These days being in the business it could be very demanding, tough and stressful. But when you have the right accountant who will advise you on the right path and right way of helping the business to grow and survive, especially after COVID-19, natural disasters and rising inflation.
As the financial year 2022-2023 is coming to an end it is important to make sure finances are in order. An accountant can help you navigate tax laws, manage your business finances and plan for the future.
Here are seven most questions to ask your accounts in 2023.
1. Is my business debt being managed effectively?
If the business has some outstanding debts talk to the accountant, which then accountant can look into two perspectives: your system for collecting customer debts, and your debt and finance responsibilities.
2. Should I be tax planning?
Nobody wants to pay more tax, ask your accountant for strategies to reduce your tax liability. Ask if the structure of the business meets your needs, about superannuation planning to minimise tax or any other recommendations to optimise tax.
3. Should I raise my prices?
Ask the accountant to review the pricing system and existing rates against the current market and rely on the data to make informed decisions to boost revenue and profit. Looking at realistic pricing can determine to end a product or service that no longer delivered the margin level or financial goals.
4. How do I manage my cashflow?
Cash flow of the business can be tricky to manage for any small or large business. To start with is to generate and review balance sheet, income statement or cash flow statements. This will give you a clear understanding of accounts and of business, to balance your salary with your business finance without risking your personal assets.
5. How I can set profit targets for 2023?
Your accounts can be a precious resource when it comes to profit planning. In order for the business to succeed, accountants can help set up financial goals and create a plan to accomplish them. Accountants can review the current financial situation, costs and pricing to create and provide guidance on how to achieve financial goals.
6. What does inflation mean for business?
As any owner of the business is concerned about the high cost of living, interest rates and inflation. With inflation, employees will need a higher income to pay for daily expenses. As an owner of the business needs to decide if you can afford to pay employees those wages that they are asking for, therefore talking to the accountant may help to make a clear decision.
7. What tax or super changes will impact my business in 2023?
Most likely change in this year’s 1st of July 2023 is that superannuation rate set to increase by 0.5%, until it peaks at 12% in 2025. Also, the accountant should advise you throughout the year to prepare for tax season, by suggesting keeping better records or making quarterly tax payments.
All these questions are worth asking your accountant as more or a little information can help the business grow and be successful.
Feel free to contact Lana and her team at Matovic Business Accountants if you would like to discuss your business’ accounting and bookkeeping needs.
Email us at info@matovicaccounting.com.au or call (07) 3557 5721.
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