As a tradesperson, or tradie, you want to make sure you spend the bulk of your time fulfilling contracts and maximising your income. Like any other business, you have to keep track of your finances, do taxes, and plan your way to financial freedom too. But how do you do it all?
Here are five reasons why a tradies accountant is crucial to the success of tradie businesses.
1. Tax Compliance and Optimisation
Managing taxes can be a headache for anybody, given the complex tax laws and regulations and the way they are constantly changing. This can leave you stressed out about getting in trouble with the taxman for incompliance.
Having an accountant in your corner can help you comply with all tax requirements as a tradie. They can also help you identify tax deductions, incentives, and other benefits to minimise the tax burden and maximise returns.
2. Business Structuring and Planning
As a tradie, you are faced with a number of possible business structures, including a sole proprietorship, partnership, or company.
Having a tradies accountant guide you will ensure your business structure decision is right for you and that it aligns with your growth aspirations in the long-run. They can also help you create and implement a financial plan that is tailored to the needs of your business.
The accountant’s tasks would include things like budgeting, forecasting, and helping you set realistic financial goals. Proper structuring and financial planning will help you ensure better long-term sustainability and growth.
3. Bookkeeping and Financial Management
Managing your financial records is often the last thing on a tradie’s mind. A tradies accountant can ensure your records are up to date and accurate so your financial health is assured.
By setting up a bookkeeping system, your accountant can ensure transactions are properly recorded and categorised, which will prove to be a lifesaver if you get audited.
Moreover, analysing financial statements to provide insights into business performance is an accountant’s bread and butter. With informed insights, your accountant can identify areas for improvement and help you make better financial decisions.
4. Business Advice and Strategy
A tradies accountant with experience in the field can provide valuable business advice and strategic guidance over and above their basic role as an accountant. This could include things like advising on pricing strategies, helping steer cost control measures, and assisting in identifying opportunities for growth and expansion.
This kind of proactive advice and strategic planning makes a tradies accountant invaluable for business growth.
5. Risk Management and Compliance
Like any business, tradies are at risk when it comes to legal and market-related complications. To avoid getting into legal trouble, a tradies accountant can help ensure your business complies with regulatory requirements and industry standards. They will also ensure all your contractual obligations are fulfilled.
In a nutshell, accountants help ensure all potential risks are identified and strategies are laid out to help mitigate them. This might include ensuring things like insurance coverage and contract review processes, among others.
Tradies! Don’t waste time on confusing tax requirements and bookkeeping. Our tradie accountant experts help you save money, stay compliant, and grow your business. Book a free chat with Infuse Advisors & Accountants now.