Many small businesses are reluctant to retain an accountant throughout the year, thinking that they can save money by doing routine bookkeeping themselves, and only seeking professional help when it comes to completing tax returns at the end of the year. However accountants can provide a valuable service year-round, helpingyour business in a diverse range of ways.Here are the top reasons accountants can help your small business, in ways you might not have thought of.
A proactive and forward – thinking accountant can help your small business right from the beginning. They can give you advice on your organisational structure – is setting up as a sole trader right for you, or should your business be registered as a company. They will also be able to help you to understand whether you must register for VAT or PAYE, and if so assist you in doing so.These can be quite difficult to get your head round when you’ve just started your business, so it’s worth consulting someone with more experience. If you’re seeking investment, they also can provide you with financial analysis to feed into your business plan. Importantly, though it’s often underestimated, they can give you sound advice on bookkeeping and accounting procedures, making sure that you adopt the right practices now and that you’re in compliance with regulations right from the beginning.
Once your small business is up and running, you’ll find that time management increasingly becomes an issue. Delegating some of your financial tasks can free up your time for focusing on the rest of your business. Accountants can help you to manage your payroll, carry out some routine bookkeeping and give you periodic advice on your financial situation. For example, they will have a good knowledge of your cash flow, and will be able to provide you with budgeting and forecasting advice on that basis. These are tasks that will have to be carried out if your business is to thrive, and it is more efficient and effective to hire an experienced accountant to perform them, even if you’re tempted to do them yourself.
That same knowledge base means accountantscan help your business as it begins to expand. By having a detailed knowledge of your cash flow patterns they will be able to determine promising areas for growth. Often accountants have experience with similar enterprises in your sector, which means they will be aware of common obstacles and lucrative opportunities that you should be watching out for as you grow. Once your business reaches a certain size it may need to be audited, and your accountant will be able to help you through that often difficult process. They will also be able to give advice on budget, property leasing and employment. Since those will all change as you expand, you’ll need the advice of someone with experience whenever you reach a new stage.
Though it’s often forgotten by entrepreneurs, retaining an accountant can actually let you reap greater rewards in the long run. With their knowledge of your finances and your sector they’ll be able to help your business grow smoothly at every stage. So if you’re interested in retaining an accountant, please get in touch with us. At DUA we’re experienced accountants in Watford, and we’d be delighted to work with you to help grow your business.