Money Management: why you need an accounting expert
Running your own business is hard enough without the stresses of dealing with finances, which can be very challenging. If you’ve tried to tackle this yourself and have almost died trying, it's time to admit defeat and get some help. It’s understandable that you want to cut costs as much as you can, but without an accounting background or solid understanding of business finances you can easily hurt your business financially, not only now but also in the long-term. Hiring an expert should be a priority and is a crucial step for your business’s success.
Here are 6 reasons why your life will be a lot easier with an accounting expert on your side:
1. No more sleepless nights
Money management is central when you are self-employed or run your own business. If you’re doing it right you can keep the cash flowing in, and the nightmares out! You’ve suffered way too many sleepless nights and it’s just not worth it. Being able to rely on an expert will allow you to feel in control and confident that your finances are being taken care of, worry-free.
2. Having a plan of action
One of the most difficult elements of being self-employed is being prepared for unexpected financial events such as unpredicted expenses, your business taking longer to take off (or a worldwide pandemic!) An accountant can foresee situations that you may not have even considered before and that is why some serious financial planning needs to take place, especially if you are a start-up business. Your accountant will be your sidekick and is there to help navigate the important decisions that will impact your finances. Use them as your guide to create a strong financial plan.
3. Being able to understand your cash flow
It is vital that you understand your cash flow, and incorporate forecasting into your finances. What is that, may you ask? Cash flow forecasts are generally used to help you plan how much cash you are going to need in the future and can be an early warning for any impending issues. Your accountant will help estimate the amount of money that moves in and out of your business, taking into consideration your projected income and your expenses. By cash flow forecasting you will be able to estimate future growth. When you compare your income and expenses with your cash flow forecast you can see whether you are hitting financial targets, what areas of your business are doing well, and what areas are not doing so well. You can run through hypothetical ideas to try and predict their impact, covering all (hypothetical) bases helping you to make better informed business decisions, and avoiding any nasty situations. Cash flow forecasting isn’t easy to understand but with a helping hand it won't seem so scary. Without it, you would be playing a very dangerous game.
4. Monthly planning made easy
By calculating monthly reports you can track performance, see changes and keep on top of your finances successfully. By being proactive with your book-keeping you can avoid the horror of encountering problems too late, finding yourself with little money and large debts. This is something you cannot ignore if you are running a business. Book-keeping definitely isn't straight-forward, so knowing that you can give your accounts to a professional so they can deal with the complicated accounting stuff every month, is a huge weight off of your shoulders.
5. Tax return help
Filling in tax returns is a common complaint. It's confusing, boring and quite frankly, doing it yourself is more hassle than it's worth! Submitting incorrect information or filing your return too late comes with nasty financial penalties (I’m sure you’ve heard the horror stories, and if you haven't...consider yourself lucky) Accountants use numbers everyday, will ensure that everything adds up, and will save you so much valuable time. For them, it's an effortless task that they could probably do with their eyes closed. The money spent hiring an accountant would be less than the penalties you would suffer for a late return or mis-information! Save yourself the headache and leave it to the experts.
6. Time to focus on what makes you happy
Most importantly, without financial stresses you can focus your attention on what matters the most. The things you love. Whether you are self-employed or are running a business, you without a doubt have a passion for something that is important to you. The joy you feel can quickly be overshadowed by financial doom and gloom, so why let it? Why struggle when you don’t have to? Business finance is a minefield, don't get caught in the battle. Surrender.
We cannot stress enough how important it is to make sure that you are choosing a certified or chartered accountant with the relevant experience. SIGMA Chartered Accountancy can provide you with over 10 years experience (CIMA qualified).
Visit our services section for further information on how we can help you with money
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