Small businesses have experienced the full wrath of the COVID-19 pandemic. Many service providers to these businesses have been rendered redundant. But contrary to expectations, the pandemic has pushed tax accountants into a more crucial role than they ever had before. 

Businesses continue to seek their professional advice on how to navigate the murky financial waters of the “new normal”. Financial experts particularly help entrepreneurs understand and benefit from the various government stimulus packages and tax relief programs. That is why your small business cannot afford to skip the services of a reputable tax accountant in Newcastle. This article explores 9 key benefits that a tax accountant can bring to your small business post-COVID. Also, visit for wealthvisory business tax.

9 reasons why business accountants will be important post-COVID

The accounting decisions you make now can make or break your chances of competing in a volatile post-COVID-19 economy. Instead of going it alone, it is best that you tap into the experienced perspective of accounting firms. Among other things, they will help you: 

1.      Understand tax changes

The government has offered myriad regulatory relief solutions in a bid to help businesses weather the pandemic storm. Grants and reliefs significantly affect business taxation. That’s not forgetting that ATO has been lenient on late lodgement penalties for tax returns during the pandemic. These situations are likely to change as soon as the pandemic is behind us. There will be a lot of new tax jargon that only small business accountants in Newcastle, Charlestown can help you understand.  You will need their help when factoring in any unseen or hidden post-pandemic ATO taxation changes.

2.      Apply for financial aids

Once the government grants cease, which is sooner than you’d imagine, you will need to source for financial support elsewhere. A tax accountant will help you forecast your cash flow to determine how much aid you need and from whom. Loans differ in terms of interest rates, while only specific businesses are eligible for some specified loans. A tax accountant has the skills and experience to advice on the loans that best align with your business mission. They also will prepare financial statements necessary for financial aid applications.

3.      Manage your probably diminishing resources

Most small businesses have experienced consistent losses throughout the pandemic. Post-COVID will be a tricky recovery period, and you will need all the help you can get. Part of the help you will need is top-shelf skills in resources management, skills that only business accountants can offer. For instance, if you slashed your workforce during COVID, you probably lost talents that would be critical for future growth. A tax accountant can draft a plan on how to start rehiring those talents as need arises. Small business accountants in Newcastle, Charlestown can also help you determine areas to cut costs without hurting your business. They will help you determine unprofitable customers, negotiate lease and loan contracts, and suggest ways to reduce inventory costs.

4.      Identify and leverage new business opportunities

You will need every possible growth opportunity to keep your business going after the pandemic. With so much to do as a business owner in a recovery phase, you might miss the not-so-obvious opportunities. You need the keen eye of a tax accountant to help you with that. In fact, financial experts have the knowledge to craft new and improved business models that can propel your sales. For instance, they can help you take your business online or reimagine your advertising approach for better customer appeal. 

5.      Maintain books of accounts

There definitely will be a lot of paperwork to file in the post-COVID economy. That notwithstanding, it is important that your financial books stay updated. That’s because your business will require accurate financial figures both for loan applications and for sourcing new investors. Well-kept financial books are also important for keeping your house in order; in determining where your business stands financially. Having a tax accountant on board can help ensure that data clerks key in all available financial information accurately. What’s more, with financial statements prepared in time, you are able to focus better on other pressing recovery plans.

6.      Understand changes in supply chains

Companies that over-relied on raw materials or manufacturers from COVID-19 hotspots such as China suffered the most devastating business disruptions. This consequently forced businesses of all sizes and shapes to rethink their supply chains. You probably engaged other suppliers as a short-term fix, but now you need to rethink the long term. You need to interrogate the suitability of your current supply chains going forward. You also need to strategise on how you can safely re-engage your former and longstanding suppliers if the need arises. Your tax accountant in Newcastle can help you make these tough choices.

7.      Check with and benefit from insurance companies

Your insurance provider will be crucial to your recovery plans. At the very least, they should help you cover some of the losses you made during the pandemic. However, insurance claims aren’t as straightforward as you would wish. You can’t, for example, be certain of your eligibility for a claim especially if you received some form of financial aid. You need a tax accountant to help you check your insurance and advise you accordingly. If you qualify for a claim, your accountant can determine the exact loss and provide data-backed financial proof. Note that the accuracy of your paperwork can make the whole difference in financial claims and disputes.

8.      Prepare for long-term survival

The pandemic caught most businesses off guard. Those that had solid emergency response strategies have had a relatively smooth ride. As a good entrepreneur, you must have learnt that it is important to always be prepared for unseen business disruptions. To always be proactive other than reactive. Working with accounting firms will help you build financial reserves as soon as your business is back on track.

9.      Understand your insolvency options

If bad comes to worse, you may be forced to consider insolvency. You have four insolvency options in Australia, and choosing the most appropriate option for your situation can be daunting. Your accountant can help you decide between temporary debt protection, bankruptcy, debt agreements or personal insolvency agreements.

Conclusion

The recovery phase will mark a break or make period for your business. That is why you are better off working with a good certified public tax accountant in that defining moment. You will have yourself to thank for the right decision after realising the above benefits. What’s more, the last thing you need post-COVID is getting into trouble with ATO or not understanding your financial position.