Can Accountants Help You Grow Your Business Wealth? Key Takeaways Accountants play a significant role in growing a business’s wealth by analyzing expenses and identifying cost-saving opportunities. They can help businesses choose the right structure for tax benefits and liability reduction. Accountants advise on investing profits wisely, considering factors like company structure and tax implications. Pricing strategy optimizations and supplier negotiation are other contributions they make to enhance profitability and long-term growth.
Most business owners have considered the many possibilities for cutting costs and enjoying a healthier bottom line. Many of these actions are drastic and focus more on cutting immediate costs rather than how to build more firms’ wealth.
While you might not have the financial acumen to come up with effective methods yourself, your accountant likely does.
Reach out to them to receive guidance with some of the following organizational wealth-building tasks:
Analyzing Your Expenses
The small business accountants Brisbane enterprise owners use, and those relied on in other parts of the world, can aid you in analyzing your expenses. This simple action might be all it takes for you to realize how many easy ways exist to bolster your bottom line.
When they analyze your firm’s budget, they look at the costs that seem too high compared to industry standards and averages.
For example, they might be able to tell by looking at your utilities that your
energy provider is charging you far more than what is considered normal for your industry.
The more you know about your expenses, the more power you have to reduce some of them.
Checking Your Business Structure
Registering your business for the first time requires selecting a structure to fulfill your tax obligations. The entity you chose might have been the best option at the time, but that doesn’t mean it suits your organization long-term.
Your accountant can be an excellent source of knowledge on these structures and their relevance to your tax requirements. You can learn the pros and cons of each one and make an informed decision that suits your company’s interests.
Most of them consider changing their entity to lower their liability and improve their tax burden. These are two excellent reasons to ask your bookkeeping expert about these structures sooner rather than later.
Investing Your Profits
Many businesses find themselves amassing vast amounts of profit at the end of a financial year. They’ve covered their taxes and expenses and still have plenty of money sitting in a bank account.
However, most of them will tell you that your profits don’t have to sit idle. You can put them to work. Alongside investing in
marketing, employee training, and new equipment, you can also look at equities and bonds.
How you’re able to purchase equities and bonds can depend on your company structure. For example, LLC owners and managers can buy stock on behalf of their company.
They can also give this power to everyone involved in the company’s ownership. If your firm is an S-corp or C-corp, any equities you buy can be subject to capital gains tax. There can be many pros and cons to weigh up before you consider investing your company’s profits.
As a result, it can be wise to discuss this idea with your accountant before deciding.
Small business accountants in brisbane help small business owners around Australia save tax, boost their profits, and accelerate cash flow. Reviewing Your Pricing Structure
Setting prices for your products and services can be tricky. Once you know how much this cost, you must add a margin to cover other expenses like employees, premises, insurance, and tax. It’s also important to leave enough money to help your business turn a profit.
Meanwhile, you still have to ensure you’re competitive in the marketplace.
When you find this task too complicated, you can rely on your bookkeeper to lend you support. They can use their industry knowledge, resources, and tools to align your pricing with market expectations.
If they identify room for price increases, you might boost your profit margin beyond what you thought possible.
Do You Know? 65% of the accounts have relied on technology in the last two decades to meet the client’s requirements in this rapidly changing landscape. Negotiating with Suppliers
Depending on the accountant you select and the industry they specialize in, you might be able to rely on them to assist with supplier negotiations.
The more affordable the produce and materials you receive from your supplier, the larger your profit margin can often be. They provide you with the financial information you need to hold productive meetings with suppliers. Sometimes, they can even negotiate with them on your behalf.
Examining Products and Services
Not all the products and services you offer will be profitable. Many businesses have loss leaders that guide them to sell other profitable commodities and services. However, that doesn’t mean the owners want to see any part of their organization underperforming.
Your accountant can help review these outcomes to identify any underperformers. They might then suggest actions you can take, like dropping particular services or increasing your prices. Growing your business wealth is about more than cutting immediate costs. It can be about hiring experts to examine your business model with a fine-tooth comb and future-proofing it for business success. If you haven’t yet discussed business growth with your accountant, now might be the right time to do so.