Fifty percent of start-up businesses fail in the first year and 95 percent fail within the first five years. While no one knows if a business will succeed or fail, you can take steps in order to help your business get off to the absolute best start. Professional accounting advice is a good first step.

While most entrepreneurs focus on getting their business up and running, many often forget the importance of accountancy and how it sits at the heart of every business proposition. Every entrepreneur wants their business to grow and be profitable, but the problem is that a lot of entrepreneurs forget that in order to be profitable you have to understand your finances and the process of your financial management from day one.

Structural strategy

Your business may only be in start-up phase now, but your goal is likely for it to grow, which is why the way your business is legally structured from the outset is so important. The legal structure of your business impacts your tax, personal liabilities, asset protection, reporting obligations and more – the right business structure can save you valuable time and money. So, it’s even more important to get the correct structure in place – from the beginning. Your accountant will run through the various options for what type of structure would suit your new venture best and help you choose the best one for your needs.

Debt strategy

Not all debt is bad – some debt is necessary for growth and expansion. An accountant can help you tell the difference between good and bad debt, and help you find the best borrowing strategy for your small business. By analysing reports, an accountant can advise whether it’s best to put cash into a loan or reinvest it into your business.

Growth strategy

Most small business owners’ goal is to grow; whether it’s to bring on more staff; expand premises or to franchise. Growth seldom happens from sheer luck. It takes planning. An accountant is instrumental in business expansion. An accountant can help your business grow by:

⦁ providing a financial forecast to help aid decision making

⦁ providing cash flow, pricing, financing, and inventory management insight

⦁ provide advice on leasing and purchasing property and equipment

⦁ provide people-focused financial metrics such as operating profit per employee

⦁ and much more

Hiring an accountant

Before you set the wheels in motion and part with your cash to start a new business, seek support from a professional accountant. Doing so has many advantages:

⦁ An accountant has years of knowledge and insight and can be a solid advisor to you throughout your business journey

⦁ An accountant can spot problems with your finances before it’s too late

⦁ An accountant will keep you up to date with changes to government legislation

⦁ An accountant can find ways to maximise the potential of your company in order to ensure growth

Do you have questions about starting a small business and would like some professional accounting advice? Give our team at Meridian Accounting & Business Services a call to discuss how we might be able to help. Call our Rockhampton office on (07) 4927 4625 or our Emu Park office on (07) 4938 8262, or contact us online here.