other financial institution won’t be willing to lend you money without financial records and a business plan. Here, the role of accountant comes into play. Accountants provide a robust financial case in front of the bank and shareholders about how additional funding will benefit the business. Additionally, they explain the extra return investors will generate from the funding, gaining shareholder’s trust. 

After internal approvals, accountants will evaluate the funding options. From loans, credit lines, equipment financing to venture capitals, they would assess which option is the most viable and cost-effective. Similarly, they will fill out the loan applications on your behalf to ensure it gets approved in one go. In addition to reducing work from the owner’s end, it will expedite processes, pushing the business towards growth. 

Ensures Tax Compliance

At some point in time, almost every organization faces difficulty in filing taxes. From missing deadlines to not filing returns – non-compliance can put any business in a lot of trouble. Fortunately, that won’t be the case if you have an accountant on board. Accountants are well-acquainted with the tax regulations and laws of every industry. Hence, they would ensure your company is operating from the proper structure and maximizing the tax incentives. 

Moreover, accountants will maximize the tax incentives and deductions available to your business. For instance, if you export products, they will ensure you qualify for the government support scheme. Likewise, they would calculate all the deductibles, including depreciation and travel expenses. Most importantly, the accountant will maintain records for every deductible to close doors for potential IRS audits. As a result, you can scale down taxes and increase your business income. 

Final Words

As the business landscape is evolving rapidly, staying on top of accounting-related tasks and finances is essential. However, that won’t be possible unless you bring competent accountants on board. They maintain records, calculate taxes, acquire funding, and manage operational finances. In addition, they implement cost-cutting measures and generate financial reports. Alongside improving financial management, it adds value and sets up the business for success.