5 Benefits of Using an Accountant for Your SME
Hiring an Accountant for Your Small Business
You might assume that outlaying costs for professional support might be something that’s best done when your enterprise has grown exponentially to the point of justifying spend, however the service of an accountant is something all SMEs should consider right from the off. Let’s take a look at some of the reasons why:
Accountants save you time and money
Even if you have experience with bookkeeping, doing your own books can be a real chore. It’s time consuming and tedious and a bit of a distraction when you should be focussing on other areas of the business, such as business development, marketing strategy and sales growth. An accountant will look at areas where you are losing money as well as opportunities where you can be saving it and even areas where you could be growing revenue.
They deal with complex issues like VAT
VAT returns are every business’s nightmare – not only is it the time when a large sum of money is payable, it’s also when accounts records need to be meticulously audited to collect accurate data on the exact monies coming in and going out. Get this wrong and you could be liable for a hefty fine or worse – an investigation from HMRC. It goes without saying that an accountant will save you this hassle.
They provide sound strategic advice
You will be best placed to understand what works and what doesn’t in terms of your business offering and your target customers, but accountants have a wealth of experience on how to make your business a success from a financial standpoint. They work with many different businesses across a variety of industries and are able to give strategic advice on things like tax planning and business compliance so you can take your business to the next level.
They look after financial records
Business accounting extends way beyond keeping the books up to date. Having your financial statements in order for things like balance sheets, income statements and statements of cash flow are incredibly important. Not only do these documents give transparency over the company’s financial performance and business activities, they are also used by creditors, investors and market analysts to evaluate a company’s financial health and earnings potential.
They carry out audits and overviews
In carrying out all of the above tasks, an accountant will perform regular audits of all financial records and statements. They will examine accounting systems for flaws, creating and maintaining internal controls, highlighting any fraud risk, interpreting financial data for unusual trends, and following up on potential fraud red flags.
Having a solid accountant for your SME means you will have your financial records in order, will have a clear picture on forecasts and trends and will be able to provide accurate and timely payments to HMRC. Ensure you find an accountant with the right accreditations who has experience working in your industry and the outlay will be a sound investment.