Australian Tax Office research indicates that, of the three in four enterprise owners that sought business tax advice from an accountant, 65 per cent retained a proactive relationship afterwards. This indicates how prized a proactive business accounting strategy is. But what exactly is a proactive approach to management accounting? Why is this attitude to your small business’ finances crucial? And how does specialist accounting services contribute?
What is a proactive accounting strategy?
A proactive approach to accounting involves looking beyond the now of your business’ finances to target areas for improvement. A proactive accountant will stand out for three main reasons:
- This individual updates accounting records more regularly than quarterly, giving your business a greater real-time focus on cash flow, accounts receivable and tax liability.
- A proactive accountant is forward-thinking and considers strategies to save your business at tax time, and uses initiative to address minor accounting concerns earlier.
- Their strategy includes cutting through the data to identify ongoing financial trends in your business. This involves comparing what you do to what their most successful clients are doing and applying this knowledge to advise on ways to streamline business operations.
Why is a proactive business accounting strategy so vital?
1. Avoiding common financial penalties and delays
Forward thinking and comprehensive planning save businesses at end of the financial year. Many small organisations struggle to keep on top of accounts throughout the year, and this can lead to costly and avoidable financial penalties. Proactive accountants will be focused on developing strategic goals well in advance of the pressing tax and audit deadlines to ensure their clients don’t incur late charges.
2. Aligning accounting goals with enterprise aims
Business’ financial targets should be aligned with operational ambitions – they both directly impact each other. However, an accountant not taking a proactive approach is unlikely to have the time or foresight to consider key business plans over a given period. This means a business will consistently be playing catch up with itself over whether or not it has the cash flow to make new purchases or hire new staff members.
3. Achieving a business community leadership role
Word gets around quickly in the small-to-medium enterprise community. A proactive accounting approach to your finances will automatically place you in good standing among your peers and will pay dividends as other organisations look to you for guidance on how to run a business.
How does specialist accounting services help?
The DFK Crosbie team approach each accounting task proactively because we know that your business’ finances can’t work in isolation from your strategic goals. Becoming more forward-thinking in approaching tax, audit and cash flow will drive improvement internally and externally. For more information on what we offer, contact the DFK Crosbie team today.