Accounting is an important part of any business. It helps business owners control their finances in a more ethical manner along with helping them realise the need to either cut down their expenses or invest more capital to function better. Accounting services produce the financial information that your business needs to understand the financial performance while helping stay compliant with the Australian Tax Office (ATO) and ASIC.
In addition, whether you are a business owner or leader focussing on growing the revenue, compliance and tax requirements must be addressed. Failure to do so can result in penalties, a bad reputation and back-charges.
Without an accountant, you are not ready to move forward. That said, there are several ways to manage the accounting services for your business, ranging from outsourcing to hiring in-house staff members.
In this article, we cover several reasons why your business needs accounting.
Some of the common accounting services offered to get your finances under control are:
- Bookkeeping services – Bookkeeping services involve recording financial transactions like purchases, sales, receipts, and payments of a company. They also include preparing profit and loss statements that decide the revenue flow and expenses of the business.
- Auditing services – Auditing and accounting services include preparing financial records and tracking expenses and revenues for both short-term and long-term planning. This helps business owners make informed decisions.
- Business development and valuation – Business development evaluations are one of the most important services offered by accounting firms. These evaluations help business owners decide on future investments and loan considerations. Accounting firms mostly also assist new-age businesses with pro forma financial statements, assumptions and projections.
- Tax preparation services – Business owners often need to avail taxation services to file their tax returns. Accounting services offer the right tax calculations, thereby preventing the chance of any potential mistakes and miscalculations.
- Outsourced CFO advisory services – Hiring an experienced Chief Financial Officer on a part-time basis through accounting firms can make your business successful. Such advisory services include plans to maximize profitability, financial maintenance, prepare for growth, or assist a transaction and so on.
Why do you need accounting services for your business?
Accounting is important in managing every vertical of any business, irrespective of its niche. Here are some of the top reasons why accounting services are crucial for businesses –
- Enhance the growth of your business – If your accounting is handled correctly, your business’s financial health will improve as time goes by. You will make informed decisions to support the growth of your business and will understand deeply how your decisions affect the financial stability of your business. A credible firm providing accounting services will highlight your business’s cash flow and seasonality to better evaluate your collections and receivables. You can make your business a huge success by establishing a sound accounting system and making strategic business decisions with greater ease.
- Save money – Hiring specialised accounting agency is an economical option rather than hiring a full-time accountant with training and personnel costs. Agencies bring together expertise in various domains, ranging from bookkeeping to auditing to tax management, which is a bit hard to find in a single-person hire.
- Save time – Rather than taking the pain themselves, business owners can offer their accounting responsibilities to an accounting firm, to focus on something more important. Delegating responsibilities helps them in better workload management and gives them time to think about more strategic avenues for the growth of their business.
- Stay compliant with statutory requirements and regulations – Accounting services help businesses avoid financial penalties and irregularities by proper maintenance and auditing of the accounting records of a company. Because accounting services have experts who are well-versed with accounting laws and procedures, they help you to recognise any potential faults in your records well in time and help you with taxation compliances.
- Organize your finances in an automated flow – It enable your business to set up a secure platform to store your records in a safe manner. This helps in retrieving your records later for financial and other purposes. Other than safety, accounting services offer insights into the most profitable areas of your business by creating digital analytical reports.
- Maximize savings and deductions for your business – Other than saving your business from tax faults, hiring accounting services is also advisable to leverage tax benefits. If your business is overseas, accounting services save you from double taxation by familiarising you with several tax treaties. They also handle the nuances involved in obtaining tax rebates and business expense deductions.
- Help create a budget and future projections – Properly accounting financial records help in budgeting, which can either make or break your business. The financial data stored is analysed by accounting services through well-structured accounting processes. Your financial data will help you with the latest business trends and projections based on market insights.
- Access expert advice – Accounting experts are paid to offer accounting services and often do it in the most nuanced manner. Accounting services offer the most unbiased and objective expertise while handling the accounts of their clients. They also offer tailored services according to the needs of the business.
- Improve productivity – Accounting offer deep insights into what does and does not work for your business. It gives you a critical perspective on budgets and finances by producing high-quality results while helping business owners to improve their performance or slow down based on financial analysis.
- Help businesses grow sustainably – Accounting services today mean more than just accounting, they also help businesses in funding, managing cash flow, incentivising pay packages for employees, and so on. Great accounting services can help you react and decide quickly to unexpected losses or profits to your business.
If you’re looking for an accounting services agency, Etlanda Taxation is your best partner. The team of accountants, business coaches and bookkeepers help businesses achieve their financial goals. Their areas of expertise include tax effective accounting, bookkeeping, auditing, setting up ATO compliances and buying and selling of businesses.
