If you’re having cash flow problems then this could prove critical for your business. However, cash flow issues are not always a sign that there is something fundamentally flawed with your proposition. Instead they may indicate that a different process or perspective is required – which is where an accountant can help.
1. Identifying and reducing expenses
Sometimes it takes a second pair of eyes to see where money is being wasted. Bringing in an accountant to look over your figures will give someone else the opportunity to identify what positive changes you could make to release some cash flow and make the business feel less cash strapped.
2. Ensuring you’re optimising tax relief
There is no way out of making tax payments, however, working with an accountant will ensure that you’re making the most of all the relief available. This, in turn, will give you a smaller tax burden and there will be more cash left in the business as a result.
3. Creating additional funding options
There may be opportunities for funding, loans or grants that you had no idea you were eligible for. An experienced accountant will quickly be able to identify your best options and help you to process the paperwork for applications. For many businesses, a credit facility, grant or loan can provide the kind of temporary cash flow relief that allows the business to start growing again.
4. Better financial forecasting
If your cash flow is seriously squeezed it could simply be the result of bad financial planning. Working with an accountant to hone your financial forecasts will give you much more accurate and easy to understand data to work with when it comes to anticipating where your business needs to go next.
5. More accurate books
Staying on top of the books for your business is incredibly simple but it can seem like an impossible task if you don’t know how. Working with an accountant will enable you to change old, negative habits and get your books back onto the straight and narrow, so that you can see where the cash is coming and going.
6. Tax planning
From VAT to annual tax returns there are multiple payments and filings to handle when you are running your own business. Accountant support can not only help to ensure deadlines are met but also that you’re integrating the payments into your planning so they don’t have a sudden negative impact on cash flow.
7. A new perspective
When business finances seem to go south it’s very easy to feel overwhelmed and then it gets difficult to find a way out. Bringing in a professional with a new perspective may be all you need to make those key strategic decisions to turn your cash flow problems around.