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Paul Wineberg
  • Total posts: 43

If you are showing a profit in your first year of trading, well done. This is something to be excited about. Not to be concerned your accountant is doing the wrong thing.

I have been an accountant for many years now and I am often staggered to see people disappointed when they are told they have made a profit for the year. A profit should be every business owners goal. An accountant’s job is there for both tax minimisation strategies and also business growth.

The main reason many people get disappointed when they show a profit is because they do not have the cash to show for it. There are some interesting reasons why many people don’t have he cash. The cash may be funding growth, funding new assets, paying down debts, buying boats for the directors, etc.

An accountant should help the business owner look at where the funds are going. Many business owners look at their cash in the bank and use that to ascertain what they think the profit will be. Knowledge is power for the business owner, so the accountant should explain these things to clients.