Strong cash flow will carry a business through any eventuality. However, cash flow is also one of the biggest challenges, particularly for a small business or a start-up. Whether you’re just starting out and looking to get into good habits, or you’re more established and seeking growth and efficiency, a good accountant can play a big role in helping your business improve.
Getting on top of the books
Improving cash flow is virtually impossible if the books are in a mess. If you haven’t kept any records – or this hasn’t been done with much focus or efficiency – then you will have little insight into how your business is actually performing and where improvements could be made. Working with an accountant can help to establish a foundation of solid accounts and record keeping, which is where positive cash flow change can come from.
Minimising tax payments
With the support of an experienced accountant it’s far easier to be more efficient when it comes to paying taxes. Too many small businesses pay too much tax, missing out on the reductions and allowances that apply, simply through lack of awareness. With an accountant on board you can reduce your annual tax liability and free up more cash to put back into the business.
Driving business growth
The combination of your own knowledge and expertise of your business, with the financial experience of an accountant, can provide essential insights to drive growth. Business structuring, strategy and short and long term goals are all areas where an accountant will be able to provide the kind of support that could result in an increase in sales/leads/transactions – and, consequently, cash flow too.
Creating a financial safety net
Accountants are a great resource for organising your books, managing cash flow and identifying where you might be able to generate more liquidity if times get tough. A good accountant will also be able to help you find additional finance, identifying the right sources and helping you to prepare the right documents so that if cash flow gets squeezed really tight you have another option.
Cash flow expertise
Cash flow projections and forecasting are at the heart of ensuring that your business is able to function well and invest in growth. Particularly for early stage businesses this kind of expertise might be a little thin on the ground at first. An accountant can bring essential experience to those enterprises that require a helping hand when it comes to cash flow expertise – supporting the tie up of projections and results.