Businesses grow through several stages, and at every stage, there is a need to work with a professional who understands your business’s financial standing. Simple bookkeeping tasks for personal purposes may work well, but a growing business needs capable to keep it running.
A company’s finances, bookkeeping, and accounting are the backbone of it’s day-to-day activities, but it often gets overlooked. Bookkeeping refers to the tracking of your daily finance processes like sales, expenses, data entry, and reporting. Accounting points to the analysis and transformation of gathered data, from bookkeeping, into actionable information that can be used to improve the business’s financial position over time.
With an accountant, you can get a comprehensive overview of your financials as well as a plan to build your business. You can either hire an in-house or remote accountant to manage your finances. You can’t do it all, and below are the stages where hiring an accountant becomes inevitable.
1. Launching A Business
The best time to start working with an accountant is as early as possible in your business life. We say this because data collection and analysis can quickly become overwhelming as your business scales. Instead of learning with expensive mistakes, you can seek guidance with a qualified professional and start on the right foot. An accountant can assist you in planning the legal structure of your company. They also provide useful advice regarding the nature of your business and what your financial goals should be.
Accountants are great at an early stage because they take the hassle out of preparing the required license for your business registration. If you are interested, they can also set up suitable accounting software that makes tracking your finances easier.
Also, you won’t have to write your business plan alone with an accountant around. A qualified accountant can help you manage cash flow, develop accountability, set performance indicators, and secure funding. At the start of your business, accountants can help you find clarity and focus.
We offer businesses up to five free quotes from local accountants that are experienced with start-ups. You can fill our form to tell us more, and we will match you with experts that provide a much-needed structure for early-stage companies.
2. Doing Taxes
Tax accountants assist clients and businesses with their financial and income tax statements. Doing taxes can be a daunting tax, but not for an accountant who has been trained to interpret tax law. They also help you understand how recent changes in tax law could affect you and your business. Accountants review your books and identify where you can save on tax and any potential tax issues that may arise.
We recommend you treat this part of your business with the care it deserves, as tardiness can incur severe fines. The larger your organization is, the more you need a vigilant tax adviser to assess your financial operation.
Capital is necessary for smooth business operations; there are so many financing options you could try out depending on the type and niche of your business. This decision ranges from your traditional loans to equity financing. Without an accountant to guide you on the best path for your business, you might incur avoidable debt, and this can affect your business operations. The right accountant, who understands your industry, can recommend the best financing option for you based on experience.
Without proper cash flow, it becomes difficult to make investments in infrastructure, marketing, and product development. Accountants prevent this problem by balancing the long and short term benefits of different finance options and preparing you for the future.
4. Business Auditing
Auditing your business at the behest of the government or for other reasons is an accountant’s job. With an accountant, the auditing process is smoother and more subjective. You can also work with an auditor to examine your records, reports, and documentation and check your compliance.
Some licensed accountants or auditors can assist you with audit insurance, a plan that helps your business cover fees from any reviews or audits by the government.
FindUKAccountant lists certified accountants and auditors that check the validity of your accounting statements and offer advice to avert risk. What’s more, we match you with auditors and accountants in your vicinity to make the process more productive.
5. Advanced Analysis and Reporting
Handling your business analytics can get complicated sometimes, but accountants are experts at evaluating such processes. Optimizing the relationship between the revenue and expenditure of your business requires accounting experience and skill. The best thing you can do for your business is to delegate accounting to a qualified professional for better financial insight and analytics.
Your business data can be processed by an accountant for detailed reports and strategies aimed at improving the state of your finances. While you focus on growing your business, let your accountant examine your strength and weakness so you can scale faster.
There are many reasons why you may want to hire an accountant. When making both small and big decisions in business, an accountant is best positioned to guide you with detailed information about your business’ financial health. Entrusting your finances to a qualified accountant also ensures that there are no errors, and financial mistakes are quickly rectified.
Whatever stage your business is in, we are sure it could use a professional accountant to provide useful advice, better financing, and more in-depth analytics. Fill our quick form and tell us what you need to access our network of top accountants across the UK.
Disclaimer: We don’t take any responsibility for actions taken based on above information. Please speak to our consultants if you need more information. This guide was written specifically for FindUkAccountant clients. By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details are correct at time of writing.