A business that is expanding too fast has as much risk as a business that has to downsize. Chartered accountants can help in managing your business as it expands. Controlling your budget by properly choosing fixed and variable costs is extremely important while expanding. Fixed costs like a lease or machinery can be costly when turnover is low. Having the right balance between these two costs is thus extremely important. Talking to your CA before entering into any major transactions is also helpful in controlling your taxes with Abeveda. CA’s have years of experience and training which they utilise to figure out a way where you can legally pay the least taxes possible.
As the company grows, the level of personal control naturally lessens. A proper system of checks and balances has to be put in place so that the growth of the company does not result in its downfall, due to accidental errors or deliberate fraud.
It is also important for companies to consult Chartered Accountants before changing their accounting software while expansion. Different types of software are available in the market and each one is suitable for a particular type and size of business. Buying one simply on the basis of recommendation of friends or personal preferences is foolish. Having a CA involved in this decision making is the right way to make sure that the type of accounting software you are choosing is perfect for your unique needs.
For your personal finances
People usually think chartered accountants are for big businesses or for the super wealthy. If your financial affairs are complex and you are a retired businessman, you will need the help of a CA regularly to file tax returns, in order to make sure you are not paying more in taxes. But ordinary people often benefit from their advice. Employees can use their services to file tax returns. Filling tax forms alone is easier nowadays, but it is always better when a professional does it. You don’t have to worry about deadlines and spare yourself the headache.
You can also take a CA’s advice when moving or switching jobs, earning gifts or benefits in kind, planning your retirement etc. During important events in your life like your wedding (whether to divide savings with your spouse to reduce taxes), when buying a house or car (to decide how big a mortgage or loan to take), taking control of your investments, or even after a death in the family (to understand inheritance laws and taxes), you can consult chartered accountants for expert advice. Gift and inheritance taxes especially are things which people often forget to consider. Cash flow projections are also valuable in negotiating loans or overdrafts with the bank. A small business which cannot afford having a CA on its roll can still have an initial consultation for help in creating an automated management account, or at least a manual template which you can then operate by yourself. Talking to a CA before starting the business can also help you in figuring out ways to legally reduce your taxes by managing your accounts, fixing salaries and other benefits of employees etc.