In order to run a healthy profitable business, entrepreneurs need to have an understanding of their business. In order for a business to be successful management should have a firm grip on the numbers. Attention to tax structuring is vital to compliance and to avoid penalties. Understanding the importance of how to maximise cashflow, to finding out what you can deduct from taxes, among other things is critical to business success!
Here are some reasons why entrepreneurs benefit from accounting.
1. Working capital management which is the healthy movement of money between debtors creditors and stock is very important for cash flow management. Keeping a steady view of how the business is turning over stock and managing cash flow between debtors and creditors is important to maximise liquidity.
2. Revising financial strategies, questioning deviations from budgets, balancing books and tax compliance makes the difference between success and failure. Therefore, a company’s success depends largely on sound accounting.
Managing accounting policies like how to account for stock movement, manufacturing, marketing, cost accounting are all important aspects that management should have a broad view of – having the right partner to guide you is what makes the difference.
We can help entrepreneurs create and manage detailed budgets for their businesses. Understanding how much money is coming into and going out of the business, you’re better equipped to plan for expenses. It is critical to know how much money is left after expenses have been paid, in order to plan for profitability. Accounting helps entrepreneurs prepare for tax season and eases filing income taxes. With proper accounting and bookkeeping, you’ll have all the records of your business’s earnings and expenses filed away, which will make filing your income tax much more efficient.
For a meaningful discussion feel free to contact us to assist you with any financial aspect of your business!
