Chartered accountants provide taxation services, accounting, and a year-end audit and also give financial advice. No corporation, large or small, can run smoothly unless it has someone to take care of financial transactions and cash flow.
You might still be unsure if you need to pay a chartered accountant or can make do with a bookkeeper or an accounting software. To help you decide, here are some ways in which employing a chartered accountant in Bangalore can assist you in saving money.
Ways in Which a Charted Accountant Can Help You Save Money
The following is a list of some of the many benefits of hiring a CA for your company purely from the financial aspect.
1. Regulating Bookkeeping
Any business can seriously benefit if the books are maintained in order, and all cash flows are recorded on a regular basis. A chartered accountant will do this for you. He will update your books on a weekly or monthly basis. He will also warn you if the books are not balanced, i.e., the expenses are exceeding your income.
Since the books would have all records in any case, you can determine where you want to cut costs. Keeping a tab on which business investments lead to the most significant profits will help you in saving more and spending less.
In extreme circumstances, if your business is under government auditing, having an organized system of books will help you out. Even Auditing and Bookkeeping is Mandatory in case of Company Registration in Bangalore.
2. Tax Reduction
A chartered accountant is a trained professional in all kinds of tax laws. He is also almost always up to date with the latest trends and changes in tax laws by the government.
He can definitely help you in finding loopholes with taxation laws and regulations so you can save money on taxes you have to pay and gain money on taxes you have to receive
There are many ways to reduce taxes legitimately. This could be by offsetting income by using partners and spouses, switching up your VAT system or changing customer’s expenses. A good CA will be able to guide you on which of these methods you can use in your business.
3. Avoiding Penalties and Fines
A crucial element of a chartered accountant’s job profile is to complete and submit forms on time. It is easy to get jumbled up in the technical jargon of the tax department or lose track of multiple deadlines.
Even small fines can add up over time and acquire interest as well. This could be a massive loss to your business. Some small businesses have been forced to shut down because they could not afford to pay the accumulated taxes.
A chartered accountant will ensure your business can avoid such a situation. Your tax returns will be in order, and you will be free from paying penalties.
4. Business Advice
You could hire a chartered accountant in an advisory capacity as well. With his expertise in the financial market, he could make accurate predictions about market trends. This means that you will invest prudently and get maximum returns.
A chartered accountant could help you to figure out who your best clients are, how much money you should invest in a certain growth plan and which marketing schemes you should apply for maximum gain.
He can even monitor your progress and set targets for your company.
5. Saving Time
Everyone knows time is money. Especially with a business, time is a very valuable commodity to have.
As it is, a business owner has little time on his hands. Doing your own finances would mean taking out extra time to go through your accounts, tracking your cash flow, balancing your books on your own, keeping ahead of tax payments and a variety of other activities. This is the precious time that you could have spent finding more business opportunities or even taking care of your current responsibilities.
In Conclusion
A chartered accountant does not come cheap. Most CAs charge by the hour or by the month. Some are even employed on a permanent retainer and take a share of the company’s turnover. However, you can be sure of making back whatever money you have spent on a CA by the services he provides.