What can an accountant do for your business and what are the advantages?

  • They have continuously studies and obtained qualification in accountancy
  • Abide by ethics given by accounting body and they are kept up to date with changes in the profession such as accounting standards
  • They are continually monitored to ensure they are professional
  • Regular checks are done by the professional accounting body

So can an accountant help you and your business?  We take a look at the areas of business an accountant gets involved in.

Start up business advice

Before you decide to start up your own business, it is highly recommended that you speak to an accountant.  As well as advising on a range of issues such as tax and legal they can advise whether the business needs to be set up as a sole trader, partnership or even a limited liability partnership.

Raise of finance

Thinking about expanding your business?  Turn to an accountant first who will advise particularly if you are looking to buy equipment whether to purchase outright or lease.  An accountant will look at the range of finance options available including overdraft, financing, or loan.

The Management of your business

An independent qualified accountant can provide an impartial look of your business.  If you are a sole trader this can be of great help.  An accountant can help turn your ideas into reality and provide budgeting, forecasting and cash flow analysis.  They can also put controls in place to monitor performance and aid day to day activities.

Provide and manage finances and tax

Maintaining a good set of accounts is vital to the financial health of your company.  There are accountancy software packages available to purchase but there is so much more that an accountant can offer you without the need to purchase expensive software packages.

Examples are detailed below:

  • Put together your VAT returns
  • Prepare statutory accounts for year end and make calculations as to how much tax is owed to the tax man
  • Provide advice to ensure you make full use of your tax allowances when processing expenses
  • On your behalf, handle all queries from HM Revenue & Customs

Assist with merger plans

If your business grows, this is not always a good thing.  Because if it is unexpected, additional funds are required to pay for the additional demand.  An accountant can advise on valuing your business if you decide on buying or merging another business.

Audit Schedules

Audits are very important and not something that can be avoided.  These are usually carried out annually and are carried out by an external auditing team.  They will look at all the controls that are in place and find errors and flaws to the control.

If any of the two criteria given below apply to your business you will be subject to an annual audit:

  • An annual turnover of more than £6.5m
  • A balance sheet totalling more than £3.26m
  • 50 or more employees

If none of the criteria applies to your business, then no audit is necessary.