When it comes to running the day-to-day affairs of your business, you are most likely an expert. You know what your business needs so it can operate smoothly and seamlessly, and you probably have a very good idea of the kinds of clients you need as well. But while operating a business is one thing, managing your finances is another. The management of your finances may well be a difficult task, especially if you aren’t a numbers professional. It then makes complete sense to rely on an accountant who can manage your financial affairs – not just payroll and financial reports, but also on business planning and taxes. But how else does the proper accountant benefit your business? Here’s your essential guide.
1. Settle the correct amount of taxes – and save on taxes
When you enlist an accountant to help you with your business, they can settle the correct amount of taxes for your enterprise – and, what’s more, they may even be able to help you save on your taxes. While you don’t want to pay a higher amount of tax than is necessary, you also don’t want to underpay – it will certainly give you an issue with HMRC. A proper accountant, therefore, can help compute your allowances and expenses in the proper way so you can avoid mistakes and save as well. Also, any good accountant will be an expert in the current tax laws and regulations, so they can help you decrease your tax expenses in a legal way. They can identify various strategies for tax efficiency, like using government incentives and allowances, and they can also offset your losses or change the way you receive your business income.
2. Improve your company’s cash flow
The management of your cash flow is, of course, vital, but it is often an aspect that many startups overlook. But your business can have some serious issues if you don’t have an allotment of ready funds. This is where a proper accountant such as accountants in central London from Griffin, Stone, Moscrop & Co come in because they can ensure that you have a strong cash flow so you are adequately protected against certain risks. With this, you can also increase the confidence of your stakeholders and investors – a win-win situation all the way.
3. Setting up and developing your business
Some businesses can fail just because they have not been able to effectively test their forecasts and figures. And when you create your business plan, you can rely on your accountant to help you prepare a more solid foundation for your business. They can provide you with their expert opinion and give you constructive advice in key areas like the appropriate business model. You can even seek help from your accountant regarding the best and most efficient legal structure you can have for your enterprise, be it a sole trader, a limited firm, or another structure altogether. Each of these structures will have various implications finance-wise, so it's best you know what structure will truly benefit you financially in the end.
4. Create financial reports and manage your bookkeeping
Of course, you may already know that your accountant can also provide you with bookkeeping services and financial reporting, especially since financial reporting is a legal obligation to HMRC. Your accountant can give you both services as a complete package.