Reasons to Use an Accountant
It's a sad fact that many businesses are struggling to survive in the current economic climate. Reports from late 2014 suggested that 55% of small and medium enterprises (SMEs) fail within the first five years.
With that unfortunate fact in mind, it's worth considering that balancing the books properly is incredibly important. That's why J G Middleton offers you a handful of reasons why you should use an accountant if you are a small business owner.
1. Tax Returns and Planning
It's often tough for most small business owners to stay on top of the everyday running of their business, long before they factor in taxes and report deadlines. All businesses can definitely do without being fined or penalised for missing a cut-off point for submission of a return.
With an accountant on hand, they will flag upcoming deadlines for this year and the next, so you never need to worry about missing a deadline. Furthermore, an accountant can advise on tax planning solutions and keep your tax return bills down to a minimum.
2. Monitoring Cash Flow and Savings
Especially during start-up phases, many small business owners sacrifice a wage and a lot of their own money to try and make the business succeed. However, paying yourself a small salary can be beneficial for personal well-being and the longer term success of the business.
An accountant can carry out book-keeping duties and checks on finances to make sure cash flow and savings are managed, accurate, and sustainable.
3. Encouraging Growth by Managing Your Books
It's vitally important to have your books in order if you wish to encourage investment and growth. And it's safe to say that we've already acknowledged that many business owners are incredibly busy on a day-to-day basis.
An accountant can keep track of your financial data, including profit and loss statements, bank statements, and balance sheets. Proper management along with expert advice can be invaluable if you want to take your business to the next level with an investor or a loan.
4. Preparing for Legal and Legislative Changes
The laws and legislation surrounding taxation and payroll are constantly changing. Over the last few years, for example, we have seen the new rules on workplace pensions come into effect, requiring many small business owners to help employees save for retirement.
An accountant is always up to date with the latest legal obligations and legislative changes, and they can help you to avoid any unpleasant surprises. They can put policies, procedures and software systems in place to ensure that your business is set up to automatically be compliant.
5. Providing Expert Financial Insight
Everybody has their own unique set of talents. Most small business owners are experts in their field of influence, but do not have the knowledge (or the time) to gain a fuller understanding about the financial condition of their business. For example, regularly checking the bank balance does not necessarily give an accurate view of trends within the business or potential areas of overspending.
With an accountant available, you can gain professional understanding of the state of your business, as well as access to financial data managed by accounting software. This kind of support can be helpful in decision making, whether it's keeping tighter purse-strings or preparing to expand.
If you have an questions about the financial running of your business, contact J G Middleton to discuss how we could provide help.