When you feel the need to expand an already successful business, you must have a good grasp of your current financial affairs. You need to lean on some valuable intelligence and understand that it's not good enough to "turn a profit" each month, as you will need to ensure that you do not run into problems when you begin to grow. How can you ensure that you are ready for this move?

Understanding the Value of an Accountant

Many small business owners in your situation may use off-the-shelf accounting software to help them with their calculations. Also, they may employ a professional to look over their tax return before everything is sent to the ATO. Yet an accountant can do a great deal more than simply check or file, and with their help, you'll be able to generate that valuable intelligence and know what to do with it.

Micro-Analysing Costs

For example, are you fully aware of your day-to-day costs and know how even the smallest delay or anomaly could severely affect your cash flow? You may not have been tested in this area before, but as you grow and incur new expenses, you need to be very clear about any potential pressure points and have a plan in place to deal with them.

Systematic Billing

An accountant can help you put those day-to-day costs under the microscope and even take a few steps to help you reduce them. They will have a look at your current billing procedures and see if they can be tightened up at all. In this case, you should have an automatic process in place that will reach out to a customer as soon as their account goes into arrears. After all, you have to keep on top of this situation and make your incomings as predictable as possible.

Dealing with Stock

If you sell products, how is your stock control mechanism being handled? Are you keeping too much stock just to be on the safe side, as many will automatically do? Although this may initially sound like a good idea, it's typically not the best approach, and you may have too much of your capital tied up without any reason. Maybe you can take advantage of "just-in-time" logistics so that you do not have to keep as much stock on your books and can free up some of the money to help with your expansion.

Bringing in Support

These are just some of the financial management areas where an experienced accountant can help. Reach out to discuss your needs as you grow to have the best chance of success. Contact a financial management service near you to learn more.