Preparing financial reports, preparing tax returns, and ensuring financial documents are accurate and compliant with relevant laws are among the key accounting services that your business will need. While very important, your choice of a business accountant shouldn't start and end with their ability to do these tasks.
You want an accountant that has commercial awareness. An understanding of your business model, who you serve and how you make money, as well as an awareness of what is happening in your industry and business market, are the main elements of commercial awareness.
Why should this commercial awareness matter in the context of who you hire to execute your commercial accounting functions?
Quick to Take Advantage of New Ideas
Is there a new way to improve the efficiency of your accounting functions? Be it a new accounting software or implementing batch processing of payments, a commercially aware accountant will identify and implement these ideas to improve efficiency.
You want an accounting services team that is proactive and which will identify and solve problem areas that adversely affect your efficiency. The benefits of this improved efficiency will more than often show in significant cost savings and improving your bottom line.
Mitigating Impact of External Actors
A change in the economy, changes to tax procedures and legislation and other external factors will certainly impact your business's accounting functions. If the impact is a positive one, then your accountants should be able to leverage and maximize these changes for your benefit.
On the other hand, you want to be as prepared as you can be and mitigate the impact if it's likely to be an adverse one. For instance, your accountants can work around the clock on your taxes before the new legislation comes into effect.
Bigger-Picture Goal Setting
The accountant you hire to provide accounting services should take the time to understand your business goals, both short- and long-term. This information will help to align all your commercial accounting functions with your goals for the business.
Commercially aware accountants will plan how to maximise cash flow for your entire financial year. If your plan is to expand the business, you will need to attract some capital, and your accountants can help by ensuring that your financial statements are all in order. Lenders and investors alike will consider these financials before committing to giving you this capital.
For the reasons highlighted and more, having accounting services experts with sound commercial awareness will be an asset. Ensure you leave your commercial accounting to the right people.