COVID-19 has completely altered the meaning of operational and financial flexibility for businesses. In this ever-changing environment, business owners must keep a close eye on their cash flow and find innovative ways to operate.
We understand how challenging these times can be, and want to explain the role of an accountant and when it is beneficial to hire one to help your business grow. Having an accountant on your side can be a great asset, as they can help reduce the huge burden that many businesses face.
Does a business need to have an accountant?
If you own a business, regardless of the size or industry, accounting, tax, payroll, and bookkeeping tasks can be a significant load. As your business grows, these tasks often become more complex, taking up ever more of your time. When this happens, it may be a good idea to hire an accountant to lighten your load.
Self-employed individuals and sole traders can also take advantage of tax return and tax planning advice. Therefore, it is beneficial for owners of all types of businesses to seek out an accountant for assistance.
How an accountant adds value
An accountant can provide invaluable guidance and advice on the financial aspects of a company, as well as helping identify areas of waste and inefficiency. They can also provide advice on tax strategies and succession planning. Ultimately, an accountant can be a vital resource for any business.
If your organisation can benefit from support in the following areas, then it’s worth considering getting an accountant’s help.
Bookkeeping
If you’d rather handle your own bookkeeping, an accountant can assist you in creating and executing a reliable record keeping system. Many accountants offer bookkeeping services, but having an accountant develop and put into action a system that works for you and your business is an invaluable asset.
Cash flow management
Maintaining a healthy cash flow is essential for the survival of any business, especially during times of instability. An accountant can help you plan and manage your cash flow over the next 12 months, enabling you to make the necessary adjustments to your costs or pricing in order to make sure you have sufficient funds.
Budget smartly
An accountant can be integral in helping you develop a budget that is realistic and attainable, as they possess the expertise, insight into the market, and an understanding of your particular business. This budget will be designed to accurately reflect costs and revenue goals, while making sure that you are properly managing your debts.
Business strategy and planning
A comprehensive business plan crafted with the help of an accountant can help you secure necessary financing and reach your financial and business objectives. An accountant adds value by ensuring the assumptions in the business plan are realistic and can even lend their expertise in composing and presenting loan applications to the bank or other investors.
Guide business succession planning
Your accountant is an invaluable asset when it comes to creating a cost-efficient exit plan for your business. From business valuation to tax minimisation strategies, due diligence and estate planning, they will be able to provide expert advice to help you decide the best option for you – whether it’s to sell the business, retire as a silent partner or pass it to your children.
A great business advisory and accountancy firm will have the flexibility to meet the needs of businesses of all sizes, so that as its clients grow, they can access more extensive assistance without having to switch to a different firm.
So don’t be afraid to have either a relatively modest or a truly ambitious checklist of needs. It’s your best way of getting the exact level of service you need.
Accountant vs bookkeeper: what do they do for a business
An accountant and a bookkeeper are both professionals that deal with the financial side of running a business. They both work with your financial records to ensure accuracy and compliance with laws and regulations. However, their roles are quite different.
A bookkeeper is responsible for keeping all the day-to-day financial records of a business, including invoices, payments, receipts and bank statements. They also prepare financial reports, such as profit and loss statements, and balance sheets. Bookkeepers can also help businesses set up and maintain their financial systems.
An accountant, on the other hand, is a professional who provides advice and analysis on a business’s financial records. They analyse the data and make recommendations to help the business make decisions. Accountants can also handle tax filing, payroll and other financial tasks.
Small business owners often turn to both an accountant and a bookkeeper for assistance. An accountant can provide guidance and advice while a bookkeeper can handle the record keeping tasks. Hiring professionals that offer both bookkeeping and accounting services is a great way to ensure accuracy and efficiency.
How much should accounting cost a business
Accounting is one of the most important aspects of operating a business, and it is essential to ensuring the success of any business. When it comes to how much accounting should cost a business, there is no one-size-fits-all answer.
When selecting an accounting firm, it is important to compare fees and services offered, and to make sure to choose an experienced and reliable firm. Ultimately, the cost of accounting for a business should reflect the value the accounting services provide. By taking the time to find the right accounting firm and investing in quality accounting services, businesses can ensure that their finances are well managed, and that they are making the most of their resources.
We’re here to save you time and energy so you can focus on building a profitable business in the post-COVID environment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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