5 Reasons why businesses need an accountant.
Many small business owners fail to realise that 80% of UK business will fail with the first 18 months of their creation. One of the big reasons this happens is due to poor financial management from the business owner.
Many business owners decide to manage their money alone. 53% of all small business owners don’t use an accountant at all, an even more shocking statistic is that 27% of these respondents will only use things like pen and paper to keep track of their finances
Many of these businesses shy away from letting an accountant give them the professional help that they need. Accountants can do more than just the basic tax filling that a lot of people think they are used for. Accountants can take comprehensive assessment of your finances and create a forecast through the year. Having this forecast in place well help keep your business healthy and running at maximum profit.
Here are some reasons why your business needs an accountant:
Get all your deductions
During a busy tax season a lot of small business owners are getting stressed thinking about how they can get the most out of their deductions. However, they end up taking too long and by the end of the year it’s too late to make a impact.
Have an account can support you throughout the year easily by identifying the potential deductions your business can do. They also can advise you on how to make the best decisions for year-end deductions
Avoid an audit.
Another really good reason to hire an accountant for your business to so avoid that dreaded audit. A good thing to remember is that an audit can easily be avoided if you have a trustworthy and reliable accountant all year-round.
Save time and energy
Many entrepreneurs think that have a small budget means they won’t be able to afford a trustworthy and reliable accountant. A good way to think about is to look how much time and effort you will spend trying to manage your finances yourself, this is without considering any mistakes you may make during the process the benefits clearly outweigh the cost.
A business owner should focus on running their business. Investing in a professional accountant will allow you to do that stress free.
Make real-time decisions
Business owners often wish they could calculate the potential consequences or the implications of investing into a bigger office or hiring new employees. Having an accountant can help you with improving your budgeting and monitoring cash flow.
Plan for the future
Finally, one of the biggest reasons of hiring an accountant is getting advice on how to plan for the future of your business. Working with an accountant you can pull reports from previous months and analyse the seasonality of your business. Doing this will make it easy to determine the best time to buy inventory or budget for big ticket investments.
As a small business owner, you will most likely be preoccupied with the day-to-day issues that occur. Having an accountant will allow them to take a step back and objectively look at your business as a whole.