Category: Growth

The 9 step guide to business development

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Here at 1 Accounts we are invested in helping your business develop and succeed. We find allocating some time each week to business development is the best way to really make sure that your business grows according to your plan.

Business development is:

  • any activity that is nurturing the future of your business, not the day-to-day tasks that tend to drain the majority of your time.
  • about nurturing the right relationships so that you can create opportunities for your business and attract loyal clients who value what you and your firm do.
  • highly valuable and is key to the long-term, sustainable success of your firm

So how do you do it and do it well?

1) It’s all about the client

Rather than sell at potential clients, focus on what they need. Always listen to them first and demonstrate empathy with their problems before ever talking about yourself and your firm.

2) Address their problems and fears

Now you know their specific challenges and worries, address them. What’s the biggest headache for your clients and prospects? How can you alleviate this pain for them? Again, talk to them about what keeps them up at night and listen. They’ll tell you all you need to know.

3) Solve their specific problem

If you already have a product or service that solves their biggest pain point, great! If you don’t, create something from scratch. Diversifying could open you up to a whole new target audience.

4) Think about your main offering

In a single sentence, sum up what you offer to your clients and this will be your brand tagline. Steer clear of things like “we give a personalised service” and be more specific. Do you take away a specific fear and help your clients sleep at night? Do you give them more time to spend with their family?

5) Differentiate yourself with your website and social media

You need to be spreading the word about how you can help your clients. Essentially, you need to be helping them to find you. Make sure you have a high-quality website that is SEO-optimised and has pop-ups offering valuable resources. You will also need to be regularly active on social media.

6) Build your brand

This takes time, but becoming an expert in what you do will reap the rewards. Use your tagline offering in everything that you put out there and produce content consistently. Whether it’s blogs on your website or posts on social media, create that emotional connection and you’ll see that people will engage.

7) Make it easy to get in touch

People will take the path of least resistance so make it easy for them to contact you. Contact details should be easy to find on your website and all call to actions should be clear throughout your marketing materials.

8) Nurture the relationship

So much business is lost through a lack of following up, so be there in front of your clients and prospects to build those relationships. Every blog post you’re sharing or newsletter you’re sending out should offer value; it should answer a question or solve a problem or inspire action. There is real value in regularly being in front of your clients, just as long as what you’re saying is useful to your target audience.

9) Focus on getting your existing clients to buy more from you

You already have a great relationship with your existing clients and they already like you, trust you, and know first hand the value that you offer. It makes sense then, to help them get more from you.

It really is as easy as 1,2,3…9

While business development is essentially sales, you need to always be thinking about who you are targeting and what they want to hear, rather than talking about yourself and what makes your firm special. What are their specific problems and aspirations? Using these 9 steps, you can get creative with your messaging and really stand out to your prospects.

Is your small business struggling to make a decent profit? Here are six little known profit holes.

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With the economy as unpredictable as it has been lately it is essential for small business owners to take a good look at your overheads and cost of sales. Add into the mix the rising cost of labour, materials and shipping, and this exercise to examine your cost base may be the difference between your business having a good year next year or going under. This article will look at the 6 most common profit holes that many small businesses may have.

1) Pricing: Has it kept up with your costs?

It’s been a difficult few years and you may be thinking that your customers and clients can’t swallow an increase. Well, think again – If Starbucks and Costa Coffee can afford to still charge eye-watering amounts for a slice of cake and a coffee throughout the pandemic, then you can look at your pricing.
Often, the biggest profit hole we see with our clients is around a poor pricing strategy. Such as:

  • Are your sales team discounting too much in order to make the sale? Particularly for wholesale or bulk orders?
  • Have you kept your prices static whilst your costs have increased?
  • Are your prices in line with your cost base now, rather than when you were a much smaller business? For example, if your prices have not changed since you ran your business from the kitchen table, then it’s time to relook at your pricing.

2) Do you have a revolving door of employees?

Hiring new staff members is expensive; recruitment agency costs, training costs and senior management time spent hiring and training. Losing good employees is even more expensive – both in terms of opportunity cost and also the hit on morale when a good person leaves. If you do have an employee turnover problem, it’s time to take a good look at how to increase the levels of employee engagement in your business. Being very blunt here, you may look into the mirror to see if you personally may be part of the problem.

3) Software costs: Have you had a good look to see what you’re really using?

Those £15 a month per user type subscriptions really do add up over time. How many user licences are you still paying for but don’t actually need? How many of those pieces of software that you decided to try out are you actually using? If you used all the features of your core software, how many other licences or subscriptions could you ditch? You may find that a good look at your software stack could yield a large amount of ‘money down the back of the sofa’ each month.

4) Suppliers: Are they taking the proverbial?

This often happens when we’ve worked with a supplier for years and both you and they have got comfortable and complacency sets in. This cosiness could be hiding the fact that you might not be getting the service you require. Even worse, the prices you are paying might now out of step with the marketplace. Don’t let inertia and a desire to avoid conflict stop you from having a ‘state of the nation type’ conversation with the supplier.
In our experience, the first place to look at is your spending with marketing suppliers. Then your telephone and internet suppliers. Ask yourself; What are they really delivering? Do they need a shakeup? Our advice to you is if this resonates with you, have that conversation!

5) Not using automation – particularly in your financial processes

The cloud revolution which we keep harping on about has been a game-changer for not just accountants. The digital tools out there will help your business cut out so much physical paperwork and manual entry. For example, if you are a small cafe or pub you can now get great phone apps that will allow customers to place their orders from the table. Thus, improving the efficiency of your operation and waiting staff.
Using bank rules, email rules and other types of automation in conjunction with software such as Dext can reduce the time it takes to do your books or manage staff expenses. Why not have a chat with us to see where using apps and cloud-based software can take the grind out of your financial processes and systems?

6) Doing it yourself

How long does it take you to do stuff which should be outsourced or done by others in your business? This ‘doing it yourself’, particularly when it comes to things like bookkeeping or VAT returns, is often a false economy. Your time is much more valuable delighting customers and clients and running your business than puzzling over whether you can or can not claim VAT on your company car expenditure or that coffee with a client.
Using the right people and suppliers to free you up to do what you’re best at is often a great way to generate more profit. It goes without saying that we are always happy to talk about whether we are a good home for your bookkeeping and other financial processes.
If you address these 6 points in your business then you will be in a much better position to face whatever happens next with the economy.

 

Talent Management Planning: Why Do It?

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Talent management planning is a term we often hear floating around the business world, but what exactly does it mean and why should we do it?

To help you gain a clear understanding, we’ll explore what talent management planning is, what it consists of and, most importantly, why it’s beneficial to both you and your employees.

What is talent management planning?

Talent management planning is all about implementing effective strategies to attract, retain and nurture skilled professionals.

What should a talent management plan consist of?

Each company’s talent management plan will look slightly different based on its unique set of goals and objectives. However, each company’s plan should focus on improving these primary features

  • Recruitment
  • Training and development
  • Employee retention
  • Performance management
  • Employee engagement
  • Succession planning

Why is talent management so important?

Talent management planning helps ensure you’re getting the most out of your teams by implementing systems and processes to support their development and improve their performance.

In short, it is the blueprint for hiring and maintaining a highly-skilled, high-performing workforce, which, as we all know, is imperative to your company’s success.

How does talent management planning benefit your business?

Besides the obvious advantage of strengthening your overall workforce, there are several other benefits to implementing a talent management plan. Some of which include:

  • Increased engagement: by demonstrating a keen interest in your employee’s goals and personal development, you will find they are more engaged with their work, making them more productive and more profitable.
  • Efficient recruitment: you can utilise recruitment software to streamline your recruiting process, filter applicants and ensure you’re attracting only the highest quality candidates.
  • Improved staff retention: by offering your employees consistent opportunities to enhance their skills and advance their careers, you’re providing them with a clear incentive to retain their position within your company.
  • More candidates for succession: by adopting formal performance management techniques, you can see which employees are most suitable for senior roles and adapt their training to prepare them for these positions.

How does talent management planning benefit your employees?

Perhaps the best thing about utilising a talent management plan is that it’s mutually beneficial. To demonstrate our point, here are just a few of the benefits your employees can enjoy as a result of effective talent management planning:

  • Better onboarding process: by refining your onboarding process, employees will be more engaged and more at ease from the get-go. So do your best to make the onboarding process as personal as possible.
  • More training opportunities: by facilitating regular training opportunities, you’re providing your team members with the necessary tools to upskill and advance their careers.
  • Greater career autonomy: by partaking in mentorship programmes, you’re able to support your employees with their own career goals by offering advice, recommending training programmes and aligning them with appropriate internal opportunities.
  • Positive working culture: by assisting employees with their goals, funding their training and fostering a culture of growth and development, your employees will be more motivated, engaged and invested in your business.

Don’t underestimate the value of talent management planning

There are countless benefits to developing a talent management strategy, so don’t overlook this opportunity to strengthen your team! Invest in their development, support their career aspirations and focus on creating a compelling company culture. Your employees, profit margins and performance metrics will all thank you for it!

How to combat rising wages and staff shortages

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It’s no secret that hundreds of small businesses are suffering from increased wage costs and staff shortages. These issues span multiple industries, from hospitality to construction, and have only intensified since the beginning of the pandemic.

So, how do you handle rising demands with limited labour?

To help you navigate these challenging times, we’ve curated a list of strategies to boost your staff retention, improve your recruitment processes and increase your profit margins.

Here are our 5 strategies for combating rising wage costs and staff shortages:

1) Hire graduates, and interns, and apprentices

Graduates and interns offer an effective and inexpensive solution to staffing shortages.

Straight out of college or university, these young adults are primed for training, ready to be moulded to your company’s exacting needs. What’s more, studies have shown that hiring graduates can significantly increase your staff retention rates. Approximately  57% of graduates still retain their position five years later.

Hiring an apprentice, whilst quite an investment in time, can also be beneficial for many companies.

Although hiring a graduate may not be a quick fix, it’s a brilliant way to source new talent – plus, the ROI is second to none.

2) Invest in your employees

Loyalty is a two-way street. Therefore if you want your employees to remain loyal to your company, you need to invest in their development.

Provide them with opportunities to upskill, fund their training and encourage them to diversify their skillset. Not only will it improve your retention rates by 30-50%, but it will also allow you to cultivate a team of highly skilled professionals.

3) Utilise mergers and acquisitions

More and more companies are deciding to partake in mergers and acquisitions. Why? Because resources are limited and successors are few and far between.

By combining forces the parties involved gain access to a larger workforce, a greater array of talents and more viable candidates to succeed their business.

Plus, with an increased market share, companies are better equipped to manage rising wage costs as they acquire more capital and increase their profit margins!

4) Delegate administrative tasks

With labour dwindling and demand rising, our employees are really being pushed to their limits. So don’t exacerbate the problem by burdening them with non-essential responsibilities. Instead start automating repetitive tasks and hiring administrative staff to handle any paperwork.

Although investing in new employees and tech can be costly, they can notably increase productivity, profits, and employee engagement. Stop placing unnecessary strain on your staff and start streamlining your administrative tasks!

5) Update your recruitment style

Now more than ever you need to be investing your resources into your recruiting process. After all if you want to solve your staffing issues, you’ll need to attract and attain new employees. So what can you do to improve your recruitment style?

Firstly, you need to be harnessing the power of social media. This allows you to broaden your search whilst offering applicants an accurate insight into your business.

Secondly, you want to focus on your company culture as this can quickly attract or deter applicants. Ask yourself, what makes your company the place to work? Do you offer impressive employee benefits? Do you accommodate flexible working?

Whatever it is that makes your company attractive and unique, make sure to funnel that into your recruiting process.

Take care of your employees

Running a business is never easy, but our current climate is making things even more challenging. We wanted to end this discussion with some words of encouragement.

If your business can survive Brexit, a global pandemic and an inflating economy all in quick succession, it can also survive these labour shortages. Just remember to streamline your processes, adapt your recruitment methods and take care of your staff, as they will take care of your business.

The Do’s and Don’ts of pricing in a recession

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No matter how big or successful your company is, maintaining business throughout a recession is hard. With fluctuating demands, losses in sales and competitive price drops, the whole experience can feel like a rollercoaster ride. So how do you survive the economic chaos?

To help guide you through, we’ve created a comprehensive list of pricing do’s and don’ts. These tips can help you find long-term solutions to your turbulent, but hopefully temporary, problems and ensure you not only survive the recession but develop strategies to help you thrive long after.

The Do’s

Do promote your value

Unforeseen circumstances can quickly change the landscape of the economy. However, these external factors shouldn’t directly impact the value of your products or services. Therefore, we believe the best way to navigate a recession and stand out from your competitors is to focus on communicating the intrinsic value of your products and services. Through effective marketing, you can remind your clientele of your unwavering commitment to high-quality service and customer satisfaction regardless of the economic landscape.

Not to mention that it will take you a lot longer to do all your finances than a professional anyway. Why would you waste your time when you could be doing what you do best and what you actually enjoy?

Do control your costs and address inefficiencies

Controlling your prices during a recession is incredibly important. Why? Because the decisions you make during times of crisis strongly reflect your company standards and values. Make the wrong call, and it can irreparably damage your reputation and relationships with customers, which in turn will harm your sales long after the recession is over.

Instead of altering your prices to increase your profit margins or sales, focus on streamlining your companies’ processes. Address any inefficiencies, create long-term solutions and invest in your team’s development.

Do create valuable bundles

Dramatic price cuts aren’t as effective as you may think – not to mention, they’re almost always unsustainable. Instead, you want to find solutions that will accommodate your customer’s current needs without compromising the value of your products or services.

Creating valuable bundles and packages is one solution that is both reliable and sustainable. By offering a range of bundles (from low to high value), you’re able to attract a variety of customers and cater for their varying needs. As a result, you’re able to drive up sales, preserve the value of your products and services, and accommodate your cost-conscious customers throughout these difficult times.

Do keep looking ahead

Every business owner, CEO and partner knows that for a business to succeed, you must constantly be looking ahead – innovating and improving upon your current position. (Even amidst a recession, you must focus on long-term solutions.) Therefore, it’s vitally important to focus on your research and development strategies. Assess your customer’s wants and needs – ask them how you can improve and really listen. You can then use this information to improve upon and create products/services that incentivise customers to start (or continue) investing in your business.

The Don’ts

Don’t rapidly reduce your prices

There are several reasons why rapidly reducing your prices is an ineffective and ultimately damaging tactic during an economic downturn. However, we believe the most significant reasons are:

  1. You can destroy your long-term value. If you lock in a long-term price drop, you’re signaling to customers that the value of your products and services are significantly lower than your standard price point.
  2. Discounts won’t resolve your demand issues. If your products or services aren’t currently in demand, lowering your prices won’t change a thing. For example, there was little to no demand for theatre tickets at the height of the pandemic. However, since restrictions have eased, sales have returned to normal, and box offices have successfully maintained their original prices.

So don’t fall into the trap of lowering your prices – they are not the problem.

Don’t rapidly increase your prices

If you’re experiencing a sudden surge in sales – fantastic! Be grateful, not greedy. Rapidly increasing your prices when your products/services are in high demand implies that you are taking advantage of your customers and their needs. Not only will this alienate your customers and damage your reputation, but it can also lead to legal implications. So, whenever you are increasing your prices, make sure you do so ethically and sustainably.

Don’t get into a pricing war

If a competitor reduces their prices, don’t immediately assume you have to do the same. Competitive pricing will only damage your value (and your profit margins). Now, that isn’t to say you can’t develop a cheaper product or service that’s of equal value to your competitor’s offering – but you should only cheapen your services if you have adjusted their intrinsic value.

Remember, customers will respect your pricing so long as the services or products you provide are of a high standard.

Don’t focus on quality over quantity

Guiding your business through a recession is no mean feat. It takes a lot of courage to maintain your prices and values. However, this perseverance will help to preserve your reputation and uphold your high standards. So, instead of taking a reactive approach, focus on being proactive! Find long-term solutions, provide non-monetary discounts and drive sales based upon the quality of your products and services.

How accountants can make you look good

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When you as a business owner think of an accountant, you think of taxes, financial reporting, or loan applications. While this is all correct, it is just the beginning!

Accountants may be the frontrunners when it comes to your finances, but we can offer so much more than that. One of our most valuable offerings is making you look good!

Here are some ways that accountants can help you with your image:

1) They help you look professional 

Accountants can help you manage your accounts, budget smartly, and fix your cash flow, all of which are the foundations of a successful business. They can also help you to automate your business and work more efficiently.

For example, automating your invoicing system so you no longer need to chase unpaid invoices or reconcile payments manually. Not only does this save you a lot of time and free you up to focus on other areas of your business, but it also makes you look professional to your clients as they can see that you’re on top of your processes.

2) They help you remain competitive

One of the most common mistakes that business owners make is that they become too chargeable. I.e., they are not charging enough for their services. While this may bring in more business initially, in the long term, it will start choking your business growth.

By pricing correctly, you can let go of the clients who are not paying enough or who don’t align with the direction of your business. Once you start pricing what you’re worth, you’ll soon see that you will attract the right types of clients – the ones who support your growth and overall goal.

3) They help you look & feel confident

With an accountant by your side, you will be able to walk the walk as well as talk the talk. You will be making smarter business decisions such as increasing your capacity by outsourcing working rather than hiring a full-time employee, and you will have the figures you need at your fingertips. Figures that will give you, your clients, and any other third-party peace of mind.

4) They help to reassure your clients

If your business grows suddenly and takes on more clients, some of your existing clients may be worried that you can’t handle this growth, or they worry that they will become less important to you. To reassure your clients that you’re growing sustainably, an accountant can help you forecast the future and outline your business strategy. They can help you make necessary changes now so that you’re prepared for any growing pains.

Invest in your image 

A good impression of your brand is incredibly important, so invest in an accountant to make sure that you give off a positive one. From helping your business run smarter, to outlining the future for your business, an accountant can help you to reassure yourself and your clients that you will sustain value and growth for the foreseeable future.

KPI blog

Setting KPIs for your business: 6 tips

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KPIs (Key Performance Indicators) are metrics that tell you if what you’re doing is working or not. As you can imagine, this makes them incredibly important for productivity and business growth.

How do you know that you’re on the right track to achieving your goals if you don’t measure progress?

How do you know that you’re doing exactly what you should to get to the place that you want to be?

The short answer is, you don’t.

If you want your team to work more efficiently and if you want to actually reach the goals that you set out for your business, you need to start setting and monitoring the right KPIs. Here’s how.

1) Set KPIs for everyone

Regardless of the size of your business and team, you need to set KPIs for each team member. Metrics allow you to measure performance and improve it, so don’t be tempted to not set them at all.

2) Don’t set too many KPIs

This is a big mistake that many business owners make. Avoid this. Less is more when it comes to improving performance, as too many goals affect focus. Aim to have no more than 5 KPIs for each team member.

3) Choose KPIs that are relevant to the businesses overall goal

KPIs need to directly link to the demands of the individual’s role and what the business is trying to achieve, so look at your business plan. Where is the business going? What are the key figures that you need to know and measure?

4) Agree on these with each individual

Once you’ve chosen the KPIs for each individual, sit down with them and agree on them. Set your expectations but also explain how they will support the business by achieving these targets. The more you can show them how they contribute to the overall success of the business, the better.

5) Measure and monitor KPIs

It’s not enough just setting KPIs, you need to measure and review them. Setting and monitoring KPIs is an essential business development task, so schedule in time to review this data every month. When you do, you’ll see what tweaks you need to make to improve productivity and move the business forward.

6) Review and reset these every quarter

As your business grows and changes, your targets will be out of date. Make sure to review them with your team every 3 months so that you can update them and ensure they are still relevant. During this time, give your employees feedback, seek out their views on what is working or not working, tell them how the business is performing, and discuss what they can influence to move the business forward.

Start getting results by setting KPIs

Don’t just set arbitrary goals, set KPIs too. If you do, and you track them and monitor performance, you’ll soon see if you’re getting the results that you want. If you’re not, then the great thing about KPIs is that you can identify that something isn’t working a lot sooner. All it takes is another tweak here and an improvement there, and you’ll find what works best for you and your business.

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7 Ways an Accountant Can Save You Money

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In today’s competitive business world, it is not uncommon for people to do their own bookkeeping and accounting. There are many reasons why this is done – the most common being that you can save money doing so. Of course, saving a couple of hundred pounds is an enticing prospect, but there are actually many more ways in which hiring the services of one will help you make money instead. Here are 7 ways an accountant can save you money:

1) They free up your time

Time IS money, so the more time you free up doing your bookkeeping, taxes, and financial statements, the more time you can dedicate to the tasks that will actually generate money for your business.

Not to mention that it will take you a lot longer to do all your finances than a professional anyway. Why would you waste your time when you could be doing what you do best and what you actually enjoy?

2) They help you be more tax-efficient

Accountants can help you save money by being more tax-efficient. This means claiming what you can, obtaining loans if you are entitled to financial support, and maximising the tax deductions you are entitled to.

3) They help you avoid fines and penalties

You need to file your taxes correctly and you need to do this on time. With legislation changing all the time, this isn’t easy, and you could be leaving yourself vulnerable to penalties and charges, simply because you didn’t know.

By hiring an accountant, you can always be reassured that you’re filing on time and that your taxes are correct. You can have peace of mind that you won’t get a surprise letter from HMRC and you don’t even have to deal with them at all if you don’t want to.

4) They identify opportunities for growth

Accountants keep your records up-to-date so you will always know the figures of your business. At a glance, you’ll be able to see how you’re performing, what’s coming in and what’s going out, and also your liquidity.

There is power in data! For example, your accountant can help you ascertain how long you could survive if there was a recession, where you can cut down expenses to save money, and where you should be delegating most of your budget if you want to grow.

5) They assist in gaining funding

It takes a lot of time to secure financing from banks and as we said previously, time is money. Your accountant can help you secure loans and financing really easily from creating a business plan and helping you budget to applying and assisting you in the loan process.

6) They advise on investments

If you’re interested in investing, an accountant can help you understand different investment options. From stocks and money markets to real estate and investment vehicles, they can show you how you can grow your money and which opportunities are the best for you and your business.

7) They offer invaluable business advice

As well as accountancy, accountants can offer business guidance to help you increase your chances of success. They can help you build a business from the ground up; they can help you with goal setting and planning, budgeting and forecasting, and pricing to increase your profit margin. This isn’t even everything that’s included in their advisory services so make sure to take advantage of their knowledge.

Spend money to make money

While you can save a couple of hundred pounds doing your own books, you won’t save as much with an accountant and you could actually end up losing a lot more. With an accountant on your team, you can save both time and money while having the reassurance and peace of mind that you’re making sound business decisions for your future.

how to build your business

How to build your business (not your workload)

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If you want to build your business (not your workload) and you want to spend time on doing the things that will actually grow your business, you need to stop being a ‘busy fool.’ This means no more firefighting through the days and spending most of your time doing things that don’t contribute to your overall goal.

To build your business, you need to take control of your time and use it wisely. Here’s how.

Invest in the right workflow tools

There are bound to be inefficiencies in your existing processes, so identify them. Where are the bottlenecks in your processes? Can you automate any manual tasks?

One of the best ways to start working slicker is to invest in the right workflow tools. They can make management, collaboration, tracking progress, and daily operations so much more efficient.

Prioritise high-value work

To stop spending so much time on unnecessary tasks, start prioritising effectively. Use the Urgent Important Matrix to do this.

Group your tasks into 4 quadrants:

  • Q1: Urgent and important – these are emergencies that arise (e.g. missed deadlines, complaints, technical failures, pressing problems etc).
  • Q2: Important but not urgent – these are the tasks you need to do to grow your business (e.g. goal setting, growth planning, networking, self-development, business development etc).
  • Q3: Urgent but not important – these tend to be interruptions that take up the majority of your time (e.g. phones, texts, emails, unproductive meetings and reports etc).
  • Q4: Not urgent and not important – these are distractions that cause you to procrastinate and have no value to your business (e.g. personal phone calls, social media, excessive or irrelevant emails etc).

Once you’ve grouped your tasks, you will know what you need to focus on and what you need to avoid.

Delegate low-value work

Now you have identified tasks that need to be done, delegate the low-value work to your team so that you can focus on the ones that require your level of skill.

If you delegate effectively (i.e. delegating authority as well as tasks), you can be reassured that the day-to-running is ticking along while you’re focusing on the tasks that will grow the business.

Schedule time in the diary for business development activities

You need to invest more time in quadrant 2, doing the planning and budgeting and development activities that will grow your business. You know this, but if you don’t schedule it into your diary, it won’t get done.

If you prioritise these tasks and delegate the rest, you will have time to sit down and focus on them. You just need to find the best days and times where you can work productively and without any interruptions.

Build your business

It really is as simple as that. To build your business, not your workload, you need to follow these 4 steps. When you do these consistently, you’ll find that each day follows a much calmer formula:

  1. DO – those important tasks that need to be done today.
  2. SCHEDULE – the important but not so urgent tasks, so that they will get done.
  3. DELEGATE – the urgent but not so important tasks.
  4. AVOID – the non-urgent, non-important tasks.
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Do new small businesses need an accountant?

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According to business start-up statistics in the UK, 20% of businesses fail in their first year and around 60% will go bust within their first three years. Approximately 660,000 new start-ups register in the UK every year according to The Telegraph, so what are the reasons for such a high failure rate?

While there are many factors, the top two reasons start-ups fail is because:

  1. there’s no market need for their services or products, or;
  2. they ran out of cash.

These two reasons, like many of the others, could have potentially been avoided if they had consulted professionals early on in the process of setting up their business. Professionals such as accountants.

Here are 9 ways that new or early-stage businesses benefit if they consult an accountant earlier rather than later.

9 ways an accountant can help new businesses

They can help you…

  1. Identify whether your new business idea is feasible – an accountant can help you analyse your market research data to see if there’s enough demand for your product or service to sustain your business. They can also assist with outlining your business goals too.
  2. Decide on a business structure – choosing your business structure can impact your tax, personal liabilities, and asset protection etc. An accountant can help you choose the right one, saving you time and money in the process.
  3. Create a business plan – a big chunk of your business plan will be your financial forecast which outlines your business costs, revenue projections and the funding you will need. Naturally, an accountant is the best professional to help you with this cost analysis.
  4. Secure funding – accountants can advise you on which lenders to approach as well as helping you create your loan pitch. They can help you create an accurate and reliable economic forecast for your business.
  5. Register your business – you will need to register your business with the government and the Internal Revenue Services (IRS). An accountant can assist with this as well as registering you for tax, applying for licenses and permits you may need, and setting up your business bank account.
  6. Choose the best business insurance – an accountant can advise you on the best insurance options to ensure you have complete protection at the most cost-effective price. They can help with property and vehicle insurance to professional liability and business interruption insurance.
  7. Make the right recruitment decisions – from advising you on recruitment decisions (e.g. whether a part-time employee or outsourcing makes more financial sense) to helping you with payroll and auto-enrolment, accountants can help significantly when hiring employees.
  8. Set up cloud accounting software – accountants can help you run your business more efficiently by looking at your processes and advising on the most appropriate cloud accounting software. Some even offer migration, set up, and training services when it comes to software too.
  9. Plan for the future – great accountants become a trusted member of your team. They help you set your business goals and they provide you with ongoing advice and support throughout the years to help you achieve them.

Always seek an accountant’s advice when starting a new business

Failing to properly plan for the financial needs of a new business will undoubtedly lead to challenges. Challenges that could lead to the complete failure of the business if left unaddressed.

By getting an accountant involved as early as possible in the process, they can identify and mitigate any risks for you and help you budget and forecast your finances. With an accountant by your side, you’re far more likely to be a part of the 40% of new businesses that survive the 3-year mark!