Farwah Jafri | September 5 2021
An accountant is one of the most crucial assets a business can have in its arsenal. A lack of management over one’s accounts is a major reason why startups fail or struggle in their early years. An accountant helps a business manage its finances and a lot more.
This article will help explain the benefits of hiring an accountant on demand instead of an in-house accountant.
An accountant oversees, manages, and maintains the financial records of a business. Their primary duties usually include aspects such as checking the accuracy of financial documents, preparing financial reports, ensuring taxes are paid on time, and maximizing profits by coming up with efficient financial strategies, among other crucial responsibilities.
Now that we’ve got a basic run-down of what accountants do, and why hiring one may be important for you, here’s how accountants on demand can help your business run that much more efficiently.
Failing to address cash flow issues early on can cripple a business by leading to insolvencies or a negative cash flow. This causes a business to halt or lose profit which causes them to become unable to meet their expenses and liability. Here is where an accountant on demand comes in, as offered by Monily.
Accountants identify issues in the cash flow early on and quickly come up with an appropriate financial strategy to get more capital in the business so it doesn’t affect the financial health of the business.
One of the most important parts of a business is meeting your business objectives, as such, Key Performance Indicators (KPIs) that help to analyze how a business is performing when it comes to meeting these objectives. An accountant can help you set up ways to analyze KPIs in your business, such as monthly or annual reports. From here, these reports can be used to maximize efficiency so your business meets its objectives cost-effectively. If one of your objectives is to raise sales for a product by 15% over the next five months, then monthly reports can track increases in sales and see which month brought the highest and lowest sales, this allows them to see what can be done to maintain or change these patterns.
An accountant on demand oversees the finances of a business, such as timely taxes, loans, bank payments, debts, etc., making sure everything is in order and correct any errors that may be present.
An accountant can make sure there are no errors in your taxes. They report all information accurately, as the last thing you want is errors that mess up your tax returns. Adding onto that, an accountant has legal knowledge of this field. This means they’re up to date with all laws and can find ways to reduce or get you higher returns. This helps in avoiding any costly mistakes and saving money where it can be saved.
When a business expands, there are costs associated with the expansion. It is a costly move, requiring a large number of funds and if done incorrectly, it leads to a lengthy negative cash flow. However, an accountant on demand regulates your cash flow and optimizes it because of their knowledge of the banking industry.
They assist in securing the loans and funds you need for your expansion to be successful. Since an accountant’s job is also maintaining your records, this makes it easier for the bank. Once an accountant guides you in the proper documentation, presented in the right order, you can secure a loan for your business faster than you would if you attempted it yourself. They know the process of applying for a loan and how to ensure that the bank sees you as an investment.
An account also helps you assess the potential of a possible expansion. By measuring the benefits and disadvantages, they can help you decide how to go about expanding your business in the best way.
An accountant on demand is not just good with their financial and economical knowledge, they are also a great asset in finding you a good workforce. If you are losing 10% or more of your profit in inventory management, for example, an accountant analyzes these statistics and recommends the right inventory manager for you. With their knowledge and experience, they can see where your money is being lost and help you find staff and deploy strategies to fix it.
Monily’s accountant on demand service helps you understand the financial health of your business so that you may carefully assess the need to acquire a loan, manage your debt, and reduce late payments by making a viable payment plan.
For example, an accountant structures a debt program that caters to the needs of your business and simultaneously ensures your debts are in control and paid on time.
With their vast knowledge of laws, taxes, and handling capital, measuring your statistics against your competitor’s, an accountant on demand can offer you financial advice. If you want to invest in a new product, change your branding or marketing, or invest in PR, an accountant can help you weigh the pros and cons of any future business decisions your business may make and the best way to utilize them.
When you have an accountant on demand to manage things like record-keeping, taxes, accounts, cash flow changes, debts, loans, etc., you have a lot more time to manage other aspects of a business. This makes sure that all areas of your business operate well and run smoothly, as you turn your focus to them and have the time to overlook various elements of your business.
For a startup, struggles come with a business. Hiring an account on demand to take care of major aspects such as the ones we’ve gone over so far can be imperative to making sure your business operates smoothly. Most startups don’t last past the five-year mark, and one of the reasons is badly kept accounts.
See Also: Accounting 101 for Small Business Owners
Accountant on demand will not only help you streamline your finances but also advise on the strategic direction that your business should take to grow and thrive. You can find professional, experienced, and trained accountants, ready for your business at Monily! With industry-specific experience, these accounting professionals are better positioned to offer unique financial management solutions and ensure that your business is operating at its best leveraging the industry’s best practices.
Farwah is the Product Owner of Monily. She has an MBA from Alliance Manchester Business School, UK. She is passionate about helping businesses overcome challenges that hamper their growth, which is why she is working at Monily to facilitate entrepreneurs to efficiently manage business finances and stay focused on growth.