Choosing the right accountant or accounting firm for your small business can be a daunting task. There are many things you should consider when looking for the perfect accounting services, accounting software or accountants including their knowledge of your industry and any other specialties which may benefit you.
Establishing a small business requires a lot of work, and an accountant can help with that effort in many ways. Accountants can develop a business plan or bookkeeping system, which means filing annual tax returns and limited company accounts. This will allow the owner to concentrate on more important matters.
A good business accountant can help better streamline a growing company’s operations by making it more commercially effective and tax efficient. They may also be able to secure financing options for the future of the business. Importantly, accountants can also save you money by never wasting it.
It is easy to find someone who says they are a good accountant, but that is only the first step. Choosing the right accountant takes research and an understanding of what you need from them.
Why do I need an Accountant for business growth?
A good accountant can help your small business in numerous ways including:
Improving cash flow
Cash Flow (CF) is an increase or decrease in the amount of money in a business bank account, institution, or individual has. Cash flow is measured as total cash inflows and outflows minus any investment actions for a given period.
An accountant should be able to improve cash flow for your business by looking at the current financial state of your limited company and its historical data to determine the best course of action.
Managing tax liabilities
One of the biggest overheads of most businesses is the tax bill and the sooner you know how much it is going to be and when it needs to be paid, the better. An accountant will be able to plan and manage tax liabilities for your small business and give tax advice, making cash flow much easier to maintain whilst adhering to local laws as a business should have a standard of care so that no problems arise with the law. Accountants will ensure this by following the rules and regulations of their local area, which often includes adhering to rules set.
Managing payroll obligations and employee benefits
Payroll is a task that every business owner dreads, it can be long and monotonous and often spent thinking of the more productive tasks you can be doing to improve your business.
However, a good accountant will provide these services for you, and will take care of all the necessary paperwork. This is an essential service to ensure that you do not fall foul of your own local legislation in terms of employment rights, as well as making sure that each employee receives their full entitlement, making for a happy staff force.
Finding ways to keep business costs down
A business is expensive, but you want to make sure that your expenses aren't overtaking your profits. Making cuts and staring at data can be long and often very difficult if you don't know what trends you're looking for. The accountant will take care of this aspect for you. They'll make sure that your expenses are accurately documented, and they'll be able to tell you what changes can be made to either cut costs or increase revenue without changing the running of your business.
Identifying business growth opportunities and making plans to maximize them
As a business owner you're always looking for opportunities to grow. An accountant can help your business in this area as well. They'll be able to examine the numbers and give you solid advice on how you can grow without compromising your limited resources or making any unwanted mistakes. With their knowledge of best practices they'll be able to guide you in the right direction, so you can achieve success and maintain it for years to come.
Do I actually need an accounting firm or accounting software for my business?
It's not a legal requirement to hire a qualified accountant, it is possible for a small business owner to deal with their own finances and tax liabilities. If you have fewer customers and are dealing with a simple financial affairs such as few costs than handling your own finance is an ideal option. Online bookkeeping software like Us (FUTRLI) make this task easy to do!
While start ups may want to avoid the costs of an accountant, utilizing their services once or twice a year can improve income in the long run. Hiring an accountant for consultation upon filing your tax return or preparing annual accounts is also a good way to stay organized and ensure you filed correctly.
Maintain a good relationship with your accounting firm
Establish a positive working relationship with your accountant right from the beginning. It's a good idea to get together or speak with your accountant at least once every month, when he or she should be able to help you on a number of financial issues.
Take care of your finances by organising yourself – don't give a shoebox filled with faded receipts to your accountant when self-assessment deadlines approach. The less time your accountant spends filing tax returns and annual reports, the more time he or she has to spend filing tax returns and annual reports, resulting in a lower cost for you. Of course if you're using accounting software then this doesn't directly apply.
Accountants can help you through your whole journey
Accountants can assist you at every stage of your company's growth, as you can see. It doesn't imply that you need to employ one, but the appropriate accountant should make life easier for you so that you may focus on what you enjoy doing.
You're a good boss. You may direct your employees and tell them what to do. Leave the financial specifics to an accountant. If you use cloud-based small business accounting services and accounting software, you'll be able to keep track of what your accountant does, collect user personal data and always see your company's financial position at a glance.