To run a business effectively, you need a qualified accountant. As a business owner, you’re likely to face financial challenges along the way; that’s pretty much normal. Due to this, many astute entrepreneurs understand the importance of managing their finances efficiently. However, without the assistance of a qualified accountant, none of that can be accomplished.
As you navigate complex SARS tax regulations and reduce costs in your business, professional accountants will help you focus on what’s most important: running your business and growing it.
In this blog, we examine the benefits of outsourcing to qualified accountants. However, before we proceed, let’s answer this crucial question:
What makes you a qualified accountant?
The term “qualified accountant” refers to an individual who has passed all the necessary exams to manage and communicate financial information within an organisation.
As an example, Mashudu Makwarela, the founder of MGT Accounting and Consulting Chartered Accountants, is a qualified Chartered Accountant. She has the necessary knowledge and experience to provide the best financial advice to her clients. Her expertise is invaluable for any business looking for sound financial advice. Many government officials and business executives rely on her for financial information. It is no surprise that she has built her accounting firm almost exclusively through word-of-mouth marketing.
1. Get access to expertise on best practices and efficient processes
It is important to keep in mind that accounting is a complex and regulated profession. Therefore, it is crucial that you always choose accountants who are experienced and qualified in order to ensure that your finances are handled properly and in accordance with the law. You may be able to save time and money by working with an experienced accountant like Mashudu.
2. Improve your cash flow
It is possible to improve your cashflow without implementing systems that will assist you in sending out invoices on time. It is likely that you will let this important task slide if you are doing your own bookkeeping. Outsourcing invoicing to an accounting firm is the only way to ensure that you are paid on time by your clients.
It is possible to reduce the amount of time required to chase payments by using automated systems such as payment reminders and automatic billing systems. Working with a team of accountants from MGT can help you set up the right systems and processes to maximise the efficiency of this process.
3. Impress investors
There will be times when you will want to expand your business and sell more products or provide more services. If you wish to accomplish any of these goals, you will require financial muscle, which is something only investors can provide.
Remember, investors can provide you with the funding you need to expand your business, but you should be aware that they will be looking for a return on their investment. Therefore, you should also be prepared to share some ownership and control of your business in exchange for their investment.
If you outsource to a qualified accountant, you will be able to attract the right investors.
4. Save money
Small business owners often worry that they cannot afford to outsource accounting functions. They are unaware that there are other accounting firms that are affordable for small businesses. To that end, having a qualified accountant on your side can help your startup to budget well and reduce expenses.
Additionally, there are tax rebate claims available to all small businesses. For the years 2022-2023, SARS has set the primary rebate at R16 425. Secondary (for individuals 65 and older) is priced at R9000, while Tertiary (for individuals 75 and older) is priced at R2997. An accountant could cut your tax bill considerably by claiming in full.
Your business will benefit from privileged insight into benchmarking data when you outsource to qualified accountants since our accountants will capture the performance metrics of other businesses in your industry. This will enable you not only to make informed decisions, but also help you to assess your financial performance against your competitors. For instance, an accountant will use your revenue, profit margins, and overhead costs to evaluate your performance in your industry.
For more information on how we can help your business, email firstname.lastname@example.org.
MGT Accounting will help you manage all aspects of the financial side of your business, from Bookkeeping and taxes to forecasting future earnings and growth.