Monday, April 15, 2024

Running a Small Business? Here’s how an accounting firm can help you manage your finances

Own a business and don’t have an accountant yet? Here’s why hiring one will help improve your finances and growth. 

Professional accountants are needed in all businesses, small and large, to handle the accounting side. 

While it’s possible to handle the accounting yourself as an entrepreneur, once the business gets to a certain size, the financial strain and headaches of managing finances and filling out tax forms correctly, you will want to hire an accountant that specializes in financial management. 

There are so many benefits a good accountant can offer your business, from helping you plan for the future to risk management and providing smart ways to save money. 

Accountants are a vital cog in business growth because every decision in business has financial ramifications, which need calculating correctly for the business to thrive.

So if you’re still unsure as to whether your business needs an accountant, here’s a shortlist of what one can do for your business.

Assist in setting up your business

Setting up a business requires investors, drawing up solid plans, financial forecasting, setting up a legal structure for your business, and so on. 

It’s a lot to think about if you’re going it alone, and with the help of a trusty accountant, they can do all of this and more for you.

An accountant will write up a business plan for you to attract investors and give you a better chance of getting a loan from a bank, plus they will know how to best set up your company as a sole trader or limited company. 

Every business needs a solid foundation to work from, and hiring an accountant is the best way to provide it.

Help you pay the right amount of tax and save

Filling out tax forms is never easy, and filling it out wrong is even worse if HMRC finds out you have provided incorrect tax information. 

Luckily, an accountant from Lumbview Accounts knows how to fill them out properly to avoid costly mistakes and calculate your expenses and allowances to help you pay less. 

They know the ins and outs of tax law, and this information is invaluable for business owners when it comes to finding legitimate ways to save on taxes. 

Your business could save thousands of pounds per year on taxes with the help of an accountant just by identifying strategies that can save your business money from allowances to government incentives and investments.

Manage cash flow and bookkeeping

Reporting and bookkeeping are part and parcel of any business, and a legal requirement, so having a good accountant to do it for you – means one more task you don’t need to focus on.

Then there is the cash flow that needs attention to ensure your business stays afloat while you grow it, and this requires expert calculations. 

An accountant firm will help your business build a strong cash flow, which is a must when you have stakeholders and investors to keep happy.

Give business advice and manage business growth

Professional accountants come with a wealth of knowledge from working with other businesses and can provide invaluable advice from their years of experience in financial management. 

They can help with drawing up a functional plan for all your business ideas and warn you of any risks involved, as well as finding other ways to grow your vision into a reality. 

At some point, you may require additional funding for continuous growth, and an accountant will provide a strong case with all the documents and data to ensure your business gets the required funding from lenders and investors.

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