Client: Aiming to expand my business, which means I have to keep a tight leash on expenses, and yes, Nadia, this includes my accounting fees. Might we find a way to reduce them?
Nadia: Certainly, there are several options: We could scale back the services I offer, or you could venture to find a more budget-friendly accountant, though they might not meet the mark. However, if you discover someone more adept at a lower cost, I'd be the first to encourage you to make the switch.
The essence of growing a business isn't solely about reducing costs. It's about discerning which expenses actually foster revenue growth. Take, for instance, a small startup I billed $1,800 for tax preparation and financial statements. With a few strategic tweaks, they secured a $12,000 refund, all within the bounds of legality. Without these adjustments, they would have faced a $1,666 liability. Therefore, an investment of $1,800 in competent accounting services yielded a return of $13,666. The lesson here is straightforward: invest in good accountant, don't spend on accountant.
Let's consider your rent as an investment. How does your location benefit your business? Could a move to a more prominent area enhance your operations? Or, if your sales are predominantly online, perhaps downsising your physical office and reallocating funds into digital enhancements could prove more fruitful. Scrutinise every expense with these considerations: Does it add value? What impact does reducing or increasing it have on my profits?
At the end let's bust a myth: A proactive accountant isn't merely one who chases after clients with innovative ideas but one who offers these insights to those who actively seek advice. And as for Nadia showing off her new office? Well, let's allow her that pleasure.
Written by Nadia Hughes