The introduction of cloud accounting software has caused quite a disruption in the accounting industry. Many small business owners believe that it is a luxury to have a professional accountant. The hype surrounding cloud-based accounting software has created a perception that it is easy for small business owners to do their own bookkeeping or delegate the processing to an employee who does not have any knowledge or background in the accounting industry.
Accounting software can only do so much. Professional Accountants not only prepare accounting records, but have a wider range of services that they can offer to help your company move forward and grow.
Here are 7 strong reasons why small business owners should hire a Professional Accountant:
1. Expertise in Tax
The Professional Accountant will have a vital role in helping small business owners with their Tax planning. Analysing a financial situation from a tax perspective is what tax planning is all about. Ensuring tax efficiency will provide assurance to the financial planning process and improve overall strategic growth and investment planning. The Tax Shop’s Professional Accountants have access to advanced tax software developed in-house, which means that you never have to face mistakes or delays on your tax returns again. An in-depth knowledge of the tax requirements is crucial in regulating and planning tax affairs in such a way that a tax liability is minimised.
2. Dealing with SARS
When it comes to filling in tax returns and dealing with SARS, most people find it is a daunting and stressful task. The Tax Shop’s Professional Accountants can help take that burden away, with their extensive knowledge of tax laws and regulations and by their awareness of working with SARS on a regular basis. This will not only give the small business owner peace of mind but can also benefit their business financially. Taking all measures to lower the tax liability within the constraints of the relevant laws – by ensuring monthly processing is correctly done (claiming VAT where possible) and by ensuring that returns are filed correctly and on time, and that there are no unnecessary penalties and interest. They can also facilitate in SARS audits and queries, by ensuring that all necessary documentation is handed into SARS and that any follow up requests are dealt with timeously.
3. Complete and Accurate records for better decision making
The Tax Shop’s Professional Accountants not only account for everyday routine transactions, but also ensures that accounting records are complete by accounting for non-routine transactions such as depreciations, finance lease obligations and accruals. Reconciling creditors, debtors and bank accounts is also a very important aspect of accounting and needs to be performed with due care, to ensure that creditors are not overpaid, debtors pay their full debts and bank accounts balance by accounting for all transactions. This is a simple task for the Tax Shop’s Professional Accountants, who will not only be able to quickly identify any problem areas, but will also be able to fix any errors, so that all accounts are reconciling. By ensuring that all aspects of the business are accurately and completely accounted for, reliable management reports can be produced to discuss with the client so that they have a better understanding of the financial position of their company on any given date.
4. Cash flow management and Forecasting
Cash flow is the life blood of a business, without it a business cannot survive. It is therefore imperative that accurate and reliable forecasting of cash flows is done – on a regular basis, as well as to ensure best practices are implemented for cash flow management. If done correctly, cash flow forecasting can paint an accurate picture of your business’ position within the next 1 – 5 years. This is important for any growing business to plan and strategize any growth considerations, in order to plan for future projects or capital expenditure requirements. The Tax Shop’s Professional Accountants have experience in a wide variety of industries and their knowledge of industry factors and trends will play a key role in the forecasting of your cash flows.
5. Control environments and processing workflows
The success of your small business will largely depend on the control environments and processing workflows that are in place. Without them a business has no way to track the effectiveness and efficiency of their operations. The lack of control environments also puts the business at risk, for example credit, liquidity and bad debts. A Tax Shop Professional Accountant will be able to suggest improvements on the business’ day-to-day activities and provide assurance on the level of risk in the business.
6. Business advice, strategies and financial management
Having a complete set of accounting records is great, but what do the numbers mean? Is your small business in a sound financial position? Are there areas of your business that are problematic or unnecessary expenses diminishing all your profit? These are the important questions that will impact on your business success. That is why it is essential to have a Professional Accountant to analyse the financial information on a monthly basis. Helping to identify key areas of your business to keep close track of and streamlining expenses to maximise your profitability. The Tax Shop’s Professional Accountants will also be able to give expert advice and strategies for the expansion of your business, investment decisions or ensuring that your finances are managed correctly.
7. Key skills that professional accountants possess that no software can duplicate
In the age of artificial intelligence and robots, Professional Accountants are still needed, as they possess skills such as the following that cannot be replicated by software:
- Empathy and Relationships – The idea that you can build a trusting relationship with someone who will have you and your business best interest at heart
- Collaboration – Working together with the Professional Accountant who will guide you through all aspects of your business needs, whether it is financial, strategic or planning.
- Anticipation – Software can only be as smart as its programming – a Professional Accountant has the skill to anticipate trends and see opportunities based on knowledge of current and past events and concluding on best practices for taking the business forward.
Make a sound business decision – Hire a Professional Accountant
In today’s technologically advanced world, it is becoming easier to do things ourselves, without the need to pay extra for professional help. While you may be able of doing your own bookkeeping, that is not necessarily the best decision for your business. A Professional Accountant will benefit your business by:
- Offering their extensive knowledge and expertise in accounting and tax
- Ensuring that your accounting records are accurate and complete
- Helping analyse your financial records
- Forecasting cash flows and strategizing business growth
- Aiding in all business and financial decision making
You will not hand over your business to someone who has little to no knowledge of your field of expertise, so why do it with your finances?
The Tax Shop Franchise’s Professional Accountants offer professional services, in the knowledge intensive accounting and taxation domain. The experienced practitioners in the Tax Shop group are well positioned to provide advisory and compliance related services in all areas of accounting, payroll, taxation including consulting on strategy and cash flow.
Let the Tax Shop’s Professional Accountants handle all your financial needs while you grow your business into the success story that it should be!