Since cash is the lifeblood of any business, it’s important that you address any cash flow problems that come up. This is easier said than done as cash flow problems can be rather tricky to deal with. One of the best ways to address cash flow issues is by working with an accountant. Now, some of you may be a little sceptical about this. To help convince you, we thought it would be useful to have a short discussion on how accountants can aid you. If this is something that you want to learn more about, read on for seven notable ways accountants can help resolve your business’ cash flow problems.
Sometimes you need a second perspective to see where you are wasting money. Hiring an accountant to review your business’s finances will give someone else the opportunity to find the positive changes that you could make to bring in more revenue or reduce expenses. Either way, it will make the business feel less cash strapped.
Optimising Tax Relief
We all have to pay taxes, but working with an accountant can help you make the most of the relief available. As a result, the tax burden on the business will be reduced and there will be more cash available because less of your money will be going towards taxes.
Creating Additional Funding Options
There may be financing opportunities that you are eligible for, either through loans, grants, or even through a credit facility. An experienced accountant should be able to identify your best options and help you process the required paperwork.
Improving Financial Forecasting
If your cash flow is seriously squeezed, it might not be because of financial difficulties; it could be due to bad financial planning. Working with an accountant to fine-tune your projections can help you have a good sense of where your business needs to go next.
Providing More Accurate Books
It’s easy to get overwhelmed if you don’t know how to manage a business accounting. Hiring an accountant will help you update your bookkeeping system so that you can see what your sales are like and where your money is going, saving time and money.
Improving Tax Planning
While it may not seem all too significant, proper tax planning can go a long way. There are a number of payments and filings that you need to make as your business grows, including VAT returns and annual tax returns. Accountant support can not only help you make sure that you meet the deadlines for those accounts, but it can also help you integrate those payments into your long-term planning so that you aren’t impacted by those costs suddenly.
Offering a New Perspective
Lastly, professional accountants can offer valuable insight that will drastically improve your business. You may not realize this but your accountant’s experience and knowledge can completely transform your business. When business finances seem to be heading south, it’s easy to feel overwhelmed. If this happens, a strategic decision may be all you need to turn your situation around.
We hope this article proves to be useful when it comes to helping you understand how accountants can help you fix your cash flow problems. As you can see, professional accountants allow you to optimise your cash flow. And while you may still be hesitant to work with an accountant due to the costs attached to their services, remember that they will help you achieve your business’ long-term and short-term goals.
BarettStacey Accounting is a friendly, approachable team of accountants and bookkeepers in Bristol, offering quality financial services to help businesses stay on top of their finances. If you are looking for accounting and bookkeeping services, reach out to us today!