If you take a professional approach to run your business and have future growth plans that you want to fulfil it is likely that you will need to use some like-minded external resources to help you achieve that aim.
If you decide to go looking for accounting services you are on the right track as hiring an account for your business can deliver a number of significant advantages.
Here is a look at some of the compelling reasons why using an accountant can benefit your business.
1. Time is money
When you are trying to focus on looking after your existing customers and increasing turnover by finding more people who want to do business with you, it is going to take up a lot of time and energy.
If you are spending too much time balancing your books and sorting all of the tax paperwork that goes with running a business it is going to mean less time available for doing what you do best.
Tax and accounting regulations can be deeply complex and you can easily spend far too many hours trying to fill in some paperwork that an account could easily handle for you.
2. You could end up paying too much tax
Every business owner understands that the role comes with a set of responsibilities, which includes complying with the tax authorities and paying any money that is due to them in a timely manner.
A good accountant who has plenty of experience when it comes to knowing all the complexities of tax laws could potentially save you money by reducing your tax liability legitimately.
From how you structure your business to how you pay yourself a wage and everything else that involves paying tax, an accountant should be able to identify the most tax-efficient options available to you so that you can pay the right amount of tax due.
3. A valuable opinion
Another aspect of using an account that is often underestimated is how their knowledge and expertise could help you to grow your business.
It is easy to get wrapped up in your own plans as to how you want your business to drive forward and succeed but there could be a better way of achieving that aim you are not seeing.
A good accountant should be able to provide you with a professional opinion regarding your business plans and check whether your numbers actually add up.
If you are going to need a loan to fund your expansion plans you will normally need a viable business plan to present to the lender to support your application. An accountant will know how to put this together in a format that can improve your chances of being granted the loan you want.
4. Networking opportunities
It is always worth remembering that top accountancy firms will always have plenty of good connections in the business community and that can be very useful to your business.
Experienced accountants will have clients who may be interested in collaborating or investing with you in a project and there are plenty of business successes that started with an introduction from a well-connected accountant.
When you are just starting out and trying to grow your small business the networking opportunities that an accountant might be able to offer you could prove invaluable.
5. Balancing the books
If there is one core discipline that many business owners struggle with it is running complex financial systems and balancing the books so that it is easy to get a comprehensive overview of the state of the business at any time.
You might not have the time, inclination, or know-how to use some highly technical accounting software and that is a scenario that could hold you back as well as leave you vulnerable if you don’t spot a financial problem that needs resolving.
It makes perfect sense to take the attitude that you are good at generating turnover and growing a business but entrepreneurial flair and accounting skills don’t always go hand in hand.
Using an accountant to help you get the most out of accounting software, produce financial statements and reports, and keep an eye on cash flow forecasts, is a no-brainer if it gives you the freedom to play to your particular strengths.
6. Plan for the future
Developing a relationship with an accountant could prove to be a smart move as it opens up access to a range of services and benefits that could prove extremely useful to you and beneficial to the smooth running of your business.
An accountant who has already helped other clients to map out their vision for the future could do exactly the same for your business and having someone who can cast a professional eye of your future plans and projects could make all the difference.
A fundamental aspect of this ability is their skill in being able to produce a gain and loss forecast that will enable you to gain valuable insight into the viability of your proposed project or expansion plans.
Using an accountant in this way starts at the very beginning when you are looking at launching a new business and want to know if your forecasts and financial structuring is robust enough.
Whether you are trying to keep on top of cash flow, want to be as tax-efficient as possible, or need some help with understanding the financial position of your business, these are just some of the many reasons why it could prove to be a good move hiring an accountant.
An accountant is not a luxury confined to large corporations, quite the opposite, as their services and skills have the potential to add value to your small business.
Trusting the financial health of your business to a professional who has all the accountancy experience you need will leave you with the time and energy required to concentrate on fulfilling your destiny by building a venture that grows with you at the helm.
Knowing your plans are on track by using an accountant is just one good reason why hiring a professional number-cruncher adds up as a sound strategy.