8 Things your accountant can do for your Business

Accounting is vital for keeping in full control of your finances whilst ensuring you are being as tax efficient as possible. Not only can hiring an accountant help you free up your time, but they can also provide a myriad of tasks on your behalf to help you and your business grow. Here we discuss 8 things your accountant can do for your business.

Ensuring you pay the correct amount of tax

Whilst it is never good to pay more than you need to for tax, not paying enough can lead to being severely penalised. Therefore, it is vital that you ensure you are paying exactly the right amount so that you can remain as tax efficient as possible. This is where the expertise of an accountant will be beneficial. With tax law changing so rapidly, it can be extremely difficult for non-financial professionals to keep abreast of all of these amendments. Accountants are here to do this for you. They must keep up to date with the tax laws in order to help all of their clients, so they are experienced in the changes and will know exactly what you need to pay. They can help you carry out your tax returns and this means you do not have to worry about any penalties coming your way. In fact, you can also end up saving a significant amount by having an accountant help you. Accountants know if you are eligible for any government incentives, know what you can claim as business expenses, and this, therefore, leaves you and your business with the most tax-efficient strategy possible.

Improve cash flow

Cash is king and therefore cash flow is a vital part of any business’ success. However, for a lot of business owners, especially startups, it can be a challenge to stay on top of the finances, especially when there are a lot of outgoings initially. Even if you are an established company that looks like it is profitable on paper, you may not have a healthy cash flow, which is cause for concern. Accountants can analyse your cash flow closely, show you where potential risks lie, whilst also highlighting potential areas that could be cut back on, therefore saving you precious funds.

Help setting up companies

You do not need to be an existing business that is already trading to have an accountant. Startups can also benefit greatly from hiring an accountant from the beginning stages. For example, they can offer you business advice on the best legal structure for your business and can also offer you an unbiased opinion on your business plan to help it succeed.

Business advice

Accountants are no longer here to only do bookkeeping. Their skills are diverse and established, meaning they are in a position to offer their clients a lot more. In addition to the regular accounting tasks such as bookkeeping and payroll, they can also act as business advisors and help businesses to grow. From helping you establish which areas of your business are the most profitable to helping you set realistic targets, they can help your business grow in a sensible and data-driven way. By having this close working relationship with your accountant, not only will you easily save money in the long run, you could end up with an edge over your competitors.

Help with selling your business and exit planning

There will inevitably come a time when you want to leave your business. Whether you want to sell it or pass it onto the ownership of a family member or employee, an accountant will be able to help you and advise on the different options available and discuss with you which is the best route for you to take. They can also help you with mergers and acquisitions if you want to acquire new businesses as well. They deal with this on a regular basis, so their knowledge and input can be priceless.

Help you apply for loans and funding

In order for your business to grow, you may need additional funding. Your accountant can help you secure finance from a bank in the form of loans or help bring other lenders and investors on board. They can help you prepare the correct information to help show potential investors you have a strong financial case and a great business opportunity.

Bookkeeping

Bookkeeping remains a fundamental part of running a business, so your accountant will be able to carry this out on your behalf and ensure that you always have access to up-to-date financial information.

Audits

Your accountant will also be able to help you with any audits. When a business is over a certain size, it becomes a requirement to have an audit carried out regularly. However, no matter what size your company is, having internal audits carried out frequently will help ensure everything is ticking over nicely financial wise and that they are never any nasty shocks. They are also a great way to see if your business is heading in the right direction towards a certain business goal that has been set.

Accountants are no longer here to just help you with your bookkeeping. Whilst this is still important, their range of experience and skills can be used for so much more. By having a great working relationship with your accountant and ensuring you are utilising all of their skills, you will be in a great position to benefit from this partnership. When used effectively, the skills of an accountant can help you save money, reduce business risks, keep up to date with regulations, and plan for the future. These tasks can be daunting, however with the help of an experienced accountant, they can become a lot more achievable with significantly less stress involved.

It is important to know the full suite of services your accountant can provide you. Start by having a meeting with them to explore more about how they can help you and your business.