Should You Appoint a Business Accountant?

If you’re a relatively new business owner, you might want to take care of everything yourself, including your business accounting. After all, having full control and autonomy is a key reason why many people make the leap into self-employment.

But the picture can quickly change! As your business ramps up you’ll come under increased time pressure and the complexity of your financial management, accounting and reporting obligations will scale up too. This is especially the case if you incorporate your business due to the increased regulation and accounting obligations limited companies face compared with personal ownership.

But small business accounting isn’t something you need to struggle with – the benefits of engaging a good accountant are wide ranging and in this post we examine how their accountancy services can help you.

A Business Accountant Can Help You Grow

Before you even start running a business, an accountant can help you by advising on the best structure for your company based on your unique circumstances and goals. In most cases you would operate through a limited company or personal ownership as a sole trader and they will be able to assist with company registration or incorporation.

Once you’ve started trading, the initial focus is on getting your company off the ground and sustained growth, and this is something a business accountant can also play a huge part in.

They will provide ongoing insight into the financial health of your company, where you can cut costs and how to minimise your tax liability while remaining compliant which all equates to more retained earnings and this capital can be reinvested into the business, perhaps to purchase better equipment or to be invested into marketing activities to help win more work.

You Receive Accounting Software

When you appoint a business accountant you’ll usually receive access to accounting software. If you’ve been doing your accounting and tax returns on paper or using spreadsheets, accounting software is a gamechanger with multiple benefits for your business.

All Gorilla Accounting clients receive full access to FreeAgent free of charge inclusive in our great value accountancy packages. FreeAgent is award-winning cloud-based accounting software that is trusted by over 100,000 contractors, freelancers and small business owners.

With a wealth of features and comprehensive automation, FreeAgent will make accounting a breeze. FreeAgent allows you to easily manage your business on the go. You also have everything stored digitally in one place, meaning you don’t have to sift through piles of paperwork to find an invoice or receipt.

You can update your financial information in real time, such as logging expenses, which makes life much easier when it’s time to submit your tax returns. Automated bank feeds are easy to set up and enable your transactions to be categorised which means your finances stay organised.

Branded invoices can be easily created and sent to your clients. Unpaid invoice reminders can be configured and you can chase payments automatically which is helpful for your cash flow. Your tax returns are also automatically calculated in the background while you work and get a real-time overview of the financial health of your business thanks to a configurable dashboard and various inbuilt reports.

Meet Your Tax Obligations

Whether you operate through a limited company or as a sole trader, working with a business accountant will take the heat off when it comes to our tax obligations. They will develop an overarching tax strategy which includes optimising tax-efficiency.

They will ensure best practice is implemented in terms of record keeping which is a crucial basis for effective and efficient tax reporting and prior preparation is done and you don’t need to worry about compliance as a business accountant will ensure that your returns are submitted correctly and on-time.

By working with a business accountant you get peace of mind that your self-assessment tax return is in hand as well as your VAT returns and capital gains tax obligations meaning you can focus more of your time on running and growing your business.

Effective Financial Management

Effective financial management is the foundation for any successful business, be it a startup or an established company. As well as helping to keep your records organised, a business accountant can help with financial analysis. This includes providing and analysing up-to-date financial statements including cash flow and balance sheets to ensure that you have a clear picture of the current financial health of your business. This ensures that you can base any financial decisions, such as raising rates, on accurate and current data.

They can also assist with forecasting and budgeting. This can include plans for long term growth as well as planning for future expenses, revenue and cash flow. This plays a crucial role in helping to ensure your business operates within its financial means as well as helping to scale operations. Cash flow will also be managed so that your business has enough funds to cover its expenses.

Retain More of Your Earnings

There is of course a monthly fee for the services of a business accountant, but the benefits far outweigh the cost. An accountant will help you to maximise your tax-efficiency which can result in more take home pay.

Tax legislation is a complex matter and if you’re handling your own accounting and tax affairs, it’s likely that you’ll be paying more tax than you need to. A business accountant will advise you on how to optimise your tax position if you operate through a limited company, including structuring your remuneration between a combination of dividends and salary, to reduce your tax liability whilst remaining compliant.

They will also advise on how to claim all eligible reliefs and deductions, including your allowable expenses, which again will all help you to pay less tax. They can also help boost net profit by advising on how to cut unnecessary costs.

Find The Right Work/Life Balance

Being self-employed gives you control over the hours you work meaning you can strike the work/life balance that’s right for you. Being your own boss should be all about controlling your schedule and working hours and days that suit you.

But as a business owner you also have the responsibility of handling your own accounting and tax affairs. This can be a time consuming undertaking that can impact your work/life balance as you might find that you’re spending time out of work hours organising your financial records or trying to complete your tax returns.

Engaging a business accountant will massively reduce the time you’ll spend on admin which can be used for core activities and business growth, or on other things you love such as holidays, hobbies or family time.

Working with Gorilla

At Gorilla Accounting, we keep things simple. For a fixed great-value monthly fee with no hidden surprises, all your business accounting and personal accounting needs will be expertly handled by your own dedicated accountant.

They will provide unlimited support, guidance and advice no matter how many times you contact us with a query. And you won’t have to worry about slow turnaround times when you contact us as your Client Service Guarantee means you’ll receive a same working day response to any queries submitted before 3pm or we’ll pay you £50.

Our streamlined onboarding service means we’ll have you up and running and enjoying the benefits of our service in no time. If you already have an accountant and would like to join us, switching couldn’t be easier. We can even contact your accountant on your behalf to get all the required information.

If you have any queries about our service or how we can help you, please call 0330 024 0406 to speak to an accountant or request a call back here.