Running a business is ultra-competitive no matter what niche you work in. With ever-tightening margins and rising costs, it can be easy to see why many small business owners and start-ups opt for the DIY accounting route to save what can often be seen as “just another invoice to pay”. But hiring an accountant could save you money! In this blog post, we will run you through the top 5 ways an accountant can save you money and how they can help your business to thrive, not just survive!
Time Is Money
Let us be completely honest here, running any size of business is hard work and takes a lot of time and effort on your part to keep it running smoothly. With stock, sales, marketing, staff, customers and everything else to fit into your working day, can you find the time to do the company bookkeeping and accounts? We don’t just mean filling the invoices and receipts and checking the bank balance; are you doing the company accounts correctly?
An accountant gives you back the most crucial commodity of all – time! Time is money, and the time spent muddling through the company accounts could be better spent elsewhere in the business – or even more downtime for yourself!
No one likes a fine or a penalty, and with some HMRC penalties being up to 100% of the additional tax that has been owed or miscalculated – they can end up paralysing a business. Even an unintentional mistake made through “lack of reasonable care” could see you paying not only the tax owed but an additional 30% on top!
Avoiding late payment charges and penalties is just one way an accountant can save your business money by ensuring that your tax returns are filed correctly and on time.
They Help You Be More Tax-Efficient
Keeping up with tax legislation and allowances that can be applied is almost impossible unless you work in the industry, let alone try to do it whilst running a business simultaneously! Good accountants live and breathe taxes and money, so they keep their fingers on the pulse to know what allowances are available and ensure that you make the most of them.
Tax efficiencies are not just saving on the tax bill but also making sure that you are paying the correct taxes at the right time, which is also vitally important.
They Can Assist in Gaining Funding
A good accountant will also be versed in the practices needed to secure investment, such as:
- Cash-flow predictions and reporting
- Profit & loss statements
- Yield reports
- Pitch decks
Accounting is more than just taxes and spreadsheets! From creating accurate reports to forecasting, an accountant is your best friend when raising finance for your business. They know exactly what investors and creditors are looking for and how to present the data to them.
Invaluable Business Advice
From investments to cost-cutting, a good accountant is invaluable for their advice in running a profitable business. As an outsider, they can also help you see the business as it is financially and offer impartial advice. You can even get industry specialist accountants that focus on things such as Contractor Accounting or Umbrella services if this is what your business model is.
Not All Accountants Are Created Equal
As we have alluded to in another of our blog posts, not all accountants are created equal, so making sure you have a proactive and not a reactive accountant is critical. An armchair accountant will probably not save you much money and could cost your business. But a good accountant will not only take the time to get to know your business – but will help it to grow!
Want to know more about how an accountant can save money for your business, or perhaps you are looking for an accountant for your business? Then reach out to the RJF Accounting team today! We provide specialist accounting services that can be tailored to your needs, from bookkeeping to investor relations and more!