Category: Business Numbers

Should I Get a Business Loan?

Posted on | by Jade Donno

Should I Get a Business Loan?

Running a successful business often requires a steady flow of capital to cover various expenses and seize growth opportunities. However, not every business has the financial resources readily available to meet these needs. This is where business loans come into play. In the UK, there are several reasons why a business might consider getting a loan, and there are different types of loans available to cater to specific needs. In this blog, we’ll explore the various situations in which businesses seek loans and delve into the different types of business loans, including asset and invoice financing.

Reasons to get a business loan

Startup Capital

Many entrepreneurs require initial funding to launch their business ventures. A business loan can provide the necessary capital to cover expenses such as equipment purchase, marketing, and operational costs during the early stages.

Expansion and Growth

As businesses grow, they often need additional funds to expand operations, open new locations, or introduce new products or services. A business loan can fuel these growth initiatives.

Working Capital

Maintaining a healthy cash flow is essential for any business. Sometimes, unforeseen expenses or fluctuations in revenue can lead to cash flow gaps. A short-term business loan can bridge these gaps and keep operations running smoothly.

Equipment Purchase

If your business relies on specialised machinery or equipment, financing options like asset financing can help you acquire these assets without straining your cash reserves.

Stock Management

Businesses with seasonal fluctuations may need funds to stock up on their stock during peak seasons. A business loan can ensure you have enough stock to meet customer demand.

Debt Consolidation

If your business has multiple outstanding loans or high-interest debts, consolidating them into a single, lower-interest business loan can simplify repayment and save on interest costs.

Invoice Financing

Businesses with outstanding invoices can use invoice financing to access a portion of the money tied up in unpaid invoices. This can improve cash flow and help meet immediate financial needs.

Types of Business Loans

Term Loans

These are traditional loans with fixed terms and interest rates. Term loans are suitable for various purposes, including expansion, purchasing equipment, or funding working capital. In the UK, you can find term loans from banks, online lenders, and financial institutions. Your accountant may also be able to help you find the best loan for your business.

Business Lines of Credit

A business line of credit in the UK functions similarly to a credit card. It provides businesses with a predetermined credit limit, and you can draw funds as needed. Interest is only charged on the amount borrowed. It’s a flexible option for managing short-term expenses and working capital fluctuations.

Asset Financing

Asset-based loans use your business assets, such as machinery, vehicles, or real estate, as collateral to secure the loan. In the UK, asset financing is common for acquiring or refinancing assets. It allows businesses to access capital while retaining ownership of essential assets.

Invoice Financing

Also known as invoice factoring or discounting, this type of financing is prevalent in the UK. Businesses can access a portion of the money tied up in unpaid invoices. Invoice financing improves cash flow, which is crucial for meeting immediate financial needs while awaiting client payments.

Start-Up Loans

For new businesses in the UK, the Start-Up Loans program offers government-backed loans with low interest rates. It’s designed to help entrepreneurs kickstart their ventures.

Overall

In the UK, there are several types of business loans to meet a wide range of financial needs. Whether you’re a startup in need of initial capital, an established business looking to expand, or a company facing cash flow challenges, understanding the available loan options can help you make an informed decision. It’s advisable to consult with financial experts or loan advisors who are familiar with the UK market to identify the most suitable financing solution for your specific business circumstances.

What Lenders Look for When You’re Applying for a Business Loan

Posted on | by Jade Donno

What Lenders Look for When You’re Applying for a Business Loan

Securing a business loan is a critical step in the growth and success of your company. Whether you’re launching a new venture, expanding an existing business, or addressing financial challenges, understanding what lenders look for can significantly improve your chances of approval. One crucial aspect lenders consider is your financial forecast, and your accountant can play a pivotal role in helping you with this vital element of your loan application.

What Lenders Consider

Creditworthiness: Your Personal and Business Credit Score

Lenders place great importance on your creditworthiness. They examine both your personal and business credit scores to evaluate your risk level. A strong credit history demonstrates your ability to manage debt responsibly. If your credit needs improvement, working with your accountant to address this issue is an essential step.

Business Plan and Purpose

Lenders want to understand how you plan to use the business loan and whether it aligns with your business’s objectives. Your accountant can help you develop a well-thought-out business plan that demonstrates a clear vision for your company’s future. This plan should include details on how the loan will be used, target market analysis, competition insights, revenue projections, and a repayment strategy.

Financial Statements

Your accountant can provide you with accurate financial statements, including balance sheets, income statements, and cash flow forecasts. These documents offer lenders insight into your business’s financial health, profitability, liquidity, and ability to repay the loan. Maintaining precise and up-to-date financial records is crucial.

Forecasting Your Financial Performance

Accurate financial forecasting is where your accountant’s expertise truly shines. Lenders want to see that you have a realistic plan for generating revenue and repaying the loan. Your accountant can assist in estimating future income, expenses, and cash flow, ensuring that your financial projections are robust and credible.

How Your Accountant Can Help

  1. Credit Score Improvement: Your accountant can guide you on actions to improve both personal and business credit scores, making you a more attractive candidate for lenders.
  2. Business Plan Development: Collaborating with your accountant on creating a comprehensive business plan that showcases your business’s potential and loan repayment ability.
  3. Financial Statement Management: Ensuring your financial statements are accurate and up-to-date to present a clear picture of your business’s financial health to potential lenders.

    Conclusion

    Securing a business loan involves several key considerations, including creditworthiness, a well-crafted business plan, precise financial statements, and accurate financial forecasting. Your accountant is a valuable resource in addressing these aspects and can play a crucial role in improving your chances of loan approval.

    At 1Accounts Online, we understand the importance of your accountant’s expertise in your financial journey. With the added advantage of our partnership with Swoop, you can access an even wider range of financial solutions. Contact us today to take the next step toward achieving your business goals, with your accountant by your side and Swoop’s support in securing business loans, grants, and credit score improvement.

    Elevating Business: 1 Accounts Partners with Swoop

    Posted on | by Jade Donno

    In the ever-evolving landscape of business and finance, staying ahead means leveraging every available resource to fuel growth and efficiency. That’s why 1 Accounts Online is thrilled to announce our partnership with Swoop, a move set to revolutionise the way our clients manage their finances, access funding, and combat the energy crisis.

    Why Partner with Swoop?

    Swoop is a renowned platform that simplifies and speeds up access to loans, equity, and grants for businesses. Their expertise in financial solutions, combined with our accounting prowess, creates a synergy that promises to bring unparalleled value to our clients.

    What This Partnership Means for Our Clients.

    1. Enhanced Funding Opportunities:

    Gain access to a broad range of funding options tailored to fit your business needs. Whether it’s a loan, equity finance, or grant, our combined efforts make the search and application process easier than ever.

    2. Energy cost savings:

    In today’s world, being energy efficient is not just good for the planet, it’s essential for business success. Our partnership with Swoop opens the door to innovative solutions that reduce energy costs, contributing to a healthier bottom line and a greener planet.

    3. Empowered Financial Decisions:

    Knowledge is power, especially when it comes to financial planning. With our collaborative tools and expertise, you’ll have a clearer understanding of your business’s financial health, empowering you to make informed decisions that spur growth.

    Looking Ahead

    The business world is dynamic, and so are the needs of our clients. This partnership is just the beginning. We are committed to continuously exploring innovative ways to provide value and support to our clients at every stage of their business journey.

    Are you ready to explore how this partnership can benefit your business? Reach out to us today to learn more and take the first step towards a more prosperous and efficient future.

    13 Ways an Accountant Can Help a Small Business Owner

    Posted on | by Jade Donno

    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.

    7 ways to have the right mindset for growth during a recession

    Posted on | by Jade Donno

    A fixed mindset is thinking that the recession means business stops and clients don’t want to spend money.
    A growth mindset is using this recession as an opportunity to adapt and do things differently.
    You bees the second mindset if you want to grow your firm doing the recession.
    The only thing holding you and your firm back from growing right now is you. To help you move your practice forward, both now during the pandemic and during any future recessions, here are 7 mindset shifts you need to make.

    1) Make peace with your reality

    Suffering is what happens when you resist what is already happening. The sooner you confront the current reality and accept it, the quicker you can move past it.

    2) Hold yourself accountable

    If you want to grow, you need to think of the acronym R.O.A.D. You need to take Responsibility for the choices you’ve made, you need to take Ownership of where you want to go, you need to start taking Action, and you need to be Decisive. When making your strategy plan, be 100% accountable for putting it into action.

    3) Don’t compare yourself to others

    Some businesses are struggling, others are thriving. Don’t compare yourself to either. Every business owner, firm, and situation is different, so don’t disrupt your focus with doubt.

    4) Prioritise delivering value

    Concentrate on delivering exceptional service to your current clients. How can you offer extra value during this time? This will make you invaluable and it will ensure that you stand out from your competitors.

    5) Focus on your strengths, not your ‘failures’

    What work are you good at? What do you love to do the most? Which clients are your favourites to work with? Being positive during this time is essential, so focus on what you love and reflect on your principles and values. Rediscovering why you do what you do is very powerful when it comes to self-motivation and drive.

    6) Fail fast and achieve quickly

    Inaction is the worst thing you can do, not trying something and failing. During a time of such change, don’t procrastinate and don’t be a perfectionist. Take action, fail fast, learn from your mistakes, and concentrate on getting there first (not doing it perfectly and getting there last).

    7) Be grateful and become self-aware

    Practice gratitude every day by thinking about what you are grateful for both now and in your future. Also, take time to reflect and to rediscover your purpose. If you’re confident and happy, you will attract similar clients.

    Adapt AND adopt

    We have all had to adapt to some degree during the pandemic, for example, being forced to adapt to working from home. Changes such as these are necessary to our ‘survival’ during this time.
    With that being said, however, it is the accountants who have both adapted and adopted changes of their own, who have thrived. These are the individuals who make quick and effective decisions, who take responsibility for changing their situation, and who take action.
    Anyone can grow their firm during a recession, they just have to have the right mindset.

    Hiring an accountant could save your business!

    Posted on | by Jade Donno

    A lot of new businesses fail. A lot of old businesses fail. A lot of previously successful businesses fail. Why? Usually, it comes down to issues around finances.

    If you’re starting a new business, or if you’ve been in business for years and are trying to grow your team and scale your company, hiring an accountant can help. Here’s how.

    1) They help you become more tax-efficient

    Tax isn’t easy. Legislation changes all the time and any delays or mistakes could be costly. With an accountant filing your taxes for you, you can have the peace of mind that it is all being done correctly and on time. Not only that, but it saves you a lot of time and resources AND it saves you money. Accountants can reduce your tax burden by identifying opportunities for deductions, and they can help you avoid any government fines.

    2) They mitigate the risk of financial mistakes

    Accountants know how to identify financial risks and avoid them before they become major problems. What this means for you is that you’ll never spend money you don’t have, you will save money in all the areas you can, and you’ll be more aware and better equipped to stick to a proper budget. Fewer to no financial mistakes means minimal losses and more profit!

    3) They actively help you to grow your business

    If you get an accountant on board in the early stages of your business, they will help you to develop a plan for growing your business in the right way. Not only that, but they will also ensure that your finances are handled correctly from the beginning so that it doesn’t take over everything else in the future. As your business grows, they will start to provide advice in other areas such as budgeting and financing; payroll and recruitment, cashflow forecasting and investments, and business strategy. They will work with you to ensure you have the financial capabilities and processes needed to work towards your business goals.

    Survive and thrive!

    Most new businesses fail because of financial issues, so don’t make the same mistake. Hire an accountant as early as possible and get the guidance and expertise needed to take your business to the next level. They will not only help you save money, but they can help you make money as your business grows too.

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

    Posted on | by Jade Donno

    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.

     

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

    Posted on | by Jade Donno

    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.

    Accounts receivable vs accounts payable: what’s the difference?

    Posted on | by Jade Donno

    You can only manage your finances effectively if you know certain numbers and, as we all know, credit control leads to consistent cash flow which is vital for business success.

    To help you manage your financial processes more effectively, here are two numbers that you need to know: accounts receivable and accounts payable.

    What are accounts receivables?

    Also known as AR, your accounts receivable refers to all outstanding invoices that have been sent to clients but are yet to be paid. In simpler terms, this number is the money owed to your business.

    Whether it is overdue invoices or lines of credit, all of your receivables are classified as a current asset. Why? Because they should all be turned into cash within 12 months.

    If you are having trouble recovering your accounts receivables click here for some extra tips.

    What are accounts payable?

    As you can probably guess, your accounts payable is the opposite of your receivable. This is a record of all outstanding invoices that have been sent to you by your suppliers or creditors. To put it simply, this number is the money your business owes.

    Inversely to your receivables, your payables are classified as a current liability.

    Why is it important to know these numbers?

    To be successful, every business owner needs to know how much money is coming into the business and how much money is going out. And that’s exactly what payables and receivables are.

    • Accounts receivable = money owed to your business (ASSET)
    • Accounts payable = money you owe (LIABILITY)

    These make up the foundation of accounting as once you know these numbers, you can start to implement effective credit control processes to build a consistent cash flow.

    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.

    Start managing your finances effectively

    When it comes to your credit control processes, consider digital accounting software and a digital payment process. This will help you to get paid quicker and on time, and it will allow you to get an overview of your finances in real-time.

    With reports regarding your payables and receivables, you can make sound business decisions whilst managing any financial risks. The result? A successful business with a healthy cash flow!

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    7 Ways an Accountant Can Save You Money

    Posted on | by Jade Donno

    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.