Running a small business can be exciting as it allows you to be your own boss and pursue your passions. But that excitement can quickly disappear as you face small business responsibilities such as managing daily operations, handling staff, marketing, sales, etc. While all of these occupy your time, you might struggle to consistently monitor your business’s financial health, which could have serious consequences. To avoid this situation, partnering with an accounting firm for small businesses can be a game changer. An accounting firm offers a plethora of benefits beyond crunching numbers. This blog will explore the benefits of hiring an accounting firm that will help you to propel your small business forward.
1. Streamline your financials
Keeping organised and accurate financial records is essential for any small business. According to a Dext research report, over 40% of small businesses spend considerable time completing their bookkeeping tasks manually. However, for any business owner, this task can be repetitive, time-consuming, and more prone to errors if done manually.
Hiring an established accounting firm can be the best solution in this scenario. An experienced accountant will handle your accounting functions; they will advise upon and help you to set up a comprehensive accounting system to track your income and expenses and record all transactions, streamlining your financial operations.
2. Choosing the proper business structure
Selecting the proper business structure, such as a sole trader, partnership, or limited company, has an impact on your business’s legal and tax implications. Hiring an accounting firm will help you understand the pros and cons of each structure by considering your financial goals and plans.
A seasoned accountant will help you choose the correct company setup and ownership structure, which will be tax-efficient for your business. Also, you will get assistance in your business registration and filing necessary documents with Companies House by complying with all legal requirements.
3. Enhanced tax efficiency
Taxes are an inevitable part of running a small business. As a business owner, you might find navigating the intricacies of the UK’s tax landscape challenging. A single mistake in tax filing might lead HMRC to penalise you or conduct a tax investigation process. You don’t want to face this situation.
An experienced accountant will help you file your taxes accurately and on time so you don’t have to pay late filing fees or any penalty. Also they will assist you in maximising all tax benefits and claim all possible deductions your business is entitled to. Accountants always stay ahead of the tax law changes, enabling them to identify new opportunities to reduce their tax liability.
4. Improved cash flow
Cash flow is a business’s lifeline, essential to maintaining day-to-day operations. You must recognise it and put steps in place to make sure it improves with time. Hiring an experienced accountant will help you analyse financial data and identify areas to improve cash flows.
Accounting firms also assist in creating budgets, forecasting future expenses, and spotting areas where you can optimise spending. Hence, your accountant will provide strategies for enhanced cash flow, help you make informed decisions regarding future investments, and maintain financial stability.
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5. Cost efficiency
As a small business owner, it is evident that you will be thinking of ways to reduce the cost of your business operations. While the initial investment for hiring a reputable accountant might seem an added expense, it will prove you a cost-efficient investment in the future. Wondering how?
A seasoned accountant will streamline your accounting processes, minimise financial errors, and identify tax breaks, improving your company’s bottom line. Compared to maintaining an in-house team of accountants, outsourcing will cost you 50% cheaper than the former. Also, you will have access to robust accounting software solutions while outsourcing your accounting services.
6. Liaising with HMRC
Dealing with HMRC can be a daunting and time-consuming process. As a small business owner, the last thing you want is to deal with HMRC. HMRC can send you a nudge letter or request a tax investigation for your business, which can be very worrying. It becomes difficult for a business owner to handle business operations and liaise with HMRC simultaneously as the process is tedious, complex and stressful.
In this scenario, an accounting firm can be your saviour. Experienced accountants act as intermediaries while resolving disputes with HMRC, filing tax returns, and ensuring compliance with regulations. Thus, you can minimise the risk of HMRC penalties and remain stress-free.
7. Strategic business advice
Business growth is not always a linear journey. Securing a new project or landing a new client can often accelerate your expansion plans. An accountant can become a significant help during this growth phase, providing you with strategic advice on property taxes, payroll, utility bills, employee tax obligations, and more. This guidance empowers you to focus on the broader vision of your business, confident in the knowledge that your financial strategies are sound.
Moreover, accountants guide you in pricing, inventory management, and cash flow strategies. Their financial analysis offers valuable insight for scaling up your business, including the optimal timing for launching a new product or service.
8. More time to focus on business
Startup owners often find themselves overwhelmed with the multitude of business processes, both core and non-core. The complexity of accounting and taxes can further add to this burden, leading to potential mistakes that could impact your business. However, with a dedicated accounting professional, you can liberate yourself from these financial worries and focus on what truly matters for your business.
Accountants will take care of your finances while providing you with advice for your business growth. Hence, you can give more time to your core business activities. It allows you to enhance customer service and product development, build customer relationships, and curate marketing activities and sales promotions that drive business growth.
Final thoughts
Collaborating with an established accounting firm for a small business can significantly enhance your entrepreneurial journey. This partnership enables you to make strategic decisions, optimise financial management, adeptly handle complexities of tax regulations, and boost your cash flow. You free up time and gain expertise on your successful business growth by delegating these crucial tasks.
Are you ready to get started? Look for an accounting form for a small business with expertise in your industrial sector and a proven track record. Explore their services, ask relevant questions, compare the prices, and choose the form that meets your unique needs and budget. We at Bradley’s Accountants offer tailored accounting solutions to small businesses while catering to their needs. We act as a trusted partner to our small business clients and help them to grow their businesses. Book a free consultation with us today and witness how your business reaches the next level.
