Does Your Accountant Understand Your Business?

By 22nd May 2018Start-ups
planning your business

Your Accountant Can Provide a Unique Perspective

Many people are choosing to become their own boss to avoid the career ladder completely. Running your own business requires expert financial advice – a good accountant becomes more than just a service provider to a small business, and should be an important strategic partner.

Whether you are setting up a new enterprise or have been in business for years, it is important to have a reliable accountant who knows and understands your business. If you assume that simply means having someone on hand to sort out the tax returns at the end of the year, you are failing to capitalise on a valuable strategic resource.

According to one team of accountants in Peterborough, who work with a growing number of SMEs in the area, an accountant brings more than just number crunching to a small business. They can also help the firm make better strategic decisions, reduce your tax exposure and mitigate some of the most business-critical finance risks, such as cash flow, capital financing and so on.

Knowing your business as well as your accounts

To deliver benefits, your accountant needs to understand your business. That means really understand it, not just have access to the financial books. Take time to sit down with him or her, talk through your short, medium and long term objectives, including you growth plans and any new product or service developments you might have in mind. The better your accountants know your organisation, the more they can help.

Helping you grow

Most small businesses try to get bigger. If growth is a major component of your strategy, your accountant will be able to support you in taking your business to the next level. They will offer suggestions in areas such as how to structure the business, as well as tips on avoiding common problems that a growing business might face, such as overtrading.

Managing evolution

Nothing stays the same for long, but as a new business grows and evolves, it can turn into a very different beast in a relatively short time. There are plenty of complications that can come with that change, and your accountant will be able to help you through many of them. For example, as your turnover approaches £80,000, you will need to register for VAT, and as the business matures, you might decide to bring in a business partner or perhaps become a limited company.

Raising finance

Every small business needs to raise capital from time to time, particularly when it is going through a period of growth. There are different ways of going about it, such as taking out a business loan, issuing share capital, increasing your bank overdraft and so on. Your accountant is going to be in a perfect position to help you decide on the best way forward.

Staying on top of taxation

Even the most business savvy entrepreneurs can glaze over a little when the t-word is uttered. Fortunately, your accountant will be on top of all the latest twists and turns in the tax regulations, and will be able to make sure your business is not only compliant, but also that it takes advantage of any applicable tax breaks that might be available.

Get the best from your accountant

Your accountant can provide valuable insights, whatever stage of development your company is at, and whatever challenges you might be facing. And the better they understand your business, the more valuable their advice is going to be.

Essex Careers

Author Essex Careers

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