Ask most people what they think an accountant does, and the answer will most likely revolve around taxes, tax returns and tax relief. Yes, a large part of what an accountant does is related to all things tax, but that’s just the tip of the iceberg.
A qualified and experienced accountant can offer so many more services and benefits, many of which are specifically designed to make your life easier and your business more successful.
So, if you’re avoiding the expense of an accountant because you think taxes are all they handle, or if tax returns are all you’re asking your accountant to do, it’s time to start utilising them more fully to your advantage.
What can an accountant do for me?
Hiring an accountant isn’t just about ticking compliance boxes and making sure you don’t get a fine from HMRC for missing your tax return deadline. Working with an accountant is one of the best ways to bolster your business and one of the smartest decisions you can make if you want to improve cash flow, manage budgets, and grow.
While they are financial wizards, know their way around bookkeeping software better than anyone, and can indeed help you dodge HMRC penalties, accountants bring much more to the table, including:
- Helping you choose the best structure for your business
- Preparing business plans and pitching for funding
- Setting up your accounting and bookkeeping software for you
- Explaining complicated rules and regulations, and how they work in practice
- Helping you invest in your business in the most efficient way possible, including managing any tax relief which might be available
- Estate and will planning or planning for retirement – including pension efficiency
- Helping you navigate currencies and tax implications if you have international customers
- Coaching you through big (money-related) life decisions like buying a house or starting a family and making sure your finances are stable
As well as all those practical things, an accountant can also just be there as a shoulder to lean on. Running your own business can be stressful, so having someone else to turn to as a sounding board can help manage any anxiety!
How can an accountant help me with my startup business?
If you’re starting up a small business, being savvy with your finances and making smart financial decisions is critical. Looking after your cash flow, spending sensibly and understanding your tax liabilities and any opportunities to claim relief or allowances will increase your chances of success as you launch and grow your venture.
The benefits of an accountant for a startup business include:
Getting the business set up and registered legally
They can help you form your business and decide what legal structure is best for you. They’ll also get you set up with HMRC.
Help with grants, funds, loans and investments
Not only can an accountant steer you in the direction of funding opportunities, they can also help you nail your applications and pitches. This includes helping you write and strengthen your business plan.
Keeping your tax bill down
An accountant will know far more than you about what tax relief is out there for you. They’ll ensure you’re taking advantage of as much as possible to help minimise your tax payments.
Setting good bookkeeping habits from the beginning
Your accountant can get you set up with your chosen software and show you the ropes so you can start as you mean to go on. After all, meticulous bookkeeping is the backbone of accurate accounts!
Saving valuable time
Leaving your accounting to a professional will save you heaps of time you can then invest in getting your business off the ground. This will reduce both your workload and your mental load. An accountant will also be able to show you ways you can automate processes through your bookkeeping software to save even more time.
How can an accountant help me save money?
As a business owner, one of the biggest benefits of working with an accountant is all the ways in which they can help reduce what you’re spending.
Although paying for an accountant’s services might seem counterproductive for a small or new business trying to preserve cash, the investment has the potential to pay for itself tenfold in the long run.
Tax deductions you might otherwise never have known about
You might think you’ve got all bases covered but an accountant will be able to root out tax relief opportunities you probably didn’t even know existed. Installing energy-efficient windows or solar panels could help knock money off your tax bill and make your property more efficient!
Accurate financial forecasts and projections
Part of an accountant’s skillset is generating accurate financial forecasts and reports. Using this data is key for better budgeting, sensible spending, and spotting opportunities. You’ll also need this information if you ever apply for loans, grants, or other types of funding. Anybody you ask to put money into your business will almost certainly want to see your financial situation.
Spotting potential issues before they become real problems
With their expertise and experience, an accountant will be able to identify any anomalies or risks to your cash flow much sooner than you could. You’ll be able to react more quickly to things like fraud, insufficient funds, or payment issues.
It also means you can be proactive and not just reactive in protecting your cash flow. An accountant will be able to tell you when it’s time to tighten the purse strings to keep your profits looking as healthy as possible.
Finding the right accountant for you
Not all accountants are created equal. As with most professions, some accountants are superstars, some are pretty good and others are best avoided. So, if you don’t already have an accountant or you’re looking to switch, it’s important to do your research.
Read reviews, ask for recommendations and keep an eye out for the right qualifications and certifications. Some accountants will even offer a free, no-strings consultation so you can meet with them first and get answers to any questions you might have.
As well as finding an accountant with a good reputation, it’s also essential to find one that will support you how you need to be supported. This could include finding an accountant who:
- Specialises in your industry or niche
- Has experience with startups, small businesses or sole traders
- Works remotely if that’s what you need or prefer, or is available on the high street if you prefer in-person meetings
Finding the right fit will ensure you get the most out of your accountant – and not just when it comes to submitting your tax return.
Check out our accounting support hub for more help, or to ask a free tax question!
