Every new business owner wants to know the keys to entrepreneurial success in Australia. But how can accountants help?
Your accounting firm may not be the first port of call that springs to mind when considering growth advice for Australian start-ups, but let's look at five ways we can help with small business financial planning.
1. Business structure support
Should you operate as a sole trader, partnership, company or trust? Starting a business in Australia is a huge step, so you shouldn't rush important decisions such as these.
Each business structure has unique advantages and disadvantages that affect the amount of taxes you pay, your personal liabilities and the complexity of setting up your business.
Accountants can help you weigh up the pros and cons for each option and select the best structure for your specific circumstances.
2. Tax and auditing services
A 2017 Deloitte report found that 55 per cent of businesses believed Australia's tax regime was becoming more complex.
The country was ranked as having the third most complicated tax and compliance regulations in the Asia-Pacific region, behind only India and mainland China.
— Deloitte (@Deloitte) April 30, 2017
Experienced accountants are experts at navigating this confusing environment on your behalf, enabling you to focus more on growing your business.
3. Growth advice
The best accountants don't just provide tax, auditing and assurance assistance. They can also offer sophisticated growth advice for Australian start-ups through specialist business development services.
Effective strategic planning, budgeting, financing and business forecasting are just some of the keys to entrepreneurial success – and the right accountants can deliver all these services and more.
4. Cash flow solutions
More than one-third of SMEs have to dip into their personal savings to combat cash flow problems, according to data from The Invoice Market. In fact, Australia's small businesses are perpetually owed approximately $38,000 each.
Identifying cash flow problems and maintaining a steady stream of income to your business is vital in those early days as a start-up and beyond.
Accountants can provide comprehensive cash management and forecasting services to ensure you stay on top of your day-to-day finances.
5. Risk management optimisation
Australian businesses are exposed to multiple risks, including natural disasters, regulatory changes and supply chain disruptions.
The most recent global Allianz Risk Barometer highlighted the three main hazards for organisations operating in 2017: business interruption, market volatility and cyber incidents.
However, your start-up will face unique risks depending on its size, location, industry and other factors. That's why a tailored risk management plan from an experienced accounting firm is so important to protecting the value of your business.
Would you like to know more about how accountants can help entrepreneurs in Australia? Contact WMC Accounting for growth advice and other business services for start-ups.