The idea of starting your own business can be really tempting. After all, you get to have a business of your own and you get to be your own boss, however, what a lot of people do not know is that almost 50% of new small businesses end up closing down within the first 16-18 months. This is a pretty harrowing statistic, and it has been found that one of the top reasons behind these businesses closing down happens to be poor financial management.
It is true that a new business owner who has no prior experience in running and starting a business cannot be expected to know how to manage the many finances that you have to deal with when running a business. Most business owners will try to manage their finances themselves, however, lack of knowledge and practical experience can end up affecting how things go for them.
This is where you need to opt for an accountant, and contrary to what you might think, an accountant’s job is not just limited to filing taxes and stuff like that, rather, an accountant is able to do a lot more for your business than you realize. So, in case you do not have an accountant, you should start looking for accountants Melbourne that you can opt for.
An accountant will assess your finances and overall growth, and then use that to create a forecast or a plan for the year that help will keep your business healthy and growing. An accountant will be keeping track of your cash flow and then use that to help you budget, and advise you on certain business decisions that can be beneficial and what you should be avoiding. So, your accountant will be able to give you a more realistic picture regarding your finances and which direction to take your business.