It’s possible your business is fetching you more money to pay your taxes, you may have acquired the skills to file your tax returns by yourself, and you may know the best software or tools to handle your accounting jobs on your own, but there are still reasons you need a good accountant. It is necessary to hire a good accountant that can help save more money for you, both in the short and long run.
Even in this modern day, some business owners still think they can single-handedly handle the finance of their businesses; but this can be a very big mistake for any entrepreneur to think in that direction, as it will only cost them more in the long run. It’s very certain that you cannot do as much as a professional accountant does, especially if it has to do with year-end financial reports where DuPont model is required to analyze a business’ profitability.
DuPont Model also called DuPont Analysis or identity is a performance measurement technique, whereby assets of the business are measured at Gross Book Value (GBV) rather than at their Net Book Value (NBV) so as to generate a substantial Return on Equity (ROE). This method is also used to categorize Return on Equity (ROE) into three segments (profit margin, total asset turnover, and financial leverage). DuPont Model began in the 1920s by DuPont Corporation.
A good accountant advises you on what to do to stay within the law while paying the least amount of tax. He advises you on tax avoidance- an arrangement of business’ financial affairs to minimize tax liability within the law.
A good accountant that is up-to-date with tax rules and laws; and knows your actual financial position very well will suggest to you lawful ways you could save more money for yourself.
At City Accountant Portsmouth (CAP), we do not disappoint our clients; in fact, you can call us to help you analyze your business using the DuPont Model, all for free!
City accountants are the best to help you save more money on tax.