Will An Accountant Save You Money
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- 17-03-2023
Have you been asking: will an accountant save you money? Penny & Pounds are trusted accountants working with small businesses throughout Redcar, Middlesbrough and North Yorkshire. From tax advice to avoiding fines and penalties, we look at how an accountant will benefit your business.
How an Accountant will benefit your business
When you own a small business that's steadily growing, you might feel capable of managing your own bookkeeping, finances, cash flow and taxes. However, those who employ business accountants, despite the immediate outgoings through hiring costs, often find they save their business money in the long run.
These professionals provide much more than simply checking your tax forms are in order and can prove to be a huge benefit for your small business. As highly-trained financial experts, accountants can provide unique insights into your company's finances.
Using accounting software and their professional perspective, they can help you understand the financial side of your business in more detail, giving you a clearer idea of how best to grow your business. This goes for established companies as well as small businesses. An experienced accountant can save you money, and with their skills on your side, there is no limit to the potential of your business.
Tax Advice
One of the main duties of business accountants is to ensure their clients' taxes are in order. UK tax regulations can sometimes be incredibly confusing, and staying up-to-date with the latest amendments to tax law can be difficult.
When these changes occur, so too does your company's tax position, varying depending on its structure (self-employed, limited company, partnership etc.).
However, staying abreast of current tax regulations and how they affect different types of businesses is one of the main duties of a business accountant.
They can apply their expert knowledge to your particular tax planning, making the most of your financial situation throughout the tax year to make your business as efficient as possible.
Relying on professional advice is always the best choice when it comes to your and your business' taxes. There are serious penalties for irregularities, and it is crucial your finances are transparent and accurate for HMRC (His Majesty's Revenue and Customs) and that you meet all your tax deadlines on the dot.
This is not only vital for avoiding penalties, but strict tax compliance also makes your company more attractive in the eyes of potential investors, making you a more enticing prospect.
Business Advice
As well as financial expertise, your accountant can offer bespoke business guidance to help you succeed, increase your profit margins and improve client relationships.
Most business accountants will have worked for numerous companies, finding money where others won't think to look for it. From financial forecasting to planning, your accountant can guide your business to success thanks to their experience, knowledge and unique insights into how successful businesses operate.
Financial Forecasting
Controlling your costs and having an efficient bookkeeping system can dramatically improve your business' cash flow. Cash is the essential force in any business, but especially so for small businesses and start-ups. Financial forecasting, which gives you a clear overview of your cash flow, is therefore vital for anyone who wants to succeed. Your accountant can make this a reality for you.
By providing detailed and easily comprehended financial information, your accountant will give you the data you need when making sound business decisions regarding your cash flow. With up-to-date information on your company's financial health, you will be in the best position to make the right moves. Unexpected cash flow issues are a clear sign of poor financial management.
With the help of a professional accountant, these shouldn't occur. Keeping track of insurance payments, rent, property rates and staff wages all fall under efficient cash flow management. While all this might be too much for you, especially while trying to run your business, an accountant's sole duty is to manage these elements.
Free Up Your Time
In today's competitive business world, time really is money, meaning the more time you spend worrying about your accounts, is money your business is losing.
Having a dedicated accountant to oversee your bookkeeping, tax, payroll and all other aspects of your business' finances, you are free to spend your time on what matters most - making your business a success. Not only this, but your accountant will be able to arrange your finances much quicker than you will, allowing you to make the right moves sooner rather than later.
More Tax-efficient Accountants
Accountants can also increase the tax efficiency of your business. They know all the exemptions, tax deductions, tax relief or credits your company will be eligible for, ensuring that you don't pay any more tax than you need to. Minimising your tax bills will also greatly benefit your company and your profits.
Growing Your Business
Good accountants will have seen numerous businesses blossom from start-ups to certified profit-makers, putting them in the best position to offer invaluable business advice.
From assessing your most valuable clients to suggesting realistic financial goals, an accountant is the best person to ask when you want to know how to grow your business sustainably.
Making the right decisions is key to succeeding in business, and with professional advice from an experienced accountant can see your profits reach new heights.
Most small businesses don't bring chartered certified accountants in to manage their books, which is possibly why most of them end up with confusing finances causing them to flounder and fail. Clarity and forecasting from an accounting professional will help you to chart the right course for your business.
Avoid Fines And Penalties
Filing your taxes correctly is vital to avoid penalties and fines from HMRC. Again, UK tax legislation changes all the time, and it is a job in itself to keep track of them and how they affect your business. But this job falls under the remit of a professional business accountant, so you can leave the tax compliance to them.
You don't want to wind up in HMRC's bad books just because you've misunderstood UK tax laws. Having an accountant gather the information and file your tax returns is the best way to remain compliant while reducing your tax burden by entirely legal means.
Identify Opportunities For Growth
Your accountant will have the most thorough understanding of your finances compared to other staff members, putting them in the unique position of being able to offer insights and discover potential growth opportunities to generate money through financial support.
Accountants understand better than most how your business is performing through the data they gather, meaning they can see where savings can be made and where potential profits may be hiding.
Help Gain Funding
Obtaining loans or gaining funding to grow your business can be a drawn-out process putting a significant strain on your available time. Therefore, why not have a professional accountant who understands every aspect of your business to arbitrate on your behalf?
Stamping Out Mistakes
While having strong numeracy skills is an obvious benefit, not every business owner will be confident in their abilities. Since your finances are crucial for the success of your business, you don't want to make any serious mistakes with your adding up.
Many small business owners are too busy to carefully pour over every digit, another reason business growth accountants are so valuable to those just starting out on their business journey.
Professional accountants work with numbers every day, making them the perfect people to streamline your financial processes, guaranteeing accuracy.
Since HMRC can fine you for any mistakes in your numbers, meaning the accuracy of your accounts is paramount to your expenses. Avoid these issues with the help of a qualified accountant.
Not only will your accountant be able to stamp out mistakes in your financial reporting, but they can also reduce mistakes in other areas of your business. From your bookkeeping to generating a detailed business strategy or plans, accountants can help you reduce costs and plan for the long term.
Are you looking for payroll accountants in Redcar, Middlesbrough and North Yorkshire? Penny & Pounds can help you organise your bookkeeping and accounts.