When you start a business, you expect it to grow and become bigger. Once your business reaches a certain size, you’ll have to do more than book-keeping. This is especially true if you have partners or investors. They will want to have detailed reports generated at the end of the year in order to scrutinize the business and make decisions on future strategies.
Accounting isn’t just limited to managing your income and expenditures. These are the sure signs you need professional accountants in your business:
1. When Your No Longer Have Time to Do Your Accounts
Once your business gets too big, you reach a point where you no longer have the time to sit down and balance your books. You have clients to meet, products to inspect and deliver, production lines to keep track of, quality standards to control, staff meetings and so much more.
When this happens, you need to start delegating tasks. Your bookkeeping duties and tax-related tasks can be outsourced to a professional accountant. That way, you’ll be able to focus on the tasks that matter the most.
2. When You Need Someone Who Knows Taxation
As a registered business in Malaysia, you have to declare your income to the authorities on an annual basis, at which time you’ll have to pay taxes. However, company taxation can be quite complicated as you may be required to pay more than one type of tax, depending on what business you’re running.
A professional accountant will be able to advise you on that and ensure that you don’t evade your tax payments. Additionally, your accountant can also calculate your tax deductions and discounts, if there are any. Tax season doesn’t have to be a nightmare anymore.
3. When You Need Advice on Profits
A professional accountant has a very clear understanding of your finances. Therefore, they will be able to advise you on how to maximize your profits by eliminating non-productive aspects of your business, or restructuring it. For example, if you’re spending a lot of money maintaining a piece of machinery that doesn’t do much for your product, then you’ll be informed of that by a responsible accountant.
4. When You Need to Trade Assets
If you need to sell off or buy valuable assets for your business like property, vehicles or heavy machinery, a professional accountant is needed to get your financial paperwork in order. An accountant will be able to guide you through the process so that you can minimize costly mistakes and reduce the administrative costs when selling or buying.
5. When You Want Accreditation or Certification
Certain certifications and accreditation will allow your business to expand to different markets. It will also increase client and investor confidence. Some of the standards in these certifications require an audit of your accounts, and this is where your accountant can provide detailed information to the accessing officers.
6. When You Need to Report to Your Investors
Preparing an annual financial report is no mean feat. Rather than spending days or weeks on it yourself, hand the task over to a professional accountant who will be able to prepare all the necessary financial charts and schedules for the annual general meeting (AGM).
A professional accountant will definitely be a good investment for your business to grow even further. Here on Kaodim, there are many professional accountants that can assist with keeping your financial records in check.
written by Michelle Chee