There are two huge mistakes that many start-ups or small business owners make. The first one is trying to manage their own accounting system. This is often done incorrectly which can hurt the business in the long-term. The second mistake is assuming that an accountant is only good for managing accounts and filing Tax or VAT returns.
An accountant is a financial guru and an all-around business advisor all in one. Accountants are an incredibly valuable member of any small business team as they can offer a lot more than just accounting to small business owners. Here are 13 ways accountants can help:
1) They can help you go from business idea to start up
They will give you advice on what you need to create the foundation for a successful business e.g. determining the best business structure, creating your business plan, opening a business bank account etc.
2) They can assist with the financial analysis in your business plan
They can also help with loan applications and forecasting.
3) They analyse your finances to determine where your business’ money is going
They can then advise you on where to make improvements in your processes and cash flow so your business can scale and grow.
4) They will explain your financial data so you can make financial decisions with confidence
A good accountant will break it down so you understand the ins and outs of your business at all times.
5) They close out your books and create end-of-year financial reports
With your reports, an accountant will recommend changes to budgets or forecasts.
6) They compile and submit your taxes and financial reports to HMRC and Companies House
As well as submitting, they can also calculate VAT, provide advice on estimated tax payments, and provide guidance.
7) They make sure that your accounting procedures comply with government regulations.
Legislation changes all the time. An accountant keeps up to date with these so they can check your company’s tax position and keep you compliant.
8) They oversee your company payroll and payment process
They can help you streamline your business processes to work smarter, not harder.
9) They can help you streamline your business processes to work smarter, not harder
They can provide advice on the type of accounting software that’s suitable for your business, how to track your expenses, and also invoicing and payroll. More time means more earning potential!
10) They can identify risks in financial transactions to prevent fraud
Many business owners want to identify investment opportunities too. An accountant can provide advice on this and check whether an investment is solid.
11) They can help you identify areas for growth in your business as well as ways to save money
By looking at cash flow patterns, inventory management, your pricing, business financing.
12) They will work with you to create a business budget and stay on track
Every business owner needs a budget to support their business goals. An accountant can actively help with this.
13) They can advise you on all the big things
Reports, taxes, audits, business strategy, you name it and they can probably help you with it. Need advice on property or equipment leasing and purchase? Need guidance or resources to assist with scaling the business? Guess who can help – Accountants!
Accountants are key to business success, wherever you are on your business journey
These are just some of the ways that accountants can work with you to support your business. Whether you’re launching a start-up, you’re a small business owner who needs help with running the business day-to-day or you’re wanting to really scale your business, an accountant can provide essential advice and guidance, every step of the way.