Has Your Chartered Accountant Helped You Understand Your Finances? (No matter the size of your company)

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Has Your Chartered Accountant Helped You Understand Your Finances

‘Count numbers, but more than that, count on your accountant’

Money is what makes the world go round is an old saying. Today, managing your money right, is what it takes to be on top of the world. If not there, at least somewhere close by ;) All ambitious businesses, yes, all of them, dedicate their financial affairs to people who do what they do best. Be it managing finances of a company, preparing/analysing financials, statutory audits etc, good & knowledgeable accountants (or commonly known as CA’s) are expected to know how to handle all of them.

More important than the tax & regulatory stuff, we need our Accountants to provide us with financial direction of our company. Here are some key aspects your accountants should talk to you about, periodically.

#1 : Strategy To Be A Funding Eligible/Loan Eligible company

  • No business can rule out the necessity of a capital as a loan/funding, however booming they might be. Turn to your Chartered Accountant to be acquainted whether you are worthy of a loan – when and which one.
  • More important your CA should advise you the best practices to ensure you are loan eligible / funding eligible
  • Your CA has to be prudent enough to guide you regarding on-time tax filing, maintaining foolproof bank statements and much emphasis on declaring correct income in ITR. Win an easy nod from banks for loans with the CA’s right advice every time.

#2 : To Help you Setup & Monitor Budgets

  • Budgets are a key component to ensure proper planning of our cash inflows and outflows, irrespective of your company size.
  • Your CA should help you setup these budgets & ensure they are monitored periodically.
  • It doesn’t stop with that – A CA compares forecast figures with actual results, scenario analyses, fine-tunes based on business goals and consistently monitors budget reports.

#3 : To Reduce Cost & Improve Profitability

  • Trimming down on costs is anytime a crowd-puller and it is even more attractive for businesses. A CA researches careful methods to manage expenses – fixed/variable/ overheads.
  • Adopting cost-reduction strategies not only improves your profits, but also keeps you braced for any kind of economic slowdown. With an innovative insight into budget, other financial information, a CA should forecast what’s costing you an arm and a leg.

#4 : To Improve Cash Flow

  • As cash is the breath of all businesses, maintaining a positive cash flow, has always been #1 on an entrepreneur’s mind. A CA involves in cash flow management by projecting cash flow to identify if the business is heading towards a surplus/deficit
  • Your CA’s are also expected to periodically advise you the tools & methods to improve cash flows which includes maximising receipts from customers, alternative finance types and capital expenditure decisions.

#5 : To Set Up Financial Policy

  • Transparency, Process & Accountability are the 3 key parameters for proper functioning of your finance team on Auto Pilot mode – Do we have to mention that entrepreneur’s time is very precious ?
  • Many ( or rather 80% ) of activities related to Bookkeeping, accounting, taxation & finance can happen with minimal intervention of the Entrepreneur & for this to happen, a Finance Policy has to be put in place by your CA, again, no matter the size of your company.
  • What is a Finance Policy ? In short – What should be done by whom, when and why & who is responsible for each what.
  • Pay attention to whether the financial policy is transparent and adjust it based on your business goals and needs.

Today, business folks need to safely navigate through unpredictable financial storms. Who is the guiding compass then? A good CA spots masked growth opportunities, identifies any calamities that are prone to threaten business and life-jackets your business from sinking at any cost. Their professional expertise and prudent guidance ensures we grow together.

A Good accountant is easy to pronounce, but way more difficult to find. Relativity’s team of Finance professionals do more than the above, especially if you are a small / medium business owner. With over 65 years of collective experience, our Finance & Accounting solutions ensure you achieve your business goals. Hire our ace accountants to realise the true potential of your business. Contact us now at [email protected] or call +91-93611-41436


Article Categories:
Accounting · Entrepreneur · Finance