If you own a small business, you shouldn't overlook the importance of having an accountant to assist with your finances. You may be a great business person, but an accountant has the professional knowledge and expertise to help you make informed financial decisions.
Owning your own business is time-consuming, and it's hard to find the time to juggle everything and managing all your finances.
Save time
There's a lot to manage when running your own business, and one of the main benefits of having an accountant is the amount of time they can save you. An accountant can handle the tedious tasks associated with financial management and analysis, which frees up valuable time for you to focus on the bigger picture: your business. In addition to saving time, an accountant will keep your financial record and basic bookkeeping organised, which makes it easier when looking for information.
Keeping your finances and bookkeeping neat will only benefit you in the future - but it's hard to stay on top with without an accountant.
Save money
Having an accountant can help you save money and even increase your profits, given their expert knowledge in financial decisions. They provide valuable advice on making the most cost-effective choices for expenses, taxes, and other financial structures.
In addition, an accountant can help identify deductions and other strategies to reduce your tax liability, potentially saving you thousands every year. Moreover, an accountant can assess financial processes for existing inefficiencies, and make recommendations like streamlining financial reporting, setting up invoice and payment cycles, and developing internal controls for higher security.
Knowledge of regulations
Your accountant will also be knowledgeable in areas of accounting, tax law, and other regulations that could affect your business.
They can provide you with a wide range of financial services, such as setting up a budget, analysing your financial information, monitoring accounts receivable, and providing financial planning.
Hiring an accountant ensures you remain compliant with the relevant regulations.
Expertise
Aside from these financial services, one of the most significant benefits of having an accountant is their expertise. Not only will they be able to provide informed decisions on any financial matters you encounter, but their comprehensive knowledge of relevant laws ensures that your business remains compliant with relevant regulations. An accountant can also help detect any errors you may have made in order to quickly identify areas for improvement.
When deciding whether to hire an in-house accountant or to use an accounting service, there are a few factors to consider.
In-house
An in-house accountant provides the benefit of having a single point of contact for all accounting and finance activities. This can be especially helpful for SMEs, as the accountant can become familiar with the company over time and provide customised services and advice. Additionally, an in-house accountant offers some peace of mind in the form of confidentiality.
There are benefits of both in-house and external accountants, what suits you will depend on your business and the services you expect from them.
External
On the other hand, external accounting services, such as those provided by professional accountants, can be more cost-effective. This is especially true if the business has inconsistent or fluctuating accounting needs, as you can choose the plan that most accurately suits your needs. Businesses opting for this option must carefully inspect accountants and ensure confidentiality is strictly followed.
Costs for small business accountants in the UK can vary significantly depending on the services and level of experience you require. If you are looking for basic bookkeeping services, the cost should not be too high.
By contrast, if you're looking for a full-service accountant to handle all your accounting, taxes and financial planning needs, you should expect to pay significantly more. Often, the most experienced and qualified accountants will charge the highest rates, so this is something you should note.
An additional benefit of hiring an accountant is the ability to tailor the services you're requesting based on what you're willing to spend.
The benefit of hiring an external company for your accounting needs is that you can find the most suitable option for your business and tailor the plan to your needs. The price will vary depending on the company you go with and the expertise and services they offer.
Overall, having an accountant is essential for any small business. It gives you the extra help and expertise to make informed decisions. An accountant can be a great asset as you navigate the financial waters of running a small business. They can help you save time and money, become more efficient, and ensure your business remains compliant.
