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7th May 2021
89% of SMEs say their success was largely aided by the assistance of an accountant or business advisor. Could small business accounting help to grow your business?
Most people might think of an accountant as someone who steps in to help with a problem, but the best small business accountant is a long-term partner.
Small business accounting is an investment in your future – the information you gain will help to keep you focused on long term goals that can make your life better.
If you’d like to be happier and more effective, here’s how small business accounting can help.
As a business leader, your time is highly valuable. Yet how much is spent handling the books, overseeing financial compliance or just catching up in time for the end of the tax year?
Imagine your time is worth £100 per hour, and you use only 5 hours a month on your accounts. That’s a cost of £500 every month.
Look at this as a budget for your small business accounting. Then consider how much happier you’d be to know that someone you can trust is taking good care of your finances for you.
So many business owners lose out on family time or rest because they end up doing the books at the weekend. Using a good accountant acn save you this pressure and give you back that precious time.
Your job is to keep on top of your business and make it as successful as possible. Your small business accountant’s job is to keep on top of your finances and make it as robust as possible.
Finance is not your expertise. This means there’s a higher risk of mistakes or missed opportunities, all while taking the focus away from your real area of expertise.
Working to your own strengths and outsourcing your weaknesses will always be more effective for the long term health of your business.
Unfortunately accountants often have to go back and correct the books of a self-managed business, and of course this comes as a significant additional charge to any future assistance.
/We all know that even just the annual accounting deadline creates avoidable stress through the first quarter of the year – a time when we really should be laying the foundations for future success.
Upcoming changes such as digital only accounting come with more deadlines, and severe consequences for failing to meet the requirements.
But if you know that you won’t be surprised by a missed commitment, misunderstood regulation or an out-of-the-blue new ruling, your happiness is bound to increase.
Staying up to date with the constantly updating rules and deadlines for small business accounting is literally a full time job. Using a professional means you won’t miss something vital.
Unless you dedicate the time to record every detail, every day, it’s inevitable that you’ll miss expense deductions or other savings that could be made.
Without understanding the best way to process your tax commitments or draw-down opportunities, you’ll also run the risk of losing money (or even paying more than you should).
A small business accountant is 100% focused on getting the most effective performance from your revenue, which leads to the best possible profit margin.
A good accountant will assist you in choosing the best software solution to help keep you up to date, so that key information will be instantly available when needed.
Regular, repetitive tasks can easily be replaced with automated processes that free up your staff and improve their productivity – not to mention their overall happiness at work!
Small business accountants are well-versed in the solutions available, and can guide you through each step of implementation.
You have enough mental load already. Knowing that you won’t have to learn a new platform from scratch is guaranteed to bring a smile to your face.
The advances in accounting software can be transformational for a business, and so many tasks can be automated that even chasing your debt becomes easy and stress free.
The task of updating or upgrading your internal processes is demanding and, let’s be honest, boring. Especially if you’re doing it all on your own.
But the outsider’s perspective that a small business accountant can bring will help to reveal opportunities or risks. They’re also positioned to stay up to date on the available options.
The impact is hard to underestimate – improving processes and getting your business running smoothly will lead to more effective work.
When you spend too much on utilities, struggle to collect cash on time or require overtime to keep on top of expanding projects, there are real financial implications. Accountants have seen into so many different businesses and so benefit from a great overview of the solutions that can be used to streamline your business.
We don’t have to tell you that the life of a business owner is a busy one. This means that problems are often fixed after they’ve occurred, or changes are adapted to in retrospect.
With year-round support and regular contact, small business accounting can help you to avoid problems entirely and prepare for change in advance.
Your happiness is linked to your wellbeing, and your ability to see long term progress – so knowing you’re taking productive and proactive steps will have a huge positive impact.
Many small business accountants offer monthly packages that include regular meetings, and this contact time is a perfect resource to keep you focused and accountable to your goals.
Are you able to instantly assess and understand the consequences of deciding to take on staff, a new partner or invest in upgraded systems?
Unless you’ve kept on top of your bookkeeping, and have the relevant data to hand, you can’t know the full impact in advance. So your decisions have to wait, or rely on guesswork.
By working regularly with a small business accountant you’ll be in an enviable position of being equipped with everything you need to make more effective decisions.
When Covid-19 grants and loans were made available, live accounting data was required to be submitted with every application – those businesses who kept on top of their bookkeeping through software or assistance were able to apply much faster than those who weren’t up to date.
It’s hard enough to make sure that your marketing is in order, your sales are flowing and your staff are motivated.
But keeping up to date with regulatory changes or complex reorganisation (like Brexit) could be the straw that breaks the donkey’s back.
When you know that an expert is on hand and working to keep you prepared for changes in the future, you’ll sleep so much easier.
Changes happen all the time, for instance to VAT rules. A small business accountant is plugged in to the professional bodies that communicate these changes, and can always provide you with the latest data and developments.
Financial support can have a vitally beneficial impact on growth, but securing it can create a headache that you’d rather do without.
Just completing the forms or ensuring you fit the criteria can be challenging. Let alone identifying the best support available, as promotion is not wholly effective.
Accountants are more effective at securing finance – so there’s no worries about applying for unsuitable loans or meeting the requirements for financial grants.
Small business accountants have established relationships with loan and grant brokers, helping you to access funds that high street banks simply wouldn’t offer to you.
Starting or running a small business demands a specialist set of skills that have taken you to an established, settled position.
But growing and sustaining an organisation requires a whole other level of business intelligence, including financial knowledge. One of the primary causes of a business failing is poor financial management.
Working with a small business accountant is more than just purchasing a service. You will naturally acquire new and valuable insight that will only improve the confidence you have in both your business and your relationship with your accountant.
The best accountants are also well placed to serve as business advisors, able to share a wealth of experience with you to help guide your own business journey.
It’s easy to be drawn into the day to day demands of a business, making a strategic approach very difficult to maintain.
Your small business accounts offer a way to step back. Regular contact with an accountant supports your ability to keep a wide perspective on your business and what you’re trying to achieve.
Nothing will make you happier than being able to focus on the long term goals that will improve your life, and then measure the practical progress you are making towards achieving them.
A monthly catch up with our clients allows us to check in, share the mental load of everyday tasks and give them a different perspective – such as offering advice to avoid costly mistakes.
At RDG Accounting we provide expert business coach and mentoring services to a variety of businesses, from start-ups to sole traders or limited companies.
By analysing and understanding your current business model, processes and systems, we help to evolve the way you work so your business gives you the lifestyle you want.
A reliable, professional chartered certified accountant is essential to both managing and understanding the health of your business.
We can help with:
If you run a small business and would like to benefit from some one-to-one advice on becoming happier and more effective, please book a call.
Alternatively, if you’d like to get started sooner you can call us on 0333 200 0714.
have you read our previous post?