Having established that your company is in dire need of an accountant, it is vital to narrow down your key areas of focus. The best time to evaluate and plan your financial year is at the beginning of the year. There are crucial areas that you needs to address to ensure the productivity of your company. Some of these topics include your growth plan, places to cut costs, and even the investments that will not negatively affect your business.
The growth of your company
During the evaluation, you may have noticed some weak areas in your business that need trimming. You can even decide to make significant changes in your company. This move can easily affect your turnover and even impact your taxes, creating a liability. Such changes can include partnering with a different company, opening more branches in other areas, retrenching or employing more staff. The above changes are necessary shifts that can shift your company’s paradigm. Thus, have this conversation with your accountant to know which move will be best for your company. Professional accountants central London firms offer can track your progress and determine your business’s status and even assess your cash flow.
Finances
Every business runs on cash. How well you use or save this money will determine the success of your business. Budgeting helps you narrow down your expenses to avoid overspending. Your accountant will help you strategize on your cash flow, CSR activities and even loans. In business growth, sometimes, funding for greater projects will be costly hence the accountant will guide you on whether to get a loan, invest first, or refer you to lenders who are relatively cheap.
Taxes
Tax compliance is the most crucial aspect in your business. Complying with the tax laws and regulations will help you be on the good side with the government. Discussing this with your accountant will help you know of the new taxes that can affect your business, file, and remit them. Ask your accountant to explain to you your tax obligations depending on your business. Tax obligations include Excise taxes, Payroll taxes, and also Corporate taxes. To comply with your taxes, ask your accountant to provide a list of everything needed from you.
Inventory
Keeping a portfolio that shows you how you file your taxes, measure profitability and even how you order and restock your products is good. Discuss with your accountant the type of records you ought to keep. Records can include General Ledgers, Licences and Business Permits. Make sure you enquire about how long these records should be in storage in compliance with tax legislation.
Risk management
Most companies do not have a plan for a rainy season. Every business must experience downtime, and without proper preparation, this may deem the company bankrupt. Ask your accountant about services that you can deduct in case of such an incident. Your accountant will guide you on which tax deductions you are likely to get. He/she will also guide you on how to control the risk by using avenues like insurance.
