A business can be growing quickly and still be heading towards serious financial trouble.
That was the situation facing Mia. Her custom streetwear brand had taken off. Orders were increasing, her TikToks were blowing up, and major retailers wanted to stock her products.
From the outside, things looked great.
But as the business grew, so did the costs. Mia had invested heavily in stock, marketing and new staff, without putting enough aside for tax. At the same time, some of her largest customers had another 60 days to pay their invoices, so the money wasn’t coming in quickly enough to cover what was going out.
By the end of the year, those financial blind spots had cost the business close to $1 million.
So, what went wrong?
The issue wasn’t a lack of customers. Mia was making major business decisions without a clear enough picture of her finances.
It’s something that can catch growing businesses out. A company might be bringing in plenty of revenue but still struggle with cash flow while waiting for customers to pay. Costs can rise faster than expected. Tax and superannuation obligations can be underestimated. Prices might look profitable until every expense is taken into account.
This is where accountants play an important role.
Where can Grant Thornton make a difference?
Accounting is about much more than recording what a business has already spent or earned.
Accountants help clients understand what’s happening financially and use that information to make decisions about what comes next.
That could mean monitoring cash flow, preparing forecasts, identifying risks, reviewing costs or working out whether a growth plan is financially sustainable.
For Mia, having that advice earlier could have meant changing her spending, planning properly for tax, reviewing customer payment terms or adjusting the timing of new hires.
Why does trust matter?
Accountants work with some of a business’s most sensitive information, so trust is a big part of the job.
Clients rely on them to be accurate, ethical and honest, including when the advice isn’t necessarily what they want to hear.
They also need someone who understands what the business is trying to achieve. That means asking questions, challenging assumptions where needed and helping clients weigh up the financial consequences of different decisions.
It’s part technical knowledge, part problem-solving and part working closely with people.
More than numbers
Okay, so Mia’s story is fictional (phew), but the story is all too common.
Businesses constantly need to work out whether they can afford to hire, expand, invest, change prices or take on new opportunities. Accountants help them make those calls with a clearer understanding of the numbers behind them.
That’s also what makes accounting a much broader career than many people first realise. It can put you right in the middle of the decisions that shape how a business grows, responds to challenges and plans for the future.
Learn more about accounting careers at Grant Thornton and the different roles and pathways available.
