Small business accountants are vital to the success of any small business and can not only ensure that a business is compliant with UK business and tax law, but also provide the foundations of financial stability and future growth.
What are small business accountants?
A small business accountant is a trained professional who prepares, audits and analyses the financial affairs of a small business. As well as ensuring that small business clients are compliant with UK legislation and regulatory guidelines, small business accountants are responsible for ensuring that their clients are financially healthy and advising clients if there are any potential financial issues.
A proactive small business accountant will also advise businesses on how to overcome financial difficulties and make them aware of any relevant, government-approved schemes and benefits.
Why do you need a small business accountant?
Many small business owners think they don’t need an accountant, because they have tools that help make bookkeeping and other processes easier.
Small business owners are busy managing multiple functions of their business and whilst there are tools available that help reduce the amount of time it takes to manage a small part of an accountant’s job, it does not replace the deep knowledge and wide skill set that an accountant has.
It’s important to consider that the value of an accountant goes way beyond the management of basic financial processes; small business accountants that go above and beyond for their clients can often:
Save you time
The more time that business owners have available to spend developing their products and/or services, the more potential they have to increase revenue, profits and future opportunities. Whilst it may not always be appropriate to outsource the entire finance function of a small business to an accountant, engaging a small business accountant to produce company accounts and file the relevant tax returns can save a significant amount of time every year.
Save you money
Arguably the greatest benefit of employing the services of a chartered accountant that has experience with small businesses, is the potential tax savings they could identify and leverage. In addition to a potential reduction in tax liabilities, a small business accountant could benefit business owners and individuals by avoiding any unnecessary fines for late filing.
Make growth easier
Accountants are relied heavily upon by their small business clients and this often means that small business accountants understand their clients’ potential for growth. Financial forecasting and general business advice from an accountant can often help to reduce risk when investing in growth and provide an excellent platform on which to budget for marketing and sales activity.
Many small business accountants have excellent relationships with their dedicated bank managers, who can help small business owners and contractors secure finance to fund accelerated growth. The accountant can act as a valuable sounding board when making key decisions and provide well-structured financial documentation and business plans to assist funding applications.
Provide piece of mind
Starting a business is in itself a daunting prospect to many entrepreneurs; having to comply with all UK tax legislation and ensure financial stability can easily become overwhelming. Small business accountants understand what’s required to ensure compliance and know what to look for when aiding business owners. It is well worth investing in a good accountant to ensure that everything is taken care of by someone with a sound understanding of the system and the experience to handle it on behalf of a small business.
All things considered, accountants can save small businesses time, money and hassle, whilst also opening further opportunities for small businesses to thrive. The question isn’t whether you can afford to have an accountant, but whether you can afford not to!