Running a business is a great and exciting prospect, especially when you first start out. However, as you expand, you might find yourself needing some business advice to help you get where you want to be.
You’ll know that accountants are a great source of information and help for things like accounting, financial reporting, and taxes, but the reality is that some accountants are capable of helping you with so much more, from cashflow management and financial analysis to strategic planning. Here’s why.
Deep financial expertise
A solid financial foundation at the heart of any successful business requires business owners to understand documents like financial statements, cashflow forecasts, profit margins, and balance sheets. But these are complicated reports, which require training or experience to fully understand – preferably both. And they’re important to understand so you can make fully informed business decisions.
Accountants are trained to understand the intricacies of these types of documents, interpreting and translating the data for you so that you can be confident that the information on which you’re basing decisions is accurate and reliable.
But accountants won’t just help you understand what the numbers are, but rather what they mean for your business as well. This insight is crucial when making decisions about investments, cost-cutting measures, or exploring new revenue streams. With an accountant, you gain a partner who can guide you toward decisions that will improve your bottom line and ensure long-term sustainability.
A holistic view of business
In addition to their financial expertise, accountants bring a holistic view of your business. This is because accountants are trained in or at least knowledge of nearly every aspect of a company’s operations, from payroll and procurement to tax strategy and regulatory compliance. As such, they have a unique and comprehensive understanding of how different parts of the business are interconnected.
Because accountants see the whole picture, they can provide advice that considers not only immediate financial gains but also long-term impacts on the business.
For example, when considering an expansion or a new product launch, an accountant can assess the financial feasibility while also considering the operational challenges, tax implications, and potential risks. This holistic approach ensures that you are not just chasing short-term wins but building a sustainable success strategy.
Strategic thinking and problem-solving
Accountants are strategic thinkers, not just looking at what the numbers say but what they mean – they analyse trends, forecast future scenarios, and help businesses navigate through uncertainties. Whether you’re facing a cashflow crisis, exploring new markets, or trying to improve profitability, an accountant can provide the strategic guidance you need to make informed decisions.
Moreover, accountants are natural problem-solvers. They’re used to identifying inefficiencies, uncovering hidden costs, and spotting opportunities that others might miss. By leveraging data and analytics, accountants can help you optimise your operations, reduce waste, and increase profitability. Their analytical mindset and attention to detail make them invaluable when you need to solve complex business challenges.
Trusted advisers with a long-term perspective
One of the most significant advantages of having an accountant as a business adviser is the trust and long-term perspective they bring to the table. Accountants prefer to work on a long-term basis with clients to build proper and productive relationships, unlike some business consultants who may provide advice based on short-term gains or limited engagements.
Most accountants will be there with you through every stage of your business, from startup to growth, to maturity and beyond. This long-term perspective allows them to provide advice about solving immediate problems and positioning your business for ongoing success.
Accountants are much more than number crunchers, so why pay one person to do your accounting and taxes and another for business advice?
At HW Associates, we provide both types of service. Get in touch to find out more.