Does your small business need an accountant?
If you are a small business owner, you might wonder if you really need an external qualified accountant to help you. The answer is not always straightforward. It depends on various factors such as the size and complexity of your business, the skill set of your internal team, your own financial and taxation knowledge, your ability to stay up to date with accounting and taxation rules etc
You might think that you can handle everything yourself, or appointing an accountant is too expensive. However, there are many benefits of appointing an accountant for your small business, especially if you want to save time, money, and stress. There are many benefits of having a professional qualified accountant on your side, especially as your business grows and becomes more complex.
Here are some of the reasons why you should consider appointing a qualified accountant for you and your small business.
Saving time and money
An accountant can save you time and money. Running a business requires you to wear many hats, and you might not have enough time or expertise to deal with all the financial aspects of your business. An accountant can take care of preparing annual Financial Statements, dealing with H M Revenue & Customs and other regulatory organisations, Tax Return and payroll preparation, invoicing, and financial reporting as well as assisting and guiding you with tedious and time-consuming bookkeeping and invoicing. This will allow you to focus on your core business activities of running and growing your grow your business, its customer base, developing your products and/or services, marketing, and customer service.
An accountant can save you money by helping to ensure that you claim for all necessary tax deductions that you are entitled to, reducing your tax liability and maximizing your business profits. They can also help you negotiate better deals with suppliers and lenders, manage your cash flow, and avoid costly mistakes and penalties.
Making better business decisions
Another benefit of working with an experienced, qualified small business accountant is that they can help you make better informed business decisions. An accountant can provide you with valuable insights and advice based on your financial data, such as your cash flow, profit margins, expenses, and growth potential. An accountant can also help you create a realistic and effective business plan that outlines your goals and projections, and that can help you secure funding from investors or lenders. By having an accountant on your side, you can make informed and strategic decisions that will help your business succeed in the medium and long-term.
An accountant can provide you with expertise and guidance on various financial matters, such as setting up your accounting system, choosing the best legal structure for your business, creating a realistic business plan and budget, and complying with accounting and tax laws and regulations.
An accountant can help you analyse your business’s financial performance, identify opportunities for improvement, by providing you with valuable insights and recommendations based on your financial data, and help you plan for the future.
Staying compliant and organised
A third benefit of appointing an accountant is that they can help you stay compliant and organized with your legal and financial obligations. As a small business owner, you have to deal with various rules and regulations that affect your business, such as tax laws, accounting standards, employment laws, and industry-specific regulations. An accountant can help you understand and comply with these requirements, and keep your records up to date and accurate. An accountant can also help you prepare and file your tax returns on time, and avoid fines from the authorities.
An accountant can give you peace of mind by ensuring that your financial records are accurate, complete, up to date and compliant with the relevant laws and regulations. They can also help you prepare deal with any issues or disputes that may arise with the tax authorities or other parties.
Getting peace of mind
A final benefit of appointing an accountant is that they can give you peace of mind. Running a small business can be stressful and challenging, especially when it comes to managing your finances. By having an experience qualified small business accountant on your team, you can rest assured that your financial affairs are in good hands, and that you have a trusted partner that can support you and guide you through any challenges or opportunities that arise. An accountant can also help you monitor your financial performance and identify areas where you can improve or grow your business.
How to choose an accountant for your small business
When looking for an accountant for your small business, there are many factors you should consider before making a decision. Not all accountants are created equal, so you need to choose one that suits your needs and expectations.
Here are some tips on how to choose an accountant for your small business. By following these tips, you should be able to find an accountant that meets your requirements and expectations.
Ask for referrals and recommendations from other small business owners in your industry or network. They might have worked with an accountant they trust and recommend.
Meet with potential accountants you are interested in working with you. Ask them questions about their background, services, fees, availability, communication style and references. Look for accountants who are professional, qualified, friendly, easy to approach, responsive, and trustworthy. Check who will be you day-to-day contact and who will manage your and your business. Senior managers, directors and partners, in many larger firms of accountants, may initially meet with you and promise the world. However, you may be left with a junior, inexperienced accountant on a day-to-day basis. Also look for accountants who share your vision and values, and who can work well with you and your team. Check their reviews and feedback online.
Check their credentials and experience. Make sure they have the relevant qualifications, practicing certificates, insurance, to provide accounting services for small businesses. Accountants for small businesses are usually Chartered Accountants or Chartered Certified Accountants. Some are member of the Association of Accounting Technicians. You do not have to have formal qualification to set up as an accountant. Some people, who have worked in firms of accountants may set -up on their own. They may be able to prepare basic accounts and tax returns etc. However, their lack of up-to-date knowledge and experience may be limiting. Without qualifications, regulation and insurance etc you may be exposed to poor service and advice. You should also look for an accountant who have experience working with small businesses in your sector or niche.
Compare the fees and services of different accountants. Find out what they charge for their services, how they bill their clients, what they include in their packages, and what they charge for extra services or consultations. Look for accountants who offer transparent and reasonable pricing, flexible payment options, and value-added services.
Assess the communication and compatibility of the potential accountants. Find out how often they communicate with their clients, what methods they use, how responsive they are, and how well they understand your business needs and goals.
Review the reputation and references of the potential accountants. Look for online reviews, testimonials, ratings, awards, or complaints about their work quality, professionalism, ethics, and customer satisfaction.
Consider not only their technical skills and competent, but also compatible with you and your business culture and values. You should look for an accountant who is proactive, responsive, trustworthy, and supportive of your growth.
Appointing an accountant for your small business can be a worthwhile investment that can help you save time, money, stress. It could be one of the best decisions you can make for your business’s financial success.
An accountant can also help you stay compliant and organized, give you peace of mind, and help you manage your finances effectively and efficiently.
You need to choose an accountant who is qualified, experienced, affordable and compatible with your business. By following these tips, you can find an accountant who can help you achieve your financial goals and grow your business.