Starting your own business requires a strategic vision; making it sustainable will require responsible management. As your business grows, there are plenty of things that are going to need your attention daily. As head of the company, you have to oversee various tasks in areas such as operations, marketing, and human resources. Perhaps one of the most critical aspects that will take up your time is your financial management of the company.
While it may take creativity and innovation to launch a new business, not every entrepreneur is well-versed in accounting and bookkeeping. When you are just starting, you may be tempted to be in control of everything. However, if you want to run and grow your business responsibly, hiring the right people to keep the company in good financial shape is a must.
The e-commerce industry is highly competitive. If you want to expand and stay ahead of the curve, you will probably need to spend time on the front lines, developing new products and keeping your company relevant. You can only focus on moving the business forward if there’s someone to help you lay the foundations for good financial stewardship.
Here are the signs that it's time to hire an accountant to help your e-commerce business grow:
1. When you need to file tax returns
Usually, the first time most people encounter an accountant is when they need help filing their tax returns. Since taxes only happen once a year, many companies choose to outsource once the season approaches. This can help you save some money, but it may have more costs than you’d think.
With a project-based accountant, you don’t get the benefit of financial advisory for the other months of the year. Having a regular accountant on board ensures you don’t miss out on valuable advice that could help you save on expenses, tax liabilities, and other operational costs. If your business is paying taxes, that means you’re earning a profit. Hiring an accountant can help you look for efficiencies and maximise your gains. You may even find that you’re earning more than you’re paying for their assistance!
2. When you don’t have time to prepare financial statements regularly
Any successful business owner will tell you that no matter what industry you are in, you need to review your company’s financial situation at least once every two weeks to a month. If you find that other aspects of operations take up more of your schedule, you may be missing out on critical data that are necessary to drive your business decisions.
If you don’t have time to check your finances, you need a trustworthy partner who can consolidate the information and provide you with regular updates so you can make informed decisions.
3. When you have trouble making strategic decisions
If you experienced initial success and now find yourself stumbling, it might be that you are making poor strategic decisions. You might be spending excessive amounts of money on rentals, utilities, and salaries, that might otherwise go to your bottom line. An accountant can help you see where you are bleeding money and help you find solutions to problems with cash flow, receivables, and liabilities.
4. When you want to get investors
Investors can be a great way to expand your business exponentially. Before you get more people to invest in your company, however, you will need to show them your financial statements. They will want to understand how you make profits, and what kind of returns you can give them when they infuse your company with capital.
If you find yourself in any of these situations, it’s an indicator that you need the services of an accountant and bookkeeper. More than preparing financial statements, they can provide valuable insight into your operations and look for ways to improve. Your finances are the backbone of your company, so make sure you create a solid structure for your business to grow on.
Do you need an e-commerce accountant in Australia? We offer expert business advisory services for entrepreneurs and influencers. Let us help you manage your finances responsibly. Call us today and find out more!