As a small business owner or tradie, it is common that you try to do your trade accounting. However, it can be a bad idea; if you want to keep your business healthy and identify opportunity areas. Therefore, you should leave this matter in the hands of the professionals and hire an accountant. We know that this might sound like something you could be saving yourself, but that would be a tremendous mistake.
We cannot emphasize enough how much this will benefit your business, so we want to enlist reasons why tradies need a financial professional. So, keep reading this article to know why it would be a great option for your business.
- Maximize tax refunds
Tax seasons can be a little overwhelming for anyone not familiar with taxes. The worst part of doing this yourself without being an expert in the matter; will translate into losing money. Tax accountants know their profession and will know how to maximize your tax refunds. So, instead of thinking about accounting as something your tradie business doesn’t need, you should see it as an investment.
Remember that depending on the line of your business as a tradesperson would be the things that you will be able to claim in your tax refunds. Also, (in case you don’t know) overclaiming can result in paying fines, or getting a tax audit, and both are things you should avoid at all costs.
- Ensure you’re compliant with the law
Laws are changing all the time and not staying in tune, may cause you not to comply with them. Also, if your business is growing fast, you must ensure that your paperwork and practices comply with the law and that you’re not crossing a new tax bracket. Working with a professional in the field will help you stay aware of relevant implications.
Stay away from any financial situations that might negatively affect your business by working with a tax agent.
- Help to understand the figures
If you’re not familiar with the financial field, then keeping in tune with what your business requires can be extremely confusing. An accountant will help you understand the figures without problems and give you useful insight into the situation of your tradie business. That will give an informed panorama of things you should be focusing your energies on.
So, if you are having a hard time understanding the financial state of your business, then working with a financial professional is something you’re obliged to do.
- Frees up your time for other aspects of the business
You must invest your time and efforts in the topics you have expertise on. As a tradesperson, we can bet that you have a tight schedule, and adding more tasks is something you don't need to do. Also, by doing your accounting tasks yourself, you can get confused easier, and mix administrative and financial stuff, which can cause problems later. Get rid of the idea that you can take care of your books by yourself and leave that to a bookkeeper.
Delegating chores is an important skill that every tradie needs to do to ensure their business' health. You can’t do everything by yourself, and trying to do so would be a big no. Relax, trust other people, and let them help you to improve your business.
- Future proof your business
We all want to ensure the future of our business and know that it will be profitable, right? While we can’t ensure 100% the path our business will follow (due to external factors, like a pandemic), it’s important to make a structured plan for our business’ future. Accountants for tradies are a must to create a solid plan that will take into consideration several factors, like the cash flow to forecast your financial trajectory.
As well, keeping track of your financial situation will be a useful tool to make informed decisions and choose wisely.
We are all familiar with managing our personal finances, however, as a tradie, you shouldn't be managing the monetary situation of your business. Therefore, you must work with professionals in the field that will help you keep an accurate record of your incomes and expenses, go through the tax season, maximize your tax returns, and futureproof your business.
So, the best would be to trust someone with expertise in the field and leave the small business financial situation in the hands of an expert.
