If you run your own business, you understand the operations behind it (or at least I hope you do!). A bakery owner knows how to make a yummy cupcake and an electrician knows the cause and cure for a faulty wire. For a large number of business owners, financial management of their company is less intuitive and seemingly less urgent than their business specialism, which brings in that much-needed revenue.
This is where your handy number cruncher comes in: Your Accountant. Everyone knows that there are basic services that most businesses need from their Accountant but the real question is, are you taking full advantage of your accountant and their services?
Yes your accountant is there for practical needs, but you are missing an opportunity if you do not draw on their expertise to help you plan and improve your business. Accountants can be a real asset to any small business and using your accountant can even help you to move your business onwards and upwards!
So here are my five really important reasons why you should use your accountant more to help your business:
1. They can understand the complex tax system for you.
For so many of us the tax system is about as clear as mud. There are so many different types of tax, with regulations changing all the time, hundreds of forms that need to be filed and numerous scary deadlines for filing those documents. Your accountant can really help with making this process simple, especially if your accountant has specialist tax knowledge. It’s really important you talk to your accountant who can help you understand the ins and outs of the tax system well enough to avoid making costly mistakes. If you’re still not keen after speaking to them, you can always get them to do it for you!
2. They can ensure you have the right business structure.
Do you know if being a sole trade or a limited company is the best structure for you to have? With changes to the taxation of dividends coming in to force from April 2016, it may be a good time to ask your accountant to review how your business is set up. It is worth remembering that tax savings are not the only reasons for a using a certain business structure, you should also consider if being limited gives the perception of being bigger or more credible than you are.
3. They can help you save money and increase profits.
An accountant can create detailed reports that review the financial development of your business to date. These reports provide great insight by helping you to forecast and keep an eye on your profit and loss. In our experience, reports such as these will help you make the best decisions about the direction of your business and the way it needs to go to achieve more profit.
4. They can save you time.
Delegating your finance to a professional will save you loads of time so you can get on with earning money from your own specialism! It could be a waste of your time trying to figure everything out on your own when your accountant can swiftly do it for you.
5. They can provide you with a strong reputation.
At one time or another you may need to give information to financial institutions. A bank may take your proposals more seriously if your accounts and projections have been prepared by your accountant due to their credible financial qualifications and experience.
This is a very short list that I could expand on for even longer, but for me these are the key five points. Getting the most out of your accountant will make life easier so make sure you take full advantage of them!