Being the owner of a micro enterprise can be fulfilling in many ways- but it’s often also a financial nightmare when it comes to remembering the rules and regulations that accountants use daily. Where other challenges may feel fulfilling and offer you growth, fear of financial penalties from a lack of compliance with accounting issues may feel like a weight around your neck. However, you shouldn’t be scared of outsourcing, even as the owner of a small business, as a professional accountant can enhance your tax compliance- and the tax concessions you receive- greatly.
Opting to purchase an existing business
Of course, buying an existing business can be a fabulous way of avoiding the hassles inherent in early setups and establishing yourself. However, it also represents a great expenditure and a huge risk for you to take. This is where the services of a accountant in Melbourne will help you greatly. They can guide and advise you through the process.
Things to think about when finding a business to buy.
As your accountant will tell you, not all businesses are created equally. Before you even begin to think about purchasing, be sure to establish why the business is for sale, how good it’s reputation is, whether the industry it represents is flourishing at the moment- with a good outlook to continue doing so into the future too, of course- and whether it’s turning a profit at the moment. Once you’ve established these facts, you’ll need to look into the matter a little further, too.Visit http://www.entrepreneur.com/article/79638 to read more information about how to buy a business
Areas your Melbourne accountant will be able to help you with.
Once you’re sure you’re looking at a thriving business with growth potential, you can start getting into the nitty gritty- and that’s where the services of a small business accountant will help you greatly. Your first step, in businesses that carry Inventory, should always be totally that inventory. You’ll be looking for obsolete stock, poor stock levels and more. Of course, you’ll also want to ensure that all the assets you’re agreeing to purchase are in place, and in what state the depreciation accounts are. Of course, this will include sourcing all of the relevant legal documents you may need, from supplier contracts to lease and insurance policies. You should insist on an up to date set of financial statements, too, and you and your accountant will scrutinize these thoroughly. Make sure that these include both the sales records and the debtor/creditor list too.Click here to read more information about depreciation accounting.
The next steps.
Once you’ve established all of this, you can start looking to the future. You’ll want a good marketing strategy that indicates growth for the business, and you’ll want to adjudicate the pricing the business currently uses to make sure it’s competitive in the market. Getting a thorough idea of your location and customers will help too, from knowing how much walk in business you attract to who you’re likely to be able to sell to in the area. You’ll also want to get a good sense of the current staff employed. While they could prove a he asset is they’re good, they may well be chaff that needs to be cut too. Good staff will help the business ownership transfer come off seamlessly.
The advice of a financial specialist like an accountant is an invaluable guide in the process of purchasing an ongoing business concern.