Surround Yourself and Your Business with Assets Not Liabilities
When we think of assets and liabilities, we think of them in financial terms but yet there are so many other areas of life where this concept is applicable. This is especially true for people. For example, if you want your business to be successful and sustainable then it is important for you to surround yourself with people that can be categorized as assets rather than liabilities. One of the most important departments in a business is the accounts and finance department and it is important for you to have people with adequate accounting knowledge and experience that can be categorized as assets rather than liabilities as this is the department that is responsible for providing information regarding an entity’s financial position and performance which is used for making important business decisions.
It is highly critical for a business (whether a start-up or an established small or medium size entity) to have an accountant or an accounts team to handle all their financial matters. There are many accountants as well as accounting firms out there in the world that are highly trained in handling and managing all the accounting and finance matters of any business entity so that to enable the business owners to shift their focus on generating more revenue and profits by attracting more new customers as well as keeping the existing ones satisfied
According to a recent survey conducted by QuickBooks, 85 percent of the respondents (owners of small businesses) said that partnering or hiring a qualified and experienced accountant or tax consultant helped them in saving money in the long term. One of the hesitations misconceptions, most of the business owners had in their minds at the beginning of their businesses was that hiring a qualified accountant with good accounting knowledge and skills would require them to spend a huge amount of their working capital.
There are many other options available for businesses that have restricted funds but still want accounting experts to take care of their accounting and finance needs. Some of these options include hiring a virtual accountant, freelance accountant, or an accounting and tax firm on flexible working terms and conditions.
Another mistake that some of the owners of newly started businesses make is to offer important positions to their family members, friends, or acquaintances due to trust issues. The risk of giving important positions to friends and family members just because of trust is that they may not possess the required knowledge and skills to carry out the duties and responsibilities of the position offered. This may adversely impact the entity’s day-to-day operations. For example, if you hire a person that you trust the most as your accountant but that person is not skilled or trained enough to carry out the duties of an accountant then this may place the business in a position where it will be susceptible to errors and mistakes that may have severe financial consequences such as hefty penalties, excessive payment of interest and tax to banks/ financial institutions and the tax authority respectively.
The takeaway from this is that a good accountant is an asset that you should protect and keep hold off until it is feasible. Partnering or hiring an accountant with great accounting knowledge and skills is a very wise business investment.