Reasons why you need an accountant
Posted on 15th July 2021 at 09:37
Whether you’re a sole trader or a company director, an effective accountant to support the bookkeeping needs of your business can help you in multiple ways.
Below are our many reasons why you need an accountant
Saves you money
- Improve cash flow: By putting credit control and cash management policies in place, your accountant can give you a better understanding and proper control of your cash flow. Armed with this information you can make critical decisions on how to run and grow your business.
- Invoicing: They can set up an automated invoice system that will send invoices quickly and check which ones are overdue. Giving you more control of your cash flow.
- Optimise deductions: An accountant can highlight any areas where saving can be made; such as claiming all your entitled expenses, minimising your tax bill and advising you on any legal benefits that are available.
- Boost profitability: By working with your accountant to establish what your KPI’s (Key Performance Indicators) are, you can work out what drives your revenue and how to improve it.
Saves you time
- Reduce your workload: Once your business is off the ground, you will need all your time to run your operations rather than getting bogged down with bookkeeping tasks, tax obligations or legal compliancy. Contracting an accountant to take over these tasks will give you more time.
- Time efficiencies: An accountant can recommend process improvements and introduce you to accounting software that can help you to become more time efficient.
- Complex accounts: As your business grows, it’s likely your accounts will become more complex. Getting an accountant to do these for you will certainly reduce the risk of incorrect tax filings.
- Submit taxes on time: Your accountant will be up-to-speed on all tax deadlines and any changes the tax rules and regulations. Getting an accountant to submit your accounts for you will ensure that you never miss another deadline or risk a fine for being late.
Support and advice
- Business advice: An accountant who truly understands your business can give you savvy commercial advice that will help you to take the next steps towards growth.
- Growth: Knowing when to take on more staff, buy a larger office or expand your product range can be tricky. Your accountant can be a well-informed sounding board when it comes to making these decisions.
- Future planning: Providing assistance with preparing financial plans and growth projections, and running through the various options open to you, so you can choose the best direction for your business.
- Franchise: There may be the opportunity to franchise your business model. Your accountant can help you to map out whether pursuing this opportunity is worthwhile.
Range of services
- Process payroll: If you have employees then you need to operate a payroll in compliance with government regulations. A proficient accountant offering a full payroll service will ensure it’s done properly, on time and with the correct deductions.
- Virtual CFO: If you require the services of a Chief Financial Officer but do not need one full-time, your accountant can provide you with virtual CFO services. This gives you all the expertise of a CFO at a cost that’s within your budget.
- Business plans: In order to gain investors and grow your business, you will most likely need a variety of business plans; including cash management, performance, budgeting and financial forecasting reports. In the role of virtual CFO, your accountant can assist you with these.
- Tax planning: Advise you how to legally reduce the amount of tax you have to pay and ensure you put enough money by to pay your forecasted annual tax bill.
- Managing growth: A growing business will have a lot of needs. Your accountant can help you to manage your operations by recommending process improvements and introduce you to tools that can help you to save money.
- Business performance: Setting your objectives, and measuring your business performance against these, can help you understand what your actual performance is and how to grow sustainably.
- Plans for the future: It can be difficult for business owners to fully understand the current financial situation and make strategic plans for the future. A skilled accountant can help you to asses, plan and capitalise on any opportunities.
- Financial borrowing: If you’re looking to finance your business with a loan, equity finance, external investment, crowdfunding or even an overdraft, your account can help to access your options and help you to complete the necessary paperwork.
Makes your life easier
- Better decision making: By having access to all your business’ financial figures, pulled together by your accountancy firm, you are able to make informed decisions around business purchases or hiring more employees.
- Real time decision making: Taking a collaborative approach with your accountant and using the real-time data they provide, can help you with budgeting and monitoring cash flow. Allowing you to successfully navigate any hurdles as they occur.
- Less stress: Having to take time away from running your business to do your accounting can be very distracting. Delegating your company finances to an accountant will removed any stress you may have around your financial compliancy.
- Focus on growth: Your company could grow at an unexpected rate, having an accountant with their finger on the pulse of your finances will allow you to focus on your growth while they take care of your number crunching.
Nicola J Sorrell -
Founder | Xero Champion | IR35 Expert
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