Should Accountants Be Proactive?
In today’s world, most businesses do reactive accounting. This means that they produce a set of accounts and financial records only when they are legally required to do so. At times such as year-end (those two little words that make your blood run a little colder), you can be so busy dealing with the day-to-day issues of running a business, when you do finally get round to doing the task, it’s almost too late.
By working with a proactive financial advisor, you can just sit back and wait for the rebates to roll in. Proactive accounting allows you to stay on top of your business finances. By taking this approach, you can identify where money is leaking out of your business. Easily keep track of who has been paid, how much and when as well as who has paid you.
Here are the top benefits of working with a proactive accountant.
1) Get your year-end done easily
As mentioned above, year-end can be a real thorn in the side of business owners. Year-end is vital for tax and legal purposes but is not particularly useful for business owners. A proactive accountant will have everything in place by the time year-end comes around, ensuring the documents are submitted in good time.
An experienced, proactive accountant will also be up-to-date with all the latest rules and regulations. It’s important to ensure your business is registered in the correct way and, above all, give you the reassurance that your accounting has been done correctly.
2) Receive help and advice
It’s not just the year-end accounts that a proactive accountant can help you with. We are able to help you make the most of your annual turnover and even offer advice on anything from more effective accounting systems, to sensible investments and exit planning.
It’s important to remember that your accountant should be just as approachable as they are professional. This means that you should always feel comfortable in going to them for help, support and advice throughout the year, not just at year-end.
3) Give you the chance to plan ahead
Having a proactive accountant means that things get done in advance. Having your year-end accounts done in good time gives you the opportunity to budget and plan. Something that a lot of business owners don’t have a lot of time to do is set out their objectives for the year ahead. With this time, you can ensure that any potential problems are identified and dealt with in advance.
Another benefit of having time to plan ahead is ensuring the cash flow remains healthy throughout the year and you are fully aware of what you can spend and where you should save. It will allow you to minimise impulse buys and identify the opportunities for growth in advance.
What’s become known as proactive accounting uses automation and other technology to complete and manage tasks that are normally done at a period’s end into normal day-to-day activities. The impact of proactive accounting can be felt beyond just relief for the finance team. Your proactive financial advisor can improve real-time reporting and keep the finance function in step with the wider business.
Stonehouse Accountants are a well-established practice based in Peterborough. We specialise in areas such as proactive B2B accounting and accounting for Limited Companies. If you have any further questions or would like to speak to us about taking care of your books then please get in touch with us today.