Sometimes you’ve got to spend money to make money. Or so they say. Well, when it comes to accounting and keeping your business finances in check, they might just be right. Management accounting can save you money in unexpected ways. Whether its completing tax returns and accounts cost effectively, saving tax or improving cashflow and profits. We think every business needs a no-nonsense accountant who provides them with financial expertise. That is why we’ve put together a list of the top 5 ways management accounting can save you money.
Management Accountants know where your business can cut costs. And if they don’t, it’s their job to find out. With years of experience and a portfolio of likeminded clients, they can identify action points aimed at minimising wastage.
It all starts by taking the time to understand how money flows through your business and where potential inefficiencies could arise. This may involve cutting costs and providing advice on purchases or expenditures that are not business critical. Often, this outside perspective compliments your own views, providing a well-balanced discussion on how to proceed.
Furthermore, management accounting experts also help identify ‘hidden cash,’ or money that is unnecessarily tied up in your business. This could be due to operational inefficiencies, like outdated systems or processes. Finding ‘hidden cash’ means squeezing funds out of the most unlikely places, which you can then reinvest where it matters.
Find cheap sources of funding
When it comes to raising capital, it is imperative that you know the difference between all the options out there. Whether it’s a high street bank, a venture capitalist, a business angel, or personal savings, each one of these decisions comes with its own advantages and disadvantages. Having an accountant who understands these options and their implications is vital. They will need to identify the correct strategy and advise you on the requirements of each choice. This is no mean feat considering the plethora of options you (hopefully) have at your disposal.
Your accountant’s most valuable asset is their experience with different forms of finance and the impact of various lending processes. This covers who to approach, when and with what information. You may only get one chance when it comes to finding the right funding. A good accountant will help you make the most of that opportunity.
Management Accounting Secures (legal) tax savings
Identifying potential tax savings is another great way to access hidden cash and improve your business finances. You may not be aware of these as the rules change frequently. Luckily, it’s an accountant’s job to keep abreast of such developments. Additionally, they can help you meet tax deadlines and avoid penalties, which can escalate if you’re not careful.
Intelligent analysis of financial data
At Alpha Financials, our motto is that growth doesn’t just happen. It is planned. Crucially, it is based on sophisticated analytical tools . These help maximise profits and eliminate operational inefficiencies. We find that most businesses complain about standard financial reports, as they fail to deliver the right information and don’t focus on the growth drivers that are exclusive to your business. A good financial analysis should be highly personalised, as it will inform your future decisions. After all, your business is unique. Your reports should be too.
Expertise and Peace of Mind
A trusted financial expert who understands your business helps you get the most out of your business without taking unnecessary risks. Furthermore, experienced management accounting professionals can free up your valuable time, which you can spend on growing your business. All in all, if you took the time to add up all the savings you’ll make by hiring an accountant…well, you’d probably need an accountant.Contact Alpha Financials for more information about our management accounting services. Our model means you can sample our services in a low cost, low risk manner.