If you are a business owner, you’ve probably had a moment where you asked yourself what exactly does it take to make a business grow? It’s one of the most common challenges facing a business. Well, now it turns out it might be much simpler than you think.
“A brilliant idea doesn’t make a successful business. Accounting does.”
That’s according to Tilman J. Fertitta, a self-made billionaire and owner of National Basketball Association (NBA)’s Houston Rockets. In an interview with CNBC, the celebrity star said that one piece of advice that he would give to every entrepreneur is: “Don’t ever let your business get ahead of the financial side of your business. Accounting, accounting, accounting. Know your numbers.”
Truth be told. In a busy and chaotic age of competition, it’s hard to blame business owners to focus on just the product. Most entrepreneurs come up with an idea and then think they are dressed for success. They don’t emphasise on understanding credit, the working capital, and the business side of the product. Which raises the question: why it’s important to have an accountant for your business?
To Find the Best Business Structure
Accounting is not at all about counting money, as some people might think. It is way more than that. With the help of professional accountants, you will be able to find the best structure for your business.
For Business Growth
We all know the importance of financial analysis for a business. If you want to make your business successful, then finances must be involved. Without professional accounting solutions and a business plan, you might not have much idea about the company’s finances. And without proper records, you might not know where the business stands. Now this can hinder business growth.
Saves Time, Money and Energy
Most entrepreneurs think that a limited budget means they won’t be able to afford hiring an accountancy firm. That’s not the case. Think about how much time and energy you spend on managing the finances yourself. Not to forget the possible errors you can experience during reporting and the related losses from poorly made financial decisions. Having said that, the benefits certainly outweigh the cost.
As an entrepreneur, you must focus on achieving your business goals. Therefore, investing in an accountant as your ongoing advisor will help you stay focussed towards your desired goals.
Make real-time decisions
Many business owners often express their wish to be able to easily calculate the potential risks and implications of making a big purchase or hiring more employees. Having said that, accountants precisely specialise in risk management. Hiring an accountant as your financial advisor can help you monitor cash flow on a steady basis, and allow you to sail across the hurdles that can occur in real-time.
You should work with a collaborative strategy. One that allows you and the accountant to make decisions together based on the latest data and also take advice on various business decisions when you need to make them.
Plan for the Future
Finally, one of the biggest advantages that accountancy firms offer is a consultation on how to plan for the future. With their help, you can analyse the reports of the past months and examine the seasonality of your business. This will help you understand when’s the best time to budget for big-ticket investments, buy inventory so that you can stay viable, yet competitive.
As the business owner, figuring out what can make your business successful is your responsibility. However, you can take help with running the day-to-day operations. For example, hiring an accountant can help you look at the bigger picture, and find the best way to support the longevity of your business.
A business owner can often feel alienated, especially when working with a pile of receipts and invoices to finish through at the end of the month. It doesn’t have to be that way. Partnering with an accounting firm that offers skills to guide you through the journey will bring your business the taste of success.