Making business-critical financial decisions can be overwhelming, especially because it involves several complex factors to consider. An accounting firm has the knowledge and expertise to evaluate your financial condition in-depth and improve the ability to make smart decisions. And it isn’t just mere financial statements or cash flow management that accounting firms specialise in. Here are 5 ways a professional accounting firm can help make smart business decisions.
1. Financial Data Management & Analysis
A company’s financial structure is the key to effective business operations, paving the way for growth and a better financial future. An accounting firm comprises accountants, auditors and advisors who can help collect, maintain and analyse critical financial data. They ensure that the company’s financial information is maintained in the right format and complies with accepted procedures.
Whether you need a hotel accountant to manage the financial data of your hotel or an advisor to start up a new business, an accounting firm can streamline the process of making key financial decisions.
2. Maintaining Books of Accounts
Understanding the financial position of a company is crucial to making informed decisions and growing your business. In this regard, an accounting firm plays an integral role by maintaining books of accounts. Efficient record maintenance and financial statement preparation not only help assess the company’s profit or loss; it also provides a clear picture of the financial position. It also allows business owners to take corrective measures and formulate effective plans for future growth.
3. Cost Accounting
An accounting firm also specialise in cost accounting that helps determine the cost-effectiveness of the company. They will record, classify and summarise the financial information pertaining to cost. After analysing the data, the accountant will devise a strategic plan to identify the bottlenecks in the cost structure and reduce excessive costs.
For instance, a proficient pub accountant can make a huge difference to your business. From efficient data collection to hassle-free payroll, business planning & support, supplier contact and advice on cost savings – they can help reduce waste and increase profit for your restaurant or pub.
4. Taxation
Tax assessment holds immense importance for a business of any type and size. An accounting firm has expert knowledge of taxation procedures and compliances and can help you save money on tax. They will evaluate the financial structure of the company and suggest ways to efficiently manage their tax burden. This can be done through making investments, augmenting the financial framework, etc.
For instance, the role of a medical tax accountant is to prepare schedules for tax provisions, payments, returns and reports for your hospital or clinic as well as maintain the organisation’s tax database. They can help identify effective solutions to complex tax errors and issues arising from illegal tax savings, ambiguous tax filings, etc.
5. Financial Advice
Finally, an accounting firm can provide valuable financial advice such as whether to make an investment or not, how to choose a lucrative investment plan, cost analysis at the time of expansion, mergers, acquisitions, etc.
In addition to the above, an accounting firm also aids in SMSF compliance and adherence to other regulations – helping businesses improve operations, grow and make strategic decisions.
