06 Nov
Key to Business Success
The Keys to a Successful Business
When you own a business, it is tempting to do all the tasks yourself both to save money and to give yourself the sense that you have oversight over everything. However, this can be a big mistake and can leave you drowning in inaccurate bookkeeping and restrict you from getting the most out of your business. That’s why an accountant is a major key to business success. This blog looks at one of the key reasons that a good accountant can be a major key to a successful business. We take you through why investing in a UK accountant is a sound business choice and how a good Accounting firm can take your business to the next level of success.
“Behind every good business is a great accountant”
Good Accountants can be The Key to Your Business Success
First off, to give you an idea of how an accountant can help save you time and give your business a boost let’s look at what an accountant does. Depending on what your business does you can use an accountant in different ways, however, the key job of an accountant is to manage money and to ensure this is done in the best possible way.
Various UK accountants, Accountants in London and London accountancy firms will have different specialisms, so you can select them according to your need. It is even possible to have an online accountant if your work is remote and getting into the city is tricky.
In general, accountants specialise in the following areas:
- Tax: Tax can be complicated. Fortunately, there are numerous UK tax accountants that specialise in sorting out your tax forms for you. Give your brain a rest and let them take over your tax worries away.
- Forecasting: Specialist management accountants can work on projections, budgets, and forecasting to ensure that your business can undertake effective planning for the future and come up with achievable goals.
- Financial management: Keeping accurate records, preparing statements for shareholders, and analysing progress to provide appropriate financial actions for your business are all tasks that an accountant can assist your business with.
They Can Save You Time
Another reason why accountants are key to business success is that they save you time, something more valuable than money. Looking after the books yourself can be incredibly time-consuming and can lead to working hours that are well over the normal working week. What’s more, it’s unlikely that you have the expertise to do it properly so the potential for mistakes and miscalculations is high. Doing your accounts, yourself can be complex and there can be hurdles that you come up against that you do not have the financial expertise to handle. With an accountant on board, you can not only give yourself a break, but it can also help to prevent time-consuming mistakes that need to be rectified. (Financial Times confirms how 2018 saw a record rise in bad debt at Listed Companies)
Accountants Saving You Money is Another Key to Business Success
One of the biggest nightmares of any company is tax. With a complicated tax system, it can be easy to miss deadlines, miscalculate your tax bill and fill out your tax documentation incorrectly. All the above can incur heavy fines and many businesses fall down this trap, losing much-needed money. This could all be avoided with a personal tax accountant on board.
Having your own personal tax accountant for your business will go a long way to save you both time and potentially money. They can keep your books in order, sort out your tax bill and help you to identify tax relief opportunities. Many businesses miss out on costs which can be claimed as expenses against your tax bill, a chartered accountant can help you to identify these and potentially reduce that dreaded tax bill releasing money for other business opportunities. Being on the right side of HMRC can be considered a major key to business success.
Tax accountants aren’t there to only help businesses. If you are self-employed or have a complicated tax arrangement it can be a wise choice to make use of an accountant to look after your affairs. They will be responsible for helping you fill out your tax return, ensuring you are making the most of any tax relief and to get all of this done to meet HMRC deadlines. With them on board, you can rest assured that your tax return is filed correctly and that you can avoid any fines for late or incorrect submissions.
Another innovative way a local accountant can help your business is by making sure that your invoicing system is efficient and effective. Many businesses struggle with cash-flow issues as invoices aren’t paid on time, or they don’t have the capacity to chase unpaid bills. Experienced and tech-savvy accountants can help set up an invoicing system which automates the process, so the monitoring is done for you and payments can be received in a variety of ways.
An Accountant can Improve Your Growth and Become the Driver for Business Success
Financial planning is the backbone of any successful business, and we’re sure you’ve all heard the stats about the number of businesses that fail in their first year. This can be due to failure to draw up accurate projections, poor business plans and a lack of record-keeping. Don’t let this be you. Take all the important steps of finding and communicating with experienced accountants near your location.
In the UK, accountants not only help businesses with bookkeeping and tax bills, but they can also be a core player in developing your business. A UK accountant brings financial expertise to your business planning. Let’s explore how an experienced online accountant can improve your growth in more detail.
- 360-Degree Financial View of Your Business
With a team of accountants onboard, you will have someone with complete oversight of the finances of your business. As an individual business owner, this can be a hard thing to do, and it can be easy to get lost in the numbers. With a 360-degree view of your finances, and with up to date financial information, an accountant will be able to give well-informed advice on financial decisions, planning and opportunities for growth, this can be key to business success.
- Your Cash Flow will be in Good Shape
One of the keys to a successful business is healthy cash flow. This can be overlooked in business, and when it falls short it can be disastrous. Proactive accountants will provide excellent cash flow solutions for your business and put steps in place to ensure you don’t run into cash flow problems. From having an overhaul of your expenses to sorting out your credit control system, an accountant can get your processes into good shape and make those cash flow issues a thing of the past.
- KPIs can be put in place
Business Intelligence savvy firm of accountants in London will be able to identify what is working in your business, and what brings in the most profits. In this way, an accountant can be pivotal in developing key performance indicators (KPIs) for your business to enable you to make realistic and smart decisions for the future of the company.
- Identify funding opportunities
Access to funding can be key to business success. Being linked with a team of accountants can open a world of opportunity for your business. They will know about potential investment decisions that could be of interest to you or have knowledge about short-term business loans and funding grants that could be available to your business. With expert financial advice from them, you can be confident that potential funding opportunities will be identified that could lead to the future growth of your business.
- Contribute to business planning
Investing in an accountant can have some excellent positive effects on your business planning and development. With their financial expertise, they can identify growth solutions such as identifying new markets for your business, benchmarking against competitors and helping you to effectively budget and forecast for the future. Skilled accountants in London can bring a breadth of knowledge to your company, as well as a fresh vision of stagnant business plans.
- Gives you more time
Time is one of the major keys to a successful business. Inevitably, when the bookkeeping and accounts are taken care off, you will have more free time. As a business owner, the workload can sometimes be overwhelming, and by just keeping things afloat you can often miss out on identifying areas for growth and developing your business. With time on your side, you can take the time to reflect on what’s working and what’s not in your business, as well as be able to put your skills to the best use in developing your business ideas.
- Support through business changes
If you are planning any changes in your business, such as a restructuring of the company, a merger or potential expansion, having the expertise of a team of London accountants on your side is essential to ensure that these decisions are financially viable. They can support you by advising on any changes in financial structures that go along with a potential change in the running of your business.
Top 10 Reasons Accountants are One of the Keys to a Successful Business
To summarise, here are the top 10 reasons why investing in an accountant is a sound business decision:
- Tax relief – tax-saving opportunities will be identified, and it is highly likely your tax bill will be reduced.
- Taxes filed correctly – an accountant will be able to work out your taxes accurately so no need to worry about incorrect calculations that could result in a fine.
- Tax deadlines will be met – fear of missing the tax deadline can become a thing of the past – an accountant will have that all underhand, so you don’t incur any unnecessary fines.
- Books in order – your books will be in order, data correctly entered, and documentation filed where it needs to be, no need to waste time on mistakes made from negligence or lack of capacity.
- Effective systems in place – an accountant can make sure systems for invoicing and expenses are efficient and easy to manage to save you time and ensure payments both in and out are effectively monitored.
- Healthy cash flow – with a financial expert on board steps will be put in place to make sure your cash flow is kept in a healthy state, ensuring your business avoids difficult monetary situations.
- Financial expertise – an accountant doesn’t just keep the books in order and sort out the taxes, they can also bring sound financial advice to the table and input this into business planning and decisions.
- Identify areas for growth – by having a complete view of the business and how it is doing financially your accountant can identify areas that are working well and could be developed further.
- Identify funding opportunities – with contacts and experience an accountant can help identify potential funding opportunities for your business.
- Gives you more time – perhaps most importantly, with an accountant on board you are free to do what you do best and make sure your skills are put to optimum use in supporting and developing your business.
General FAQ’s
How do Accountants charge?
Accountants are of different types, some have built their internal processes which require them to charge an hourly fee, while others have built fixed fee or monthly billing packages. Who you go with depends on your needs, however, do keep in mind that hourly billing can get quite expensive and needs to be kept an eye on.
What is a qualified Accountant?
Qualified Accountants are members of professional bodies in the UK which have been granted the queen’s charter to practice. The members have to go through extensive exams and practical experience to become eligible voting members.
What is ACCA or ICAEW?
ACCA stands for Association of Chartered Certified Accountants and ICAEW stands for Institute of Chartered Accountants in Englands and Wales. These are both professional bodies in the UK which have been given a charter by the queen which allows their members to practice under their strict guidelines.
Key things to look for before hiring an Accountant
The key things to look out for are as follows:
1- They should be good with technology
2- They should have customisable price packages
3- They should be qualified
4- They should have a strong partner network
5- They should be able to help you grow through their business advisory and tax planning services.
Author Bio
Anam has a degree in accounting from the Prestigious St John’s University, and works as a senior director in Clear House.
Before working in Clear House, Anam worked in various commercial roles, the last one being the VP Operations for a prestigious business organisation,working on improving the organisation’s operational efficiency, growth and high level client management.
Anam manages clients ranging from software companies to large property developers and managers. Notably, she recently worked with a large property development company building large scale developments in London and the surrounding area.