Box ticking accountants are dangerous
Wednesday, March 1st, 2023 in: Advice
Hey, business owners! Are you considering hiring an accountant who only focuses on the ‘compliance’ work? Well, let me tell you why it’s not the best idea, and how the Profit First method can help your business thrive.
Firstly, an accountant who only does compliance work can not only limit how tax efficient you can actually be, he/she will stop you from truly understanding your numbers. Compliance is important, it’s only the foundation level though. If you have any ambitions to grow a business that serves you and your family, You also need advice, support and accountability to really move forward . They should be able to analyse your financial data and provide insights to help you make informed business decisions. It is so key to understand the story of your business in numbers. The numbers don’t lie!
Secondly, compliance work can be time-consuming. An accountant who is solely focused on compliance might miss the bigger picture. They should be able to help you create financial forecasts, identify areas where costs can be reduced, and develop a budget. If all of their time, energy, focus and resources is on the essentials then you are not really getting any added value from that relationship.
Now, let’s talk about the Profit First method. It’s a simple and effective way to manage your finances. With this method, you prioritize profit over expenses. Instead of waiting to see what’s left over after paying expenses, you allocate profits first. This approach ensures that you always have enough money to cover your expenses, while still making a profit.
The Profit First method also helps you identify areas where you can cut costs and increase revenue. By regularly assessing your financial situation, you can make informed decisions about your business.
In conclusion, compliance work is important, but it’s not the only focus your accountant should have. Look for an accountant who can provide financial advice and help you grow your business. And, consider implementing the Profit First method to help you manage your finances effectively. With the right accountant and financial management approach, your business can thrive!
Learn more about Profit First here