Accounting services are a necessity for the survival of a business and can even save you tons of money by increasing business efficiency and allowing you to make better financial decisions by providing valuable information such as the assessment of business solvency and productivity.
Accounting is truly the heart of the organization – if the company’s funds aren’t managed properly, it will eventually lead to the failure of the business. While many small business owners believe they can manage their company’s finances on their own, they often realize too late that there aren’t enough hours in the day to handle every aspect of accounting while trying to grow the business.
Your time
Never forget the old cliché, “time equals money,” as this especially true when it comes to running a successful business. If you aren’t spending the majority of your time managing the company’s finances, you’ll be able to spend it much more productively by networking and winning new clients, maintaining relationships with existing clients, managing and motivating your employees and other tasks that are crucial to the growth of your business.
Hiring an accounting services firm will allow you to use your time wisely, saving money over the long run.
Taxes and government regulation
Handling taxes and trying to adhere to complex government regulations are a huge headache, even when you don’t have a business to run. By using accounting services, you’ll save money on taxes and avoid the stress that comes with it.
Whether you have a small or a large business, there are often complicated tax issues involved and trained accounting experts are required to keep up with the tax laws that are constantly changing. Can you imagine the time it would take to keep updated on all of this in addition to trying to figure out where to spend, where to cut back and everything else?
Planning Budget
Budgeting is a core factor in every business. Planning budgets help business to make strategies, save money and noticing any expenditure exceeding the budgeted amount. To make a budget you need various previous records. In order for these documents to be available, they must be very well maintained through accounting since they are the basis of planning and making budgets.
Management Accounts
In order to plan for growth, you will need to have up-to-date, reliable financial information. We provide monthly and quarterly management accounts to help business owners and other decision makers to understand how the business makes money, how much products cost, and how to plan for profit and growth.
Having timely management accounts will also help you to identify any potential problems at the earliest possible opportunity and we will advise on remedial action if required.
Banks and lenders
In order to get any loan from the financial institution, you must be able to present your financial status in acceptable order. So in order to make it, you need to have proper accounting system so as to present various books of records such as profits recorded, assets and liabilities, taxes paid among others. Financial institutions will scrutinize them carefully before landing to a decision of awarding loan.
Keeping Records
Every business needs to keep records and act upon them in order to run smoothly. In this case, accounting plays a big role in keeping records. All records are collected, organized, and interpreted in order to be communicated to the end users, therefore helping in making an economically viable decision which will lead to the positive productivity of the business organization.
Decision Making
Any economic or any decision regarding the business organization is made depending on the financial statement of the organization. A financial statement is as a result of accounting. Without proper accounting in a business organization, the executives can't make a sounding decision since they will be operating in blindness hence making it impossible to achieve organization objectives.
Information to Investors
Financial statements and accounts are used to represent the organization to the stakeholders such as debtors, creditors, government, and investors, customers and employees. Many investors will run away from your organization if you lack financial records and accounts to presents so as they can know the business progress.
Reporting Profits
The key objective of any business is to make profits. Every business, being a small or large organization, must maintain accounting system so as they can ascertain what they are making on their business transactions. This also enables interested parties to make the decision on the progress of the business productivity.
Monitoring Cash flow to Keep You Ahead of the Game
We can advise you of the peaks and troughs in your cash flow, monitoring actual results against budgeted performance. We can highlight if and when any banking covenants may be breached so that the business can take fast remedial action. A good year’s results may result in a high corporation tax bill so we can firstly include such payments in the cash flow projection for next year and secondly call in our tax advisory team to see how the tax bill can be minimised.
Minimising Cash flow Risk in Expanding Businesses
In the present economic climate a meeting with the bank manager can often end with the words “Can you please put together a financial forecast for the next twelve months…..and how soon can you deliver it?” Or an expansion plan team may ask the accounting and finance department “how can we finance our new project out of existing cash flow?”
Financial Forecasting to Keep You in Control of Your Business
All business owners have a “feel” for their business but not all will have regularly updated financial forecasts. Sign up to Skytrax Accounting and Payroll Outsourcing Services, and we can provide you with regular updated cash flow projections based on rolling forecasts for the next one, two or three years.
Minimising Cash flow Risk in Expanding Businesses
Any expanding business will have greater demands on cash flow, as more and more cash is tied up in stock and debtors. This is technically called “overtrading” and presents a cash flow management risk to many businesses, especially those that expand quickly after a period of recession. Regular advice and recommendations from our Outsourcing Team will allow you to control the risk as you maximise the returns to your business.
Cash flow management also extends to arranging payment runs for suppliers and credit control services for customer accounts.
