There have been many businesses with a quality, “in demand” product range, a strong marketing plan, wide distribution network and dedicated employees that have struggled to consistently deliver the expected financial results, often resulting in the eventual closure of the business, and in extreme cases, bankruptcy. Analysis of the management of these businesses after the fact often reveals a common denominator i.e. the lack of a qualified business accountant to examine the financial management of the enterprise. Scrutinising the operational results that flow through from product sales is essential to identify opportunities for greater efficiency and cost savings, as well as areas of potential growth.
Enterprises that don’t undertake this type of analysis on at least a monthly basis often have no idea of the real financial situation, positive or negative, and consequently have no plans in place to counter any unexpected loss of revenue or change in market forces. This is the expanded role of accounting Brisbane in today’s business environment, and this can best be fulfilled by engaging the services of a business accountant.
Assuming that the business is already up and running with accounting systems in place, one of the roles of the business accountant is to assess the systems and look for opportunities for improvement that will provide quicker and more accurate reporting mechanisms from which management can make better decisions. The role might also include establishing budgets and cash flow projections including more efficient methods of collecting outstanding debts and greater emphasis on insisting clients keep within agreed trading terms.
A business accountant may be asked to conduct audits to identify any anomalies in the financial management systems of the enterprise, and recommend corrective measures. They may work with organisations that have hit a rough patch and have called on their expertise to identify problems and implement solutions that will set the organisation on the road to recovery. They may also assist in developing future strategies for business growth.
The role can also include preparing the annual financial statements for presentation to a management committee or board of directors, and for a business accountant who is qualified to provide tax assistance it could also include the preparation and lodgement of the annual tax returns to the ATO, and the management of Fringe Benefits Tax including lodging the returns.
The business that has engaged an external accountant Brisbane to assist the full-time accounting staff find themselves better able to identify and manage risk, and to maintain and develop the business performance. The external accountant can also perform the due diligence processes needed to safely identify the risks and opportunities in any proposed acquisitions or disposal of assets.
The role of the business accountant in the modern world is much expanded, away from purely a mechanical framework for recording accounting information, to the analysis and reporting of trends, the management of cash flow and operational funding, and giving advice on tax and financial planning matters. It is a vital role that no progressive business can be without.
