7 ways a small business accountant can save money for your business

An accountant for a small business plays a key role in helping business owners thrive and sustain their businesses. They're not just number crunchers; they do a lot more. They ensure your finances are in order, advise on how to save on taxes, help plan your budget, offer tips for your business strategy, and save money for your business in the long run. In this article, we’re going to explore it in more detail.​

Tax efficiency is a smart way to cut down on how much tax a business owner has to pay, which helps them save money. By using tax credits and deductions, business owners can lower their tax bills, leaving them with more money to reinvest in the business - or take home.​

Accountant’s role is important: they keep up with the tax laws and changes, making sure your business remains compliant. One area of tax that often changes is capital allowances. These are deductions that a business can claim when they buy a capital asset to use in their business. Depending on what type of asset you buy and when you buy it, you might only be able to deduct 6% of its cost, or you could deduct 130%. Obviously, a 130% deduction is much better compared to just 6%, so it’s always a good idea to talk to your accountant before making big purchases. If you don’t have an accountant, contact us or register today.​

Read more: 9 reasons you need an accountant for your small business​

Cash flow keeps a business going, and if it's not managed well, it can cost a lot. When cash flow isn't handled properly, business owners might need to borrow money or dip into their overdraft. But this 'emergency debt' can be pricey because the interest rates are usually higher than normal.​

Accountants can help small businesses save money by preventing cash flow problems. They can make cash flow forecasts using past data, currency trends, and future plans. This helps predict when there might be too much or too little cash. If a shortage is expected, the business owner has time to plan ahead and either avoid it or get a loan with better rates.​

Accountants can also give advice on managing money owed to the business and money the business owes. For money owed to the business, they might suggest ways to get paid faster or how to handle unpaid bills. For money the business owes, they can provide advice on negotiating better payment terms with suppliers, like longer payment deadlines.​

One way to save money is by spending less. However, investing in your business is essential for growth. Small business accountants can help track where your business spends the most and find opportunities to reduce expenses.​

At Beany, we help business owners set up Xero from the ground up or transfer your existing file to Xero with no fuss. Our team of experienced experts also help you set up Xero code, making tracking expenses and identifying areas for cost-cutting easily. Check out what else we offer on Xero-related services. ​

Budgeting means setting realistic financial goals based on your business’s past data, industry standards, and market conditions. Accountants can be a big help in creating and managing budgets, making sure your business runs smoothly and saves money.​

For example, they can assist by helping you set up a budget, organising your accounting software (e.g. Xero) to track spending against the budget, and giving practical advice if you start spending too much.​

Read more: What is a budget​

Managing debt well is important for keeping your business financially healthy in the long term. An accountant can help with this. They look at your current debts (e.g., loans, unpaid bills) and check the terms (e.g., interest rates, repayment plans). Then, they give advice on how to organise your debts better to save money and have more financial flexibility. For example, they might suggest combining high-interest debts into one lower-rate loan to cut costs.​

By working with an accountant for your small business, you can avoid penalties and fines, ultimately saving money in the long term. ​

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By working with an accountant, your business can stay compliant with tax laws and deadlines, reducing the risk of costly penalties for late or incorrect filings. With their expertise, they also help identify and resolve any compliance issues before they escalate, keeping your business on the right side of the law.​

A good small business accountant can help you avoid common financial mistakes that can cost your business. They have experience and know the pitfalls that many businesses face, like missing tax deadlines and getting hit with penalties, mixing personal and business finances which can lead to missed business expenses, or taking on too much debt without a clear repayment plan.​

In addition to helping you avoid mistakes, accountants can also spot growth opportunities for your business. They've seen it all and can use their experience to save you money and help your business grow.​

Read more: How to find the right small business accountant​

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant world. ​We have a dedicated team of certified accountants and a support team to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Register today.​