How Tax Accountants Help Small and Medium Size Businesses.
When we create a business, we immediately need to become aware of the numbers behind our venture. We must understand how much money is coming in and going out to understand how our business is performing. However, most people who have the vision and desire to create and run a business have skills in other areas. This necessary task appears dull or frustrating and we can avoid doing the work required to know our bottom line. If we do not understand that, how can we steer our business to success?
Running a business in a vibrant city like Melbourne provides excitement and satisfaction but it also involves hard work, tough decisions, and the need to make courageous choices. In an article in Fund squire entitled, Business Start-up Statistics Australia (2021 Update) we are advised that:
- 42% of start-up businesses fail because there is no market need for their services or products.
- 29% failed because they ran out of cash.
- 23% failed because they didn’t have the right team running the business.
- 19% were outcompeted.
- 18% failed because of pricing and cost issues.
- 17% failed because of a poor product offering.
- 17% failed because they lacked a business model.
- 14% failed because of poor marketing.
- 14% failed because they ignored their customers.
The rate of attrition may slow for established business, however continued survival and growth is severely impacted if we fail to keep planning or adapting to change. There are extra-ordinary circumstances like COVID-19 in 2020 that test businesses great and small in a way we have never seen before. This particularly applies to Melbourne businesses that had to close or completely rethink their mode of operation during the extended lockdown. Too many businesses did not make it through, and we are still feeling the effects in 2021.
How an Accountant keeps your business operating at its best.
Thankfully, there are people for whom numbers, formulas, forecasts, and spreadsheets are an absolute joy. They’re as passionate about these often-mystifying aspects of our business as we feel about our enterprise. Top of the list is your Tax Accountant Melbourne.
Starting a business in Melbourne.
It is crucial that you create systems at this stage to help you keep track of all the financial aspects.
An accountant can help you to:
- Determine the best business structure.
- Work out the financials in your business plan.
- Choose the best accounting software.
- Set up appropriate bank accounts.
- Comply with industry-appropriate Government regulations.
- Track your expenses on a daily basis.
- Keep your personal and business expenses separate.
- Track your way through GST, Taxation and other financial responsibilities.
For established Melbourne businesses.
At this stage, maintaining you accounting system is key to your business survival. Your Accounting firm Melbourne helps you to:
- Pay yourself and your employees consistently and appropriately.
- Understand your financial statements.
- Manage company payroll and payment processes.
- Manage Tax payments throughout the year.
- Create Financial End of Year reports.
- Compile and submit paperwork in a timely manner to the ATO.
- Provide a sounding board on any financial aspects.
For Melbourne businesses wanting to grow:
This is another stage when, if not managed well, your business can suffer instead of succeeding. Your Accountant can:
- Provide vital information on cash-flow patterns, stock management, pricing, and financing.
- Advise you on property and equipment leasing or purchase.
- Set up your accounting systems for Auditing purposes.
- Keep you on the right side of the ATO and avoiding being audited.
- Prepare financial forecasts to help you make confident decisions.
- Assist you to create a business budget to support your desired goals.
- Help your business thrive as it expands.
In short, you Accountant helps you to manage every aspect of your business by knowing and understanding your financial health so you can better weather the vagaries of running a business.