Why Is Having An Accountant So Important For SME’s?
Every month, over 200,000 small business open in the UK. Which means the need for an accountant is growing in demand at a similar rate.
When opening a new business, it can be very stressful and busy; however, when it comes to looking after your business accounts, it is not something that can be pushed back or done in a rush. This is why we are going to talk about why having an accountant is more important than ever.
Understanding Tax Codes
We know how difficult getting your head around tax codes can be, also considering the fact that as new rules and regulations evolve, it can be very time consuming to keep up with.
As qualified finance professionals, accountants will have their head wrapped around tax codes and making sure the right amount of tax is paid to avoid penalties or fines from the government.
If tax codes are done incorrectly, it is likely to cause issues for employees of the business, which may lead to employees leaving the business.
Paying For An Accountant Can Save You Money
You may be thinking; How can an accountant save me money?
Accountants for SME’s live and breath the rules of Tax. This means they have great ways to save money through tax credits and deductions. There’s a range of business expenses that you could actually be getting tax free! To find out more about allowable expenses, read our article here.
These saving graces could help you conserve a bit of a cash cushion to help nurture healthy cash flow in the current rocky economic climate.
Accountants Will Lead You In The Right Direction
Small and medium-sized businesses need strategic direction for growth. Accountants can help build a realistic plan of where you need to spend your money, how much money you can spend and how much money you can save in order to grow in the right direction.
This will prevent a common issue in newly opened businesses; over-employment. It is easy for a new business to hire more employees than they need, in case of sudden growth. However, this can actually prevent growth as the money could be invested in other areas.
Keeping In Line With Your Business Goals
In 2018 an enormous 90% of startups failed within the first two years because the businesses lost sight and track of their business goals. This is typically due to the owner being so busy with trying to get the business on its feet and not having time to take a step back to access the goals.
An accountant does not just handle tax related work. Hiring an accountant can help develop performance evaluations to get a company to understand where it’s standing and the direction it is going.
How Can We Help You At Stonehouse Accountants?
Hiring an accountant to work alongside your business is very important for business success, at Stonehouse, we help our clients to grow every year! If you would like some advice or help please, give us a call on 01733 265888.