As a business-savvy entrepreneur, you’re already embracing the joys of the cloud. You may even already have a Xero account and be using it religiously to make your accounting a breeze. So you’d be forgiven for thinking that you don’t need an accountant.
Not so fast.
We’ve all heard the statistic from the US Business Bureau that half of all small businesses fail within five years. It may interest you to know what factors contribute to success.
In a recent study, Xero asked 2,000 entrepreneurs about their experiences as small business owners. Not surprisingly, 58% of survivors use software to manage their finances, versus just 14% of failures.
What is surprising is the role of the accountant / bookkeeper in successful businesses.
Your bookkeeper contributes to your success
If your finances are in good health, your business will be, too. That means the opposite is also true – bad financial management can result in a business being unable to cope with setbacks. In the research, Xero discovered that of all the businesses who failed due to business reasons, 65% of them blamed financial issues such as cash flow visibility or access to capital.
Also, according to Xero’s research, 42% of survivors who use a finance professional describe their relationship as “excellent”, compared to only 27% of those who failed.
This demonstrates not just the benefit of using a bookkeeper, but of finding the right bookkeeper to fit your business.
Tax is trickier than you imagine
It’s true that any intelligent person can do a decent job of completing a tax return, especially when pulling out the data from a clever app like Xero. But tax law is insanely complicated and changes frequently, and it only takes one wrong move to cost your company a whole lot of money. If things go the other way, you could be paying much more than you need to in tax, and who wants to do that?
Bookkeepers and accountants know the tax code inside out. We can help you optimise your taxes, avoid disaster, and save you money.
You might be dealing with money from lots of different sources
With the gig economy in full-swing, many entrepreneurs earn their income from a variety of different sources. If you’re working a side-gig, have stock options, or buy and sell property or stock in addition to your main job or hustle, then chances are your taxes are much more complex than you realise.
Xero does a great job of managing your accounts, but having an expert you can talk to about the complexities of your situation will help ensure you don’t pay more tax than you need to, and that you don’t accidentally trip yourself up.
Even the awesome people at Xero – the world’s most beautiful accounting software – understand the value an accountant or bookkeeper can add to a small business. It’s time you stopped trying to go it alone and get a financial expert alongside to help your business thrive.
That’s where we come in.
Come talk to the team at Make Change today. Our philosophy is “humans where you need them. Software for everything else.” We’ll give you a monthly update on the facts and show you want to do to improve your financial health. We give you step-by-step, plain English answers to your financial questions, and we give you that year-round visibility that’s so key to entrepreneurial success. Go on, do it!