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Most business owners will find that working with an accountant is a simple and productive task, as many accountants can work independently while also providing your business with expert services and advice. However, to make sure you are maximising your accountant’s services and working with them in the best ways possible, be sure to do the following.
Ask about your business financial health
It is a good idea to always stay informed about the state of your business financial health. Although it may be tempting to leave everything up to your accountant, as a business owner, it may be helpful to deepen your understanding of how your business finances work and how everything ties in together to protect your business’ financial health.
Your accountant will determine your business’ financial health using your business’ accumulated profit and loss statements, balance sheets and credit and debit data. They will also be able to calculate your business’ revenue with this information and compare it to your costs. By looking at your assets and liabilities and calculating whether or not your business is making a reasonable profit margin, your accountants will be able to determine your business’ level of financial health.
Investigate your cash flow with your accountant
Not only is it useful to learn about the general financial health of your business, it is also important to understand the ins and outs of your business cash flow. Your accountant should be bookkeeping and creating statements of your business cash flow, detailing the movement of money in and out of your business, and where you have cash inflows, outflows and plateaus.
Regularly checking your cash flow statement with your accountant will help you understand how to better plan for the growth of your business, and where you can potentially focus your resources to drive growth. Your accountant may help you address any problems relating to your business cash flow and even provide you with financial advice on how you can better record and manage your business cash flow.
Address the weak points of your business first
Even the most profitable businesses will have their weak points, and your business is sure to have a few as well. Although some business advisors may recommend focusing on your business strengths, covering your weaknesses is always a safer and smarter move. Venn Accounts can help you do just this by checking your cash flow statements and identifying where your business activities are the least profitable.
For example, your accountant may identify a problem in your business’ salary costs, where an independent contractor may be more efficient and less costly than a regular employee. It is important to work with your accountant around the weak points of your business and to rely on their advice for ways to improve your business’ growth rate and profitability.
Working with an accountant is always going to be helpful for your business – however, there are certainly many ways to help guarantee that your experience working with an accountant is as worthwhile and valuable as it can be. Be sure to apply the above three methods when working with your accountant to be rewarded with the best results!
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