Hiring an Accountant: 9 Big Benefits for Small Businesses
December 21, 2018
Small businesses also have small budgets, so it’s easy to see accounting as something you can live without. Sure, you can balance your own books and do your own basic accounting.
However, an accountant can help you stay in line with UK business and tax laws, and save you time and money. An accountants in Leeds can offer benefits to your business that are well worth the investment.
In fact, a good accountant will more than pay for themselves by helping you to increase your profit. All types of small business owners can benefit from hiring an accountant, including freelancers and contractors. Here are the top nine ways hiring an accountant can benefit your business.
Accounting for your business takes a lot of time, particularly if you don’t have a lot of experience with accounting. You chose your business because it’s something you are good at. You are talented and enjoy what you do. Hiring an accountant allows you to spend more time doing the work you are good at.
Making Tax Digital
The HMRC’s Making Tax Digital plan has requirements that you may not be familiar with. If you still do things the old fashioned way, you may find the digital records requirements daunting. An accountant can explain these requirements and handle them for you.
Penalties from filing taxes late, underestimating your tax bill, or missing out on deductions can also result in significant costs for your business. You’ll find allowing a professional accountant to do your taxes for you is well worth the time you’ll save and your peace of mind, in addition to avoiding financial issues.
You’ll also need to prepare a statuary accounts report at the end of your business year along with your tax return. In addition to sending this to the HMRC, this will be sent to shareholders, those who attend general meetings, and Company house.
This must include a balance sheet, a profit and loss account, notes about accounts, and in many cases a directors report. Preparing the report can be time consuming and stressful. An accountant can ensure that it’s done properly, and keep you in good legal standing.
Revenue projections are important for your business. This is essentially an educated guess about where your business is headed financially. An accountant will look at the growth of your business, marketing trends, and other factors to give you an estimate of how much you will earn in the future.
This information can help you know when to launch a marketing campaign, hire new employees, increase production, and manage cash flow.
It’s been said that money behaves when you tell it to. If you have a personal budget, you know what a difference it makes in spending your money wisely.
Creating a budget for your business is more complicated. An accountant can help you create a realistic budget for your business. This allows you to control your expenses and see where your money is going.
Are You Profitable?
One of the most important aspects of running a business is knowing whether or not you are profitable. A business that isn’t making money won’t be in business very long.
If you aren’t making a profit or your profits are declining, you can turn things around. However, you have to know there’s a problem. You also have to know what the problem is.
If you catch it early, you can turn things around before you reach the point of no return. An accountant can help you be proactive and see potential business downturns as well as point out problems. This allows you to fix issues and prepare for lean times. All businesses go through rough periods. It’s how you handle them that make or break your business.
Is Your Marketing Affective
Marketing is important for every business, big and small. The key is effective marketing. Is the money you are spending on marketing worth it? An accountant can look at what you are spending on marketing and how it is impacting your sales numbers.
They can advise you on which forms of marketing are effective for you, and which ones are costing you more than they are worth.
Today’s accounting agencies offer many different levels of services, so you can get the amount of help you need, without spending more than you have to. Whether its handling payroll, taxes, or full bookkeeping, hiring an accountant can make your life easier and give you more time to devote to your business.