Entrepreneurs who want to ensure the continual success of their small business should give some serious thought to using an accountant for professional advice and assistance when it comes to company finances.
Many start-up firms do not have vast sums of money in the bank and that’s why some owners opt for the DIY approach for their accounting. However, what they may be unaware of is how much expertise accountants offer, going beyond keeping taxes in order, maintaining financial records and producing reports. A quality accountant has the skill and ability to review business data and offer realistic advice on what it needs to do to develop and grow.
Before even beginning operations, an accountant can suggest whether a start-up should operate as a sole trader, limited company, partnership or limited liability partnership, and also highlight any legal issue concerns. They should also be able to provide help on where businesses can obtain new finances, for example, by pointing out the benefits and drawbacks of loans and overdrafts for their specific operation’s situation.
Once established, accountants are able to offer advice on how to keep the business up and running thanks to their external, independent and professional qualified outlook. They can look at cash flow, profit forecasts and are able to monitor performance.
Meanwhile, by preparing VAT returns, year-end accounts, calculating how much money a business owes HM Revenue and Customs in tax and national insurance and dealing with all correspondence with the government department, it frees up time for owners to focus on their core duties.
Using their expertise in allowable expenses, accountants will be able to minimise the amount of tax businesses have to pay, saving owners vital cash amounts each year. They will also always be on top of changing tax legislation, which means they will always be compliant while a non-qualified business owner may miss out on potential savings if they carry out the duties themselves.
All these services ensure that businesses get excellent value for money when using the services of an accountant, making them a crucial part of any start-up operation.