It is easy to think as a small business that you can “put off” hiring an accountant and to be honest you can. This does mean that you could lack support in a variety of areas and hinder your growth. So while yes short term expenditure would be saved it is at the cost of long term money in your pocket! Your account should, I say should because this will not be true everywhere, be a vital tool in your journey. No matter how hard we try we cannot master all disciplines and much like you have knowledge only a pro would of your industry so do accountants!
1. SAVE MONEY ON YOUR TAX RETURN
This is probably obvious, but an accountant can ensure HMRC only take from you what they should. The tax process is confusing for several reasons but let us not get into that, I am sure you can all guess why. Accounting professionals have years of training and experience to support them in navigating these confusing waters. In which minor errors can have massive consequences, not ideal for a small business looking to keep their money.
Now I am not suggesting any crazy schemes or tax “avoidance not evasion” as Jimmy Carr would say. BUT accountants will have up-to-date knowledge of tax breaks, concessions, and business incentives to save a lot of money legally. Even following the spirit of the law. Doing this yourself or using a budget account can often mean these opportunities are not seized.
2. HELP TO DECIPHER HMRC’S JARGON AND RED TAPE
On top of HMRC trying to take your money they will also make you jump through fiery hoops and send alien words to you. Whether its setting up your business or confirmation statements or anything in between having someone that’s done this before helps. Think of your accountants as your Sherpa taking you up Mt Everest, they know the language and the route. Most importantly they save you from falling off the edge!
3. FREE UP VALUABLE TIME
Keeping accurate records and accounts it vital for any business but the task can be time consuming. People say time is money, but I disagree you cannot get time back once its spent. As such give the tasks that are outside of your key focus to others! Some things in the business only YOU can do, and you only have a limited amount of time, as I’m sure you realise. Hiring an accounting professional means you everyone can do the tasks they are best at, most importantly you!
4. STARTUP ADVICE
Hiring an accountant from the very beginning can help you build a solid financial foundation to ensure that your business is around for many years to come. They can advise you on which legal structure to choose and offer unbiased, constructive criticism of your business plan. It’s also worth noting that an accountant-approved business plan is more attractive to prospective investors.
The reluctance to hire an accountant when you are a start up is even higher. But to be honest having a professional help set up your processes alone will save you time and money. As mentioned above HMRC can be tough, picking a structure, writing a business plan and the list goes on…. On top of this an accountant can help with:
Key financial risks
Overall financial health
Its worth noting financial information, including business plans, will be looked at more favourably by investors. As will much of the above!
5. CREDIT CONTROL
By no stretch of the imagination am I suggesting credit control is a super complex task. It is however one that you and your team do not have to do. In addition to saving time accountants often have tools to credit check your clients. For one of our clients this helped them to get money early from a customer of theirs whose credit rating plummeted, this company was later liquidated but our client was still paid!
Having up to date bookkeeping also means your can be sure your not double invoicing. Which is can be a pain for your clients under normal circumstances but in this day and age even more so!
6. MANAGE CASH FLOW
As we have already written about this, we will keep it short. Cash is king. Having a poor understanding or use of timing can make a successful business weak. Making getting your cashflow correct vital. An accountant would have done this in a variety of different industries and sizes and can even help you see into the future with forecasts.
7. GROWTH MANAGEMENT
As mentioned, an accountant on your side will make acquiring funding easier. This includes helping you source funding and making your case to these investors. Growth sounds ideal but too much of a good thing without the correct processes in place can be tough. Accountants help ensure you are never overwhelmed by this growth. Meaning you can just enjoy the happy customers and the money piling up in your account.
Another way accountants can help you manage growth is by tracking specific key performance indicators (KPI’s). Click here for an article on some basic KPI’s but more in depth and specific to your business is always helpful!
AN ACCOUNTANT IS AN INVESTMENT – TO USE OUR LINGO WE SHOULD BE AN ASSET ON YOUR BALANCE SHEET NOT A LIABILITY
A top draw and proactive accountant pays for itself. Cheap services or doing it yourself seems attractive but is often short sited and you miss out on knowledge and experience. Think of all the things you know about your industry that those outside would not! A good accountant will not only save you time and money but help set you business to run smoothly securely your financial health until you pass the business on or sell!
GET IN CONTACT IF YOU WANT TO CHAT ABOUT WE CAN DO TO HELP ON 07943 789 749 OR BOOK A MEETING HERE .