Accounting is a necessity when running a business. There are many benefits of hiring an accountant for small and medium sized businesses. Having an accountant can be a crucial factor in the success of your business and hiring an accountant is something all small and medium sized businesses should at least consider. This blog will detail the most valuable reasons as to why you should hire an accountant for your small or medium sized business.
How can an accountant help my business?
Hiring an accountant can save you time and money
Many small businesses believe that hiring an accountant is too expensive, especially if they are looking for ways to save money. However, this is most often incorrect. For instance, if it took you 12 hours to complete your taxes yourself and you would pay yourself £50 per hour, then that would be £600. However, if you are not a qualified accountant it is likely that you will have made some mistakes. If instead you hired an accountant to do such a task for you then they will most likely be able to complete the task quicker and without any errors. Additionally, you will have more time to focus on your core business needs which can result in more revenue. Taking all of this into consideration it usually is in fact cheaper for small and medium sized businesses to outsource and hire an accountant.
Hiring an accountant will help your business finances
Even small and medium sized business accounting can easily become complicated if you do it on your own. If you feel like you are losing track of who owes you money and how much, hiring an accountant can solve this. An accountant will help you to monitor your business’s finances and keep a close eye on important aspects, such as cash flow.
Additionally, if you find an accountant who uses cloud accounting (such as Xero Accounting Software) then you will be able to see your business accounts anywhere and anytime if you have an internet connection. Accountants can also create charts and tables which will easily give you a good understanding of your business’s current financial situation.
Hiring an accountant will help you keep on top of government regulations and paperwork
When you start your own business, it can be confusing to know all the government regulations and paperwork required from you. This is why a lot of small and medium businesses hire an accountant when their first tax return is due.
An accountant can help you with many other aspects concerning government regulations and paperwork.
If you hire an accountant for your business they will be able to:
Ensure your business is up to date with current tax laws
Prepare annual accounts
Prepare management accounts
Manage your payroll and make sure that all payments and employee tax codes are correctly recorded
Complete and file the necessary legal and compliance documents for your company
Hiring an accountant can help you with funding for business growth
If you decide that you want further funding (for example taking out a loan from a bank) in order to expand your business an accountant can help with this. In order to obtain funding from a bank, lenders/investors need to know funding will be put to a good use. If your business has hired an accountant they will be able to give precise cash flow forecasts as well as trustworthy financial planning and strategy which will increase your probability of receiving funding.
How do I find the best accountant?
If you have decided to hire an accountant, it is important that you hire a reliable and qualified accountant. When you are looking for an accountant make sure you choose an accountant that is regulated by a professional body or recognised by the government, such as Chartered Management Accountants. Chartered Management Accountants are highly qualified accountants who have achieved more than degree level study in addition to experience in the workplace and a professional competence programme. By choosing a qualified accountant you can relax knowing that your business is in safe hands.
Traynor Accounting can help your small or medium sized business
Traynor Accounting Cumbernauld and Glasgow provides accountancy services for small and medium sized businesses throughout Scotland and the UK. Whether you are a small sole trader business, or sole director contractors, or even a medium sized limited company, Traynor Accounting can help.
All our accounting services are completed by our Chartered Management Accountants and experienced bookkeeping team. Additionally, Traynor Accounting Cumbernauld and Glasgow are certified in Xero Accounting Software, having gained both Xero Champion and Xero Silver Partner status.
To find out more about our accounting services give us a call today on 01236 222668 for your free accountant consultation (no obligation!).