Find out what an accountant should do for your small business, from managing bookkeeping and preparing financial statements to handling taxes and offering strategic financial advice. 

Learn how professional accounting services can help streamline operations, ensure compliance, and support long-term growth.

How to Find a Good Accountant

Finding a good accountant is essential for the success and growth of your small business. The right accountant can help you manage your finances, save money, and provide valuable advice. 

Begin by asking for recommendations from other small business owners. Referrals from people you trust can lead to finding a reliable accountant.

Next, check online reviews and ratings to evaluate the reputation of potential accountants. Websites such as LinkedIn and local business directories can offer insights into the experience and performance of various professionals.

When narrowing down your list, look for accountants who specialise in working with small businesses. Experience in this area means they understand the unique challenges you face.

Ensure that the accountant is certified and registered with a professional body, such as the Association of Chartered Certified Accountants (ACCA). This guarantees they have the required knowledge and adhere to professional standards. Meeting potential accountants is also essential. Ask about their experience, services offered, and fees to ensure they fit your needs.

What Can My Accountant Do?

Accountants can help with various essential tasks to ensure your small business runs smoothly. Their services include:

What to Discuss During Your Initial Accounting Consultation?

During your initial consultation, it's important to cover key areas to ensure the accountant is a good fit for your business. Start by discussing your business plan and goals. This gives the accountant an understanding of your vision and helps them provide tailored advice.

Next, talk about financial reports and what you need to track. These reports could include profit and loss statements, balance sheets, and cash flow statements. Understanding these helps the accountant customise their services to suit your business by highlighting areas needing improvement or focus.

Regular tracking allows for timely decisions, helping to optimise financial performance and avoid potential issues. Discuss any specific metrics or KPIs that are important for your business to track closely.

Also, we encourage clients to enquire about the accounting services they offer and their experience with similar businesses. Understanding their expertise can assure their ability to support your needs. 

Discuss fees and what you get for the cost, ensuring it fits within your budget. Talk about their communication style and how often you will receive updates on your finances. Regular communication is essential for staying on top of your business finances.

Lastly, ask for references from other small business owners they’ve worked with, which can give you confidence in their reliability and competence.

When is the Best Time for a Small Business to Hire an Accountant?

Hiring an accountant at the right time is crucial for small business owners. The best time to hire an accountant is at the start of your business journey. Early involvement ensures your business structure and financial systems are set up correctly.

But, if your company is already operating, consider hiring an accountant when you start seeing growth or complexity in your finances. Rapid growth can lead to more complex financial reports and management needs. An accountant can help manage this growth, keeping your finances in check.

Other key moments to hire an accountant include during tax season, before applying for loans, or when implementing new technology or systems. These periods involve intricate financial work that requires expert knowledge.

Ultimately, whether it's managing cash flow, preparing for taxes, or seeking growth opportunities, an accountant can provide the support you need, ensuring your finances are always in order and your business is on the path to success.

Why is Accounting Important for Small Businesses?

Accounting is essential for small businesses for many reasons. It helps you keep track of your finances accurately, ensuring you understand where your money is going. It also allows you to assess how well your business is performing. Regular financial analysis provided by an accountant can reveal areas for improvement and opportunities for growth.

Tax preparation is another critical aspect. Proper accounting ensures you are prepared for tax season and compliant with tax laws, avoiding fines and penalties. Maintaining accurate financial reports helps when looking to secure loans or attract investors. It demonstrates your business's financial health and reliability.

Good accounting also helps manage cash flow, giving you a clear picture of your budget and allowing you to make informed financial decisions. With an accountant’s help, you can plan effectively for the future, set realistic financial goals, and check progress. 

This ensures you are prepared for potential financial challenges and can adapt to changes. Through diligent accounting practices, you can safeguard your financial stability and work towards long-term success.

Accounting also provides valuable insights that can help you identify cost-saving opportunities and manage expenses better. This, in turn, can save money and increase profitability.

In short, accounting forms the backbone of your business's financial health. It helps to support informed decision-making, ensuring compliance and encourages immense growth. Small business owners who invest in good accounting practices can expect a stronger, more resilient business.

Are you looking for an accountant for small business in Redcar, Middlesbrough and North Yorkshire? Penny & Pounds can help you organise your bookkeeping and accounts.