Do I Need an Accountant? How They Can Save You Money

Many people view paying an accountant as just another outgoing, another necessity that is paid begrudgingly along with utility bills, tax, business rates and the like. This perception is fundamentally wrong as so much of an accountant’s role in small business accounting is geared towards saving businesses money.

In most cases, a good accountant will save a business more than they charge in fees. If you don’t feel that this is the case, then it may be time to ask yourself: Do I Need An Accountant?

Managing business finances effectively is crucial for any business. This includes tasks such as bookkeeping, filing tax returns, and utilising accounting software. If you run a limited company, you have specific needs such as VAT registration thresholds and corporation tax obligations that an accountant can help manage.

Let’s look at the top 5 ways in which a good accountant can save you money:

Avoid penalties

This may seem obvious, but you shouldn’t underestimate the savings that can be made by appointing a professional to ensure that your tax forms are submitted correctly and on time. Penalties for late filing can quickly add up and the longer you wait, the more interest you will be charged.

A good accountant will ensure that penalties are something you will never have to worry about. They keep abreast of all the latest tax laws and deadlines, ensuring your submissions are flawless and punctual. This proactive approach not only saves you money but also provides peace of mind, allowing you to focus on your business without the looming fear of fines.

Tax advice

In addition to helping you to avoid penalties, your accountant should be able to advise you on the most tax-efficient setup for your business, as well as the most tax-efficient way for you to draw your own personal income from your company. They can also help improve your overall tax efficiency.

With an accountant’s expertise, they can identify opportunities for tax relief and deductions that you might not be aware of. Whether it’s navigating the complexities of VAT, understanding the benefits of different business structures, or making the most of allowances and incentives, a knowledgeable accountant is invaluable. Their tailored advice ensures that you’re not only compliant but also operating in the most financially advantageous manner.

Finding money

There is no one better suited to “finding” money than an accounting professional. By letting an accountant look after your books, they can clearly see where your money is going and therefore where costs can be saved. Plus, thanks to cloud accounting, it is now easy for your accountant to view this information in real-time.

This means they can offer timely advice on cash flow management, pinpointing unnecessary expenses and suggesting more efficient ways to allocate your resources. Their insights can lead to significant savings, effectively putting money back into your business that you might have otherwise overlooked.

Grow your business

Your accountant can share with you the unique business knowledge they possess. Accountants see businesses grow from small start-ups to well established, successful enterprises. In other words, they know the recipe for success, at least from a financial point of view, making them ideal advisors for your business. They can provide valuable advice to support your business goals. This includes strategic planning, financial forecasting, and risk management.

With their guidance, you can make informed decisions that propel your business forward, avoid common pitfalls, and seize opportunities for growth. Their experience with diverse industries also means they can offer sector-specific advice, giving you a competitive edge.

Free up your time

They say time is money, and this old saying rings true for most business owners. By appointing an accountant to worry about your books and keeping on top of tax deadlines, you’ll have more time to invest in client relationships and the work you know best. This delegation not only alleviates the stress of doing your own accounting, but also enhances productivity.

You can focus on innovation, customer service, and expanding your market reach while your accountant ensures that your financial matters are in expert hands. Ultimately, this leads to a more balanced workload, allowing you to achieve a better work-life balance and drive your business forward with renewed energy and focus.

An accountant or an accountancy firm can save you money by saving you time. Time to switch and hire an accountant today.

If you would like to discuss how an accountant may be able to save your business money, contact us today to book your free, no-obligation consultation.