Running a business is no small feat. From managing operations to making critical decisions, there’s always a lot on your plate as a business owner. In the midst of all the hustle and bustle, it’s easy to overlook the importance of having a small business accountant by your side. But let me tell you, having a skilled professional who understands the ins and outs of small business accounting can make all the difference. In this blog post, we’ll delve into the top five reasons why every business owner needs a small business accountant. So, grab a cuppa and let’s dive in!
All accountants are the same – Right?
Wrong!
All accountants have areas of specialism. They might not acknowledge this, even to themselves, but the range of services accountants can offer is so wide than no one, not even the biggest firms (I shall come back to this point later) can cover everything.
Specialism is great in any business, not just accountants. It allows the business to develop the expertise they need to deliver their services efficiently and to a high standard.
The other side of the coin is that the business is less well equipped to serve needs outside their areas of expertise. There is nothing wrong with that in itself. The problems start, though, when a business takes on work they should not. In the rush to acquire new contracts the best interests of the customer can be ignored. Its not the basis of a good long term relationship but it happens.
As the prospective customer you owe it to yourself to chose your suppliers carefully. When it comes down to your accountant, this means choosing one who has AND CAN SHOW expertise with your type and size of business.
This brings me back to the choice of size of the accounting firm suited. Bigger is not always better. The larger firms may have a prestigious reputation but they are not really interested in smaller clients. Why should they be? If they can engage clients turning over £millions per year and charge fees accordingly, a small business is not going to be of as much interest. Sure, they may take you on as a clients but their premium fees will not equate to a premium service.
As a general guide, you should seek an accounting firm of similar size to your own business. Leave the big nationwide accounting firms to the nationwide companies. You will be better served by a small firm with a more personal touch. They will have a better understanding of your needs and the challenges your face.
And they will be cheaper…..
So what will a Small Business Accountant do for your business?
Provide support during the year, not just at year end
Your main concern may be compliance; meeting mandatory requirements like HMRC and Companies House. However, it’s crucial to note that accountants can provide support throughout the year, not just at year-end. While compliance is essential, it only covers a portion of the value an accountant can bring to your business. Throughout the year, an accountant can help you with financial planning, budgeting, and cash flow management. They can offer valuable insights into your business’s financial health and help you make informed decisions to drive growth. By working closely with an accountant throughout the year, you can ensure that you have the necessary support to navigate financial challenges and seize opportunities as they arise.
Make sure business is compliant with HMRC regulations
To ensure compliance with HMRC regulations, it is recommended to consult a qualified accountant or tax advisor. Their expertise and knowledge will provide accurate guidance tailored to your specific business circumstances. While HMRC states that taxpayers can self-help, it is important to recognize that accountants offer a wealth of additional benefits. They can assist with complex tax calculations, help identify potential deductions and allowances, and provide ongoing support to ensure that you are meeting your tax obligations. Engaging an accountant can offer peace of mind and help you navigate the intricacies of the tax system efficiently and effectively.
Good planning prevents costly mistakes later on
Good planning is essential to avoid bigger problems down the line. As a business owner, it’s crucial to have an accountant on board who can identify potential issues and offer solutions before they spiral out of control. With their expertise and experience, accountants can spot financial discrepancies, identify cash flow problems, and highlight areas where cost-saving measures can be implemented. By addressing these issues early on, the business can avoid larger financial problems in the future. So, investing in good planning and having an accountant by your side can save you from unnecessary headaches and ensure a smoother path to success.
An accountant can help organise your administration to reduce time and effort
Use your time wisely.
An accountant can be a valuable asset when it comes to structuring your business administration. By partnering with an accountant, you can streamline your financial processes and ensure that your business is compliant with tax laws and regulations. With their expertise, accountants can help you set up efficient bookkeeping systems, manage payroll, and handle financial reporting. By offloading these responsibilities to a professional, you can focus on other important aspects of your business, such as strategizing and growing your company. Ultimately, having an accountant on board can save you time and effort, allowing you to use your time wisely and concentrate on what you do best – running your business.
Streamline your bookkeeping…..
One of the obvious but often overlooked areas where an accountant can help is in setting up your financial record keeping. Even, or possibly especially, if you want to do you own bookkeeping, you should welcome some guidance. I recommend either of 2 systems, Xero and Freeagent. Each system is best suited to different types of businesses; the link provides a guide to choosing which is most suited to your circumstances.
Want something for free? We provide new clients with a free intro session for Xero of Freeagent. This you get started in the right direction with a minimum of fuss and bother.
….. and streamline your business
Its you business; its success or failure is down to you. But don’t overlook the fact that an accountant may be be able to offer support beyond the accounting and tax. If you choose the right accountant and they will have seen businesses like yours before. They may have some surprising insights that can kickstart a new business or help accelerate the growth of established concerns. Its always worth asking them. The worst they can say is “no”.
So what next?
Need more advice or want an initial, no obligation call? Feel from to contact us by phone or mail.