In this business article, we cover the topic of when to take the plunge and invest in a financial or management accountant. The best business books recommend that you outsource technical areas in which you don’t have the expertise to allow you to focus on the competitive advantage of your business.
There are plenty of reasons why businesses outsource their financial requirements to an accountant, and accountants have proven to be of great help during the many different stages of a business’ growth and development. Truth be told, your accountant can be your best partner when it comes to your tax returns, but they can, more importantly, help you save money, create a sound business plan, and even assist you if you are being audited or investigated by HMRC. But what else can an accountant do for you? In other words, do you need one? Here’s how to determine if you need an accountant’s expertise for your business.
If you need to figure out your legal form
As you may well know, every business is different – and this goes for their legal structure as well. There are different kinds of business types, and these are decided based on several factors. Your business could be a limited company, for example, or it could be a limited liability corporation or partnership, a sole trader or proprietorship, and more.
Before you can decide on the best legal structure for your business, you need to consider what comes with each kind of structure. For instance, you can be classified as a sole proprietor or trader and work as a self-employed individual whilst doing your invoices under your name. If so, it may be possible to offset a few of your expenditures against your taxes.
If you opt to have a limited liability company, your business’ liability is only limited to your business’ assets and not your personal assets. A good accountant, such as GSM accountants in central London, can help you decide on the best legal structure for your business based on your needs and priorities, and these central London accountants can handle other financial matters as well.
If you need help with your finances
This is another apparent reason why you may need the expertise of an accountant. If you find yourself wasting hours and hours of your time just balancing your accounts and making sure your records are updated, it may be better to go for an accountant. Financial management is a complex matter.
If you would like to measure your metrics, like your total business revenue versus the salary you give to your employees, an accountant would be of great help. They can also manage your payroll and produce reports and graphs that allow you to see how your metrics change over a period.
If you are experiencing business growth
Businesses will not grow steadily – growth can be comprised of fits and starts, such as when you have a significant client or project and are suddenly required to expand. Your accountant can assist you with transitions and changes in your business, like hiring new employees and acquiring larger office premises. The best accounting books train accountants in how to spot symptoms of overtrading, cash flow shortages or overly leveraged business models and tack them back on track.
In addition, they can take care of your payroll, corporate taxes, manage your employees’ taxes, make payments on your behalf, and more, which gives you the freedom to pursue other tasks related to your business’ growth. They can provide information and explanations which will demystify how investments are taxed in the UK.
Accountants can be of prime assistance in other ways – if you are applying for a loan or being audited if you’d like to invest, and more. With their help and expertise, it’s entirely possible to move your business forward without any worries.