Friday 22nd March 2024
What are the benefits of an accountant?
There are many benefits to hiring an accountant for your business. Accountants have a deep understanding of what the numbers on financial statements represent and what problems they could be indicating.
Having an accountant in your team will improve a business's ability to make decisions because accountants can see beyond the numbers on financial statements.
Accountants can help with the Start-Up Process
One of the ways accountants help business owners is by using their extensive financial, business and tax knowledge to help set up a business for success. An accountant can help choose the correct business structure (LTD, Sole Trader etc). This is to help stay organised and in compliance with government regulations from the start.
Choosing the right business structure for the business will also help to determine how much a company has to pay in tax, the level of risk or liability to personal assets, and your ability to raise capital from different sources.
Accountants can help with business growth
Working with an accountant can help a business grow. When companies are experiencing growth or trying to achieve growth, accountants can help by giving business managers insight into cash flow management, inventory management, and business financing.
They can also help to create financial forecasts and budgets to help guide a business and ensure it is in line with the goals of that business.
Accountants can help with regulations & compliance
Accountants ensure that business owners are following government regulations, and they will ensure that important deadlines are met, for example, corporation tax deadlines, VA deadlines, and year-end account deadlines.
Business accountants can also help a company through an audit by providing the auditor with the correct company information. Having an accountant from the beginning ensures this process will go smoothly because the data will be organised.
Accountants can help avoid accounting mistakes
Accountants help businesses prevent financial mistakes that could lead to a financial loss. An accountant will prevent both small and large mistakes - like overdrafts to bank accounts, or missing a tax deadline that could result in huge penalties.