How an accountant can help your small business be more proactive

Tax can be difficult. It can also be time consuming. Most small business owners would acknowledge that they know little about tax – and that’s fair enough. Unless you’re running a tax business, there’s no reason for you to be an expert. But lack of knowledge can lead some small businesses to bury their head in the sand and ignore tax altogether, and if there’s one organisation no business can afford to ignore, it’s the ATO!

Working with your accountant makes it easier to understand what your business is doing well and what it’s doing less well. That goes beyond just looking at the numbers and involves getting behind the numbers to understand what the behaviours and drivers are that are producing those numbers, such as staff productivity and morale.

 

Your accountant can also focus on your longer-term objectives and help to guide you towards your goals, which might be to expand your business organically, expand through acquisition or look to exit the business through sale or family succession.

Finally, your accountant can also help you get a handle on your cash flow. Sitting down with your debtors list will help you understand why sales aren’t turning into a brimming bank balance and then you can devise strategies to bring your debtors list under control as well as finding ways to match the cash that’s coming in with the cash that’s going out.

This advice is of a general nature. Please speak to your tax professional for advice tailored to your individual circumstances.

Mark Chapman

Mark Chapman is Director of Tax Communications for H&R Block Australia. He has been a tax adviser specialising in advice for individuals and small businesses for over 20 years, in both the UK and Australia. Mark is a Chartered Accountant, CPA and Chartered Tax Adviser and holds a Masters of Tax Law from University of New South Wales. To find out more about how H&R Block can assist your small business, visit www.hr.block.com.au

 

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