An accountant is more than just a number cruncher. A good accountant can take care of your business’s cash flow projections, offer advice and insight, and steer your company towards growth. Here’s why your company needs one from day one.

Setting up a UK subsidiary

You trust your mechanic to keep your car in good running order. Your doctor keeps your health in check. And if you run your own business, you should be relying on your accountant to ensure nothing goes awry with your company’s finances.

When you’ve built your business from the ground up, you’re used to being hands-on and it’s hard to let go and have someone else take the reins. However, if you aspire to grow your business, it’s essential that you get experienced and expert help where it matters most.

How an accountant can help your business

1. Perfect your business plan

By involving an accountant in the early stages of your company, you can benefit from their experience and knowledge from the start. But even if your business has been running for a while, getting insight from an accountant can be key in helping take your business to the next level. Your accountant’s understanding of various software tools and how to use them for financial projections can give your company the edge it needs to succeed.

If you’re just getting started, our step-by-step guide to writing a business plan (with template) can help you get your business off the ground.

See also: Why the UK is still one of the best countries for business expansion

2. Manage cash flows

Managing your company’s tax and supplier invoices can be stressful and mistakes can be costly. Accountants analyse cash flow, inventory, collection and payment. You’ll receive valuable advice that is tailored to your business, helping you to reduce your spending and discover new ways to minimise tax liabilities – saving you money in the long run.

3. Improve your bottom line

Accountants offer an informed second opinion on expenditures that could be negatively affecting your bottom line.

By accelerating receivables and reconciling balances, you also get to tap into funds not previously accessible. Accountants can prepare a set of projections that look at how the business has been performing and help you make informed strategic decisions.

Budget forecasts, profit and loss statements, and actual versus budgeted performance will give you a good understanding of how your business has been performing and what strategic decisions you should be making.

4. Keep company records updated

Up-to-date and accurate financial records help you make better decisions about things such as product lines, pricing and inventory. If you’re looking to bring in investors or apply for a loan, keeping your records in tip-top shape is a must. A dedicated accountant can ensure that your records are managed correctly, and your books are in order.

5. Help securing a loan

Banks want assurance that they’ll get back the money they lend out. An accountant can ensure you have a sound business case for a loan, helping improve your chances of getting approval. They can easily provide the right facts and figures that back up your application and ensure you’re properly prepared should your bank ask any questions about projections and expenses.

6. Better tax planning

Taxes can be complicated and navigating the maze of regulation and compliance can be tricky. An accountant will advise on which ones apply to your business, help you stay on track to meet payment and filing deadlines, and they may even save you money.

See also: What the UK dividend tax rate increase means for your small business

7. Pay your employees on time

Paying your employees can be time-consuming and complex, but it’s highly important that it’s done on time. Accountants can help with preparing payroll based on your payroll cycle. They can also assist with the auto-enrolment pension contributions that are a compulsory requirement if you are an employer in the UK.

8. Help manage your company’s growth

Sudden growth can cause all kinds of problems relating to cash flow, tax or staff employment, to name just a few. It may even have a negative effect if not managed properly. An accountant can help you respond quickly and efficiently and turn unexpected growth into an opportunity that creates further growth.

9. Secretarial service for statutory compliance

Business owners are required to perform certain statutory filing obligations. An accountant can fulfil the role of a company secretary to ensure you are up to date with all your statutory filing obligations. This includes preparing and filing your Companies House annual return, fulfilling the role of registered office and notifying Companies House of any changes.

See also: 7 ways SMEs can be environmentally friendly and responsible

How to choose an accountant for your small business

As competitive as the accounting marketspace may be, there are ways you can ensure that you’ve entrusted a reputable accountant with your company’s finances. There are regulations and legislation that every accountant should be aware of and follow.

An experienced accountant who understands your business’ needs

Does your accountant specialise in only small-sized or only medium-sized businesses, or both? If your long-term goal is to grow your business, then you should consider partnering with an accounting firm that specialises in both. They will have the expertise and experience to guide and advise you as your business grows.

Suitably qualified

In addition to having the proper qualifications, your accountant should also be registered with an accounting body, such as the Institute of Chartered Accountants in England and Wales.

Added value services

An accountant who can provide a comprehensive range of services is great added value. Consider one who can advise you on the correct structure of your UK company, payroll and ensure you meet your statutory filing obligations. This will allow you to focus on growing your business while your accountant ensures all of your deadlines are met and that your books are 100% above board at all times.

Whether you’re in need of a bookkeeper to help you balance your books, or a management accountant who can help you make effective business decisions, we offer a variety of accounting services to suit your needs. Get in touch with our accountants on or give us a call on +44 (0) 20 7759 7553.

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