Something less talked about when it comes to yachts is most definitely the topic of accounting, so why is it needed? Let’s discuss.
Yachts as a whole tend to need a lot of work behind the scenes, and this wouldn’t be necessarily news to you if you are a part of the yachting industry, but what could be news is how much you will need to have an accountant by your side during your yacht owning period, why are they needed? Well, mostly if we are talking from a business perspective, meaning that you are utilizing the yacht for revenue, it is needed nearly as much as your captain would be.
Having an accountant by your side will make your business flourish in a whole different way, mainly based on the time your team will have to spend dealing with payments, payrolls, and keeping up with the overall budget and finances of a boat that on a weekly basis could be handling around 10 or more financial transactions. It is good to know why you would need an accountant to help you with your yachting business, but it’s equally important to truly understand what can they do for you.
Let’s go over the reasons why you need to have an accountant as a part of your team:
- Financial forecast and projection: An accountant can do something your regular captain would have a bit of trouble achieving, and that is forecasting exactly how much you would need to spend on a 3 months period, but not only that, to also know an approximate on how much you could earn. This kind of analysis gives you the freedom to prepare and strategize on your marketing as well as to make a plan for your maintenance expenses along with having savings in case of emergency payments, these can be precise to your own business activities and will be tailored to your business directly
- Different countries, different currencies: This one, in particular, can be often overlooked in the industry, however, considering your business lives in the Mediterranean Sea, you are bound to cross different countries who handle different currencies, as well as having clients that will come to you as a tourist destination, and they can come from anywhere in the world. Having a yacht accountant is having someone who will make sure all your payments are done accordingly, currencies are exchanged, and bank statements are matching the earnings
- Accounting takes time away from your captain: If you don’t have an accountant on your team, chances are the captain is taking care of the accounting of your yachting business, which on is not something they are trained on or have a desire to do, which only leads to trouble. Your captain’s work should be focused on the things they are great at, like navigating and working alongside the crew to maintain the yacht in the best shape ever, a job that focuses on safety and the best practices for your business to succeed both on the dock as well as on the middle of the sea, with your crew and with your clients. The why’s go on and on and on, this is absolutely key to a successful business practice, especially when it comes to yachting as a whole, but now is time to find out what can a yacht accountant can do for your business, what makes it valuable for you and a great asset to have on your team:
- Financial control: An accountant will have full control of your finances, it will make sure every penny is reported and they can give you further suggestions on how to make the best of what you already have, which makes an accountant an incredibly useful asset, who when mixed with a yacht manager, will improve your yachting business beyond anything that was already there, to begin with, allowing you to have a base that lends the space for your business to grow.
- Annual financial statements: No matter where in the world your business is based, most likely you will be paying taxes, which oftentimes is stressful to everyone, so this if anything this is the most important thing a yacht accountant will do for your business. The annual financial statements will be done accordingly to the law of the state your business resides in, and they will be done from the already controlled bookkeeping done throughout the year, this will then be passed to your certified accountant, who will proceed to file the taxes.
What is your experience with yacht accounting? Have you ever hired one? What is something you think they should do to improve on their services? Considering growth is just part of life and how fast technology is advancing every day, we are sure this particular side of the business will continue to improve and prove itself valuable overtime to those who chose to give their team this sense of security and safety on the financial side of their job.