Why Accounting Services Are for Everyone
Why is it that some people assume that accountants are only usually hired by huge multinational corporations, or by accounting firms? This is a totally wrong-headed attitude, because as you’ll discover when you read on, accounting services are for all businesses big and small, covering just about every sector you can think of. If it’s a business of any sort that either maintains a budget or makes profit from the exchange of goods and services, then it needs an accountant.
There is no profession or industry that is above hiring accountants, not even accountants or lawyers! Expert accounting and financial advisory for lawyers, for instance, is among the most important services that law firms count on. So, why are accounting services so important and universal? Let’s take a closer look:
Yes, Even Accountants Needs Accountants
Accounting firms are businesses, too, and they have to hire in-house accountants to handle their own books and accounts generated from helping countless other businesses and individuals to do theirs.
In-house accountants are often used as consultants and creative problem-solvers, too, brought in to help solve tricky issues on client accounts that they previously haven’t worked on. Their “fresh eyes” can be just what some difficult cases need when no one else can crack it.
Small Businesses Have to Get Tax Returns Right, Too
The tax system in Australia isn’t exactly forgiving. While technology has been implemented to try and make things easier for sole traders and runners of small businesses, it is still a great challenge for them to dot every “i” and cross every “t” without any kind of error. The ATO sees a wrong return as a bad thing regardless of who it comes from.
Therefore, accounting services are vital to help those individuals and businesses to get the reassurance and peace of mind that they need, especially during tax return season.
Proper Accounting Helps Companies to Strategise
Companies big and small have to be able to effectively plan their next moves for growth and expansion. A good accounting service will help them to do that by giving them accurate numbers reflecting their true income, outgoings, gross and net profit, and more.
For many, the most important part of the annual accounting is discovering where money has gone on expenses. For strategic purposes, it’s critical that companies know where and how they might cut expenditure and/or channel money more effectively. They may have found that huge expenditure on marketing, for instance, was not yielding the profits they had hoped. They might change their approach in the following year as a result. They may equally discover that they have a lot more cash available than they thought, and can thus bring on some new team members to help share the workload.
Accounting Delivers a Comprehensive and Impartial Performance Review
They do say that numbers don’t lie, and when they’re delivered from a competent accounting service, that is certainly true. Numbers do more than just give one an idea of how much money they or their company has, but also tell a story of how well a company’s management and leadership team is performing, and can do so in many ways.
Imagine a large firm bringing on a new CEO in 2022 to help rebrand, grow and redirect the company in the post-pandemic climate. Hopes were high until the results of 2022-2023 and 2023-2024 accounting became available. They found that profits were falling, expenses were rising, and that the company was in an increasingly tense position. What should they do in that case?
Accounting is needed for this kind of performance review because it’s one that even the most silver-tongued CEO couldn’t talk their way out of.