Modern businesses know that time is money and hiring a productive workforce can contribute to business growth. Entrepreneurs tend to multitask many jobs including business registration, tax requirements, and many more! In that sense, you may need an accountant to help you with managing your financial assets and making important decisions on money-related problems. That does not necessarily mean you need to hire a full-time accountant.
Ever heard of Cloud Accounting? A cloud accountant can help you in different steps of your business from creating your business plan to doing your tax requirements. Here’s what you need to know about hiring a cloud accountant.
For the budget conscious
Running a business on a shoestring is never easy. As a small business is budget-conscious, owners and managers need to do proper budget allocation to avoid exhausting all your resources. You need a guide in managing your financials and that’s what cloud accountants are made for.
Why cloud? Hiring a full-time in-house accountant can be beneficial in so many ways but can also cost you so much. A full-time employee also means providing the whole employment package – benefits, office equipment, office space, software subscription, and more while a freelance or outsourced employee can be paid output-based, hourly, or monthly.
It’s nice to have someone to consult your financials with all year round but chances are there will be quieter months for accounting which will result in high cost equivalent to low benefit. That equation doesn’t sound so good.
They are the expert in the field
Small businesses can be naïve about tax requirements. A cloud accountant, be they freelance or from an agency, will surely know what they need to do on a day-to-day basis. A good cloud accountant can save you from all the worries of training a newbie or someone who doesn’t know how a business runs. Most probably, these accountants will be your constant reminder in settling your tax requirements and will advise you to settle everything even before the deadlines.
Tip: When interviewing a candidate, make sure to discuss your business and confirm if they have experience working with a small business or a work-setup like yours. This will result to better understanding between you and your accountant before proceeding to business.
Cloud accountants work in the Cloud
There’s no clear reason why a business wouldn’t use cloud technology for their business. In 2017, there’s a significant growth [1] in the number of Australian businesses that adopt the cloud for major business purposes including project management, accounting, marketing, sales, and team collaboration.
The cloud allows both you and your accountant to work simultaneously and have access to data anytime and anywhere. Modern businesses surely convenience and efficiency at once and the cloud is that one good agent that enables you to do all the work while just sitting in your office. 83 percent of Australian accountants are using cloud in their practice [2] to streamline processes and fasten their services. If you are not tech-savvy enough, you might end up losing the game.
They look after your taxes and beyond
We find the idea of accountants endlessly crunching numbers during tax season normal. But an accountant’s job is more than just auditing and doing your tax requirements. They also work in the background all year round ensuring records accuracy, maintaining books, recommending ways to enhance revenues and profits, and more. You can surely find a friend in them when it comes to money matters improving your business’ financial standing.
They can give advice (on basically everything business)
After finally deciding to turn your idea into something real a.k.a your business, it’s time to face another complex decision for your venture: choosing the right legal structure for your business. Every business has different legal structures in which you should be careful in choosing. It’s wise to get advice from a legal and financial professional who’s knowledgeable enough to inform and educate you on the consequences that can seriously impact various aspects of your business.
How good are you at creating a financial strategy? You may own doing your books manually which usually other businessmen do themselves. That’s a good way to save money than hiring someone to help you do your books. But if you find yourself juggling bookkeeping with other jobs, let’s say you dedicate eight hours a day doing it, probably with a few errors, will cost you more time. And as the rule goes by in a business, time is money. Avoid wasting your time if you can just get an efficient partner who can help you with all the work.
Lastly, your cloud accountant can serve as your another set of fresh eyes and mind. It’s always good to have someone to discuss plans and strategies with, especially if you find yourself unsure. The partnership between a businessman and a cloud accountant will likely go smoothly when tasks are delegated correctly and collaboration are executed wisely.
Still confused how this set up works?
Account Tech is a team of cloud accountants catering to small and medium-sized businesses in Australia. Call us today for enquiries!
