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Small Business Success: Why Accounting is Key

Posted March 12, 2013 by Lewis R Humphries to Small Business / Entrepreneurship 1 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

In a strained economy, it is the smallest of details that can determine success and failure. While marketing, sales and customer services all have the potential to both save money and generate profit for your brand, however, it is professional accounting that holds the key to a long term and prosperous commercial future. Through the use of a reputable, industry renowned chartered accountant, it is possible to engage in long term financial planning and ensure that your business is ran within tight fiscal boundaries.

3 Ways in Which Good Accounting Can Trigger Small Business Success

While this theory is solid, however, how exactly can good accounting contribute towards sustainable business success? Consider the following facts: -

Staying in Touch with Complex and Changeable Financial Laws: The business world is evolutionary, as are its accepted practices and the laws that govern transactions. Keeping in touch with these breaking trends can be a difficult challenge, especially when you consider how day to day operations can consume your time as a business leader. By employing an experienced and qualified chartered accountant, however, you can appoint someone who has an in-depth understanding of tax legislation and a broad knowledge base from which to work from. As a result, your firm can adopt the relevant tax structure and minimise its liability over a prolonged period of time, without ever falling foul of the law.

Diversify and Create New Revenue Streams: One vital task that chartered accountants perform is forensic accounting, which enables practitioners to analyse your businesses finances and identify ways of boosting profitability. While this may lead to the implementation of several cost cutting measures, it can also empower you to diversify revenue streams and increase the amount of money that you make in bottom line profit. Whether this is achieved through the development of new sales outlets or by selling strategically priced share options that are in line with the companies valuation, it can significantly boost turnover and create new methods of accumulating money. This is why hiring a chartered accountant should be considered as an investment, especially in austere economic times.

Develop an Enticing Benefits Structure: The world around us is changing, with the result that today’s employees have different motivations for working than their predecessors. An inflated, bottom line salary is no longer the determining factor in retaining and attracting top industry talent, as modern workers are also concerned with pension plans, healthcare considerations and an employers ethical standing. They also want to be empowered with influence and responsibility, and a chartered accountant can help you to adapt your small businesses bonus and benefits structure to make it more compatible with modern demands. By thinking innovatively and changing the way in which financial incentives are presented, you can use creative accounting to build the most productive work force possible.

The Last Word

While it is natural for businesses to avoid costs during the current economic climate, there are instances where speculation may increase their long term growth prospects. Hiring a chartered accountant is certainly a practice that can deliver rewards, both financially and in terms of building a skilled and talented team of staff.

About Lewis R Humphries: This article was written by Lewis, who is a financial blogger and researcher from the UK. He also understands the intricacies of small business management, and recommends Price Bailey as a leading chartered accountant service provider .

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