As the owner of a small business, you have a hundred different claims on your attention at any point in time. It, therefore, makes sense to hire an accountant who can handle the finances for you and help you stay on top of taxes, overheads, and other money-related matters.
What’s more, having an accountant does more than free up your time. You benefit from an experienced specialist who helps you stay compliant, save money and run your business more efficiently. Here are 12 ways your small business can profit from hiring an accountant:
1. Reducing workload
Perhaps the most obvious benefit you will enjoy if you hire an accountant is that you will make more time for the actual running of your business. That means no more poring over accounts to make sense of what you need to pay tax on or when your VAT payments are due.
As your business expands, your transactions will become more complex anyway; it makes sense to have an accountant around to help out.
2. Streamlining books of accounts
Accountants can give you clear and complete insights into how your income compares with your expenses. They will help you see whether you are making a profit yet or are close to it and point out potential monetary pitfalls in your transaction patterns.
Hire an accountant and get help to sort out your accounts using a consistent bookkeeping system (cash basis/accrual basis) and appropriate accounting software.
3. Paying the right amount of tax
Not paying your entire tax dues on time can get you into big trouble with HMRC. An accountant can calculate your returns correctly and handle all the tricky form-filling.
Plus, by going through your books, they can find new ways for you to save on tax by applying for government incentives or exemptions that you may be eligible for. Who doesn’t love saving money? Hire an accountant today!
4. Preparing financial statements
Hire an accountant to help accurately draw up financial statements, including your balance sheet and profit and loss statement. This is necessary for compliance purposes and enables you to make an informed call before investing in more assets or taking out further loans.
5. Improving cash flow
Regardless of how well-balanced your assets and liabilities are, any small business can get into trouble if it doesn’t have a proper flow of ready cash. Hiring an accountant can help you manage your cash flow so that all expenses are paid on time, which will improve the faith your creditors and shareholders have in you.
6. Reviewing documents and agreements
Your accountant can review any agreement you are entering into and pinpoint the tax and accounting implications involved. This will prepare you for any obligations you may have and help you avoid any negative situations regarding cash flow and financial planning.
7. Getting assistance in taking out loans
An accountant can help you take out the right loan for your business by presenting a suitable case to the lender. They enable you to put together the correct credit information and business records while identifying appropriate loan repayment sources. They will also help you pick from various financing options ideal for your business.
8. Handling regulations
Apart from tax, there are several regulations your business needs to comply with, and these go up the bigger your business is. Hiring an accountant helps you stay on top of all these regulations and steers you clear of costly mistakes.
9. Managing audits
Once your business crosses a specific size, a statutory audit is compulsory, which your accountant can help significantly with. Even for smaller companies, an accountant can run an internal audit to ensure that financial processes are running smoothly and that the business is on track to meet its goals. If you’re in a similar boat, hire an accountant!
10. Tracking your expenses
Accountants will help you get a handle on where your business money is going, including maintenance expenses as well as things like travel and entertainment costs. This will give you insights into expenses you can avoid while also prepping you for when tax season rolls around.
11. Reviewing your accounting needs
Your finances and financial needs will grow in tandem as your business grows. An accountant can keep track of this growth and make suitable recommendations on what needs to change, such as switching to a more advanced accounting software capable of handling more complex records. They will also address any changes related to cash flow, employee agreements, or tax requirements, which is particularly helpful if your business experiences a sudden growth spurt.
12. Offering tailored advisory services
As businesses everywhere become more and more virtual, your accountant can take on the role of a virtual CFO. They can assume complete control over your finances and offer advisory services beyond just taxes or monthly bookkeeping.
Experienced accountants will have worked with many businesses in your industry and will know how to navigate the common pitfalls and challenges. With thoughtful insights tailored to your needs, they can, in fact, help you make smarter financial decisions overall and grow as a business. Hiring an accountant will undoubtedly make your life easy!
Over to you
As a small business owner, you should ideally devote your time and expertise to strategic decisions about where to take your business.
An accountant can handle your finances much faster and more accurately than you can while also helping you stay within the law and save money.
Therefore, one of the best business decisions you can take in 2022 is hiring an accountant and benefiting from the saved time and expert financial leadership.
You embarked on this journey with an aim in mind — to build a successful business that stands the test of time. Why scramble to receive accounting help when you have Golding Accountancy by your side? Contact us today!