Whether you are just starting your business or an established one, you need the services of an accountant. An accountant will provide invaluable help to figure out your financial standing, cut business costs, and monitor your investment.
Managing your finances can be complicated, and if you lack understanding of business finances, you should leave it to a person qualified to do it.
How an accountant can help your business
At the beginning of your business, you have many actions to perform and several systems to set up. Your accountant will help put solid foundations in your business plan. You can get advice on the best legal structure suitable for you, such as being a sole trader, a limited company, or a corporation.
- You can get expert help from accountants in Central Londonto ensure that you stay in full control of your finances. They can help you reduce overheads and minimise business tax. With a good accountant, you can save money, comply with regulations, manage growth, reduce risk, and make future plans.
- Your accountant will ensure that you pay the right amount of tax and avoid getting in trouble with HMRC. Errors in tax payments are costly. An accountant keeps up to date with tax laws. They know how to legally reduce your tax bill and identify legitimate strategies such as changing the ways to draw income from your business, offsetting losses, using government incentives, and managing expenses and allowances.
- A good accountant will see that you have a stable cash flow to safeguard your business against risks to boost confidence among your stakeholders and investors.
- Bookkeeping is vital to managing your business finances. HMRC requires businesses to prepare financial reports. When you hire an accountant, these services are usually included in the package.
- As your business grows larger, the more you’ll be under various government regulations, and compliance with the various requirements takes time. You do not want your business exposed to mistakes and non-conformance. Your accountant can expertly handle these tasks.
- You’ll need funding if you want your business to grow bigger. Your accountant can prepare a robust financial case to present to banks, investors, lenders, and other potential stakeholders. If your business experiences sudden growth, your accountant will be your partner in managing cash flow, employees, taxes, and even finding new office space.
- HMRC conducts routine tax audits if your employees are paid through PAYE, and your company is VAT-registered. A tax audit is complex and stressful, and you can save yourself from the burden if you have a good accountant.
- Your accountant should be the first person to know your plans to buy a complementary business or competitor since mergers and acquisitions are the fastest way to enter a new market or grow your business. Your accountant can investigate the company you are interested in acquiring and analyse if buying the business will be to your advantage.
Know the specialisation of the accountant you want to hire. Discuss your needs and your goals for your business to ensure that you find the best one.