Key ways an accountant can help a small business grow – Part 2Back 3 October 2019
We know you’ve all been eagerly awaiting part 2, so you’ll be pleased to know that it’s finally here! If you haven’t already, make sure you check out part 1 - you wouldn’t want to miss the first few pointers on ways an accountant can help your business to grow, would you?
So, let’s dive straight in…
Preventing/flagging up issues
Protecting you from costly investigations
- HMRC targets everyone, no matter how large or small a company. Tax investigations can often become a drawn-out process and the accounting fees involved in a routine investigation could amount to £10,000, even if you can provide evidence of compliance. Check whether your accountant offers fee protection, and if they don’t, we’d recommend finding one that does to ensure you are covered in the event of an investigation.
Resolving shareholder disputes
- Shareholder disputes can cause significant disruption to a company and are more common than you’d think. It is in the interest of all concerned to have them resolved as quickly and efficiently as possible. Keeping detailed, extensive accounts can help to prevent a financial dispute in the first place, but if there are questions around the numbers or accounting practices, accountants can help to bring a swift resolution. Anything beyond this, it’s best to revert to a legal advisor.
Providing employee advice
- Deciding when is the right time to take on a new employee can be difficult, and there are many considerations. Accountants shouldn’t provide HR advice, but we can help you to scope out the long-term impact hiring employees will have on your business. For most companies, a new employee becomes a financial burden when they are first hired. It takes time for a new employee to familiarise themselves with their role. In fact, depending on previous experience, it could take anything from six months to over a year for an employee to break even with their salary and become truly profitable.
- Additionally, it is important to know when it is appropriate to let people go. An accountant can help you spot if an employee is costing you more than they are bringing in, or if the company cannot financially sustain the current level of employees.
Applying knowledge to your business
- No one should know more about your business than you but, a good accountant can offer you additional insight into your business performance and the market you operate in which you might not otherwise have access to. They can benchmark your business against direct competitors and other similar businesses within your industry, which can help you gauge how well you are performing, but also how well you could be doing.
Helping you to achieve your business goals
Setting financial goals
- Setting financial goals is a good way to measure your overall business success. They are quantifiable and provide you with key milestones to track your progress over time. But, where do you start? An accountant can help you determine realistic targets.
Introduce you to new contacts
- Accountants often work with a wide variety of businesses and can facilitate introductions if appropriate. This is something our clients certainly appreciate. We have contacts working in HR, law, business growth, R&D, training, commercial property, recruitment, marketing and more.
Help you plan for future
- From identifying a trend in your industry and advising you on investment opportunities, to alerting you to a change in legislation such as the VAT domestic reverse charge, accountants can make sure you are prepared for changes which could affect your business.
- We can also advise on exit strategies or investments in commercial property, for example, and help you to plan for you and your business longer term.
Maximising your profitability
Minimise your tax bill
- The amount of tax you pay is dependent on an ever-changing set of variables. Keeping track of them can be time consuming and challenging, which is why you should have an accountant take care of it for you. Accountants will make sure you are set up appropriately and remain as tax efficient as possible throughout the entirety of the year, whilst also ensuring compliance.
Free up your time
- Understandably, numbers aren’t everyone’s cup of tea. Even if you are a numbers person, managing your books and submitting your accounts can take up a lot of time. Having an accountant you trust to take care of this for you will help free you up so that you can devote more of your valuable time to other business critical activities, such as finding and winning new business.
By now we hope we’ve demonstrated that an accountant can offer you a lot more than just submitting your tax and vat returns. The more you involve your accountant in your business, the more they can help it to grow. So, get in touch and let us join your business journey, because our mission is your success.