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Most people’s perception of what an accountant does for a small business is that they simply step in at year end to tidy up the records, crunch the numbers and submit tax returns to HMRC in January. But in reality, when you ask what an accountant actually does for a small business, the answer is much more than you might think.
The role of an accountant has changed over time, with accounting software enabling their proposition to develop and focus more on strategic guidance rather than just taxes and compliance, and this is something we have embraced since our inception with accounting software included in all our accountancy packages, helping our accountants to deliver real business value to our clients.
Running your own small business can be very demanding, with pressure coming from all sides. Delivering for clients, hitting deadlines, winning new work, keeping records organised and managing your taxes can all quickly become overwhelming and the support of an accountant can significantly ease the pressure.
In this post we’ll explore some of the main ways an accountant can help small business owners stay organised and compliant, better understand their finances and tax affairs and save a lot of time which can be focused on business growth.
They Provide You With Accounting Software
Accounting software has transformed the way small business owners, and their accountants, manage their finances. We are huge advocates of accounting software which is why we provide FreeAgent or Xero to all our clients inclusive with all our accountancy packages.
Collaborative access means your accountant also has access to your accounts in the software, enabling them to proactively and efficiently manage your accounts and tax obligations year-round.
Accounting software streamlines many processes as well as improving accuracy with powerful inbuilt automation:
- Transactions import automatically from your business bank account
- The software reconciles and categorises them
- Tax and cash flow projections
- Send and track invoices through the software
- Key financial reports generated automatically
This combination of cloud accounting software and collaborative accountant support gives small business owners greater visibility over their finances, reduces admin time and fosters a more efficient, accurate and proactive approach to managing your business and tax affairs.
Powerful Reporting and Accountant Insight
One of the main benefits of accounting software is that key financial reports are generated in real-time based on the information you input throughout the year. Profit and loss statements, cash flow reports and balance sheets as well as customisable dashboards mean you get key financial metrics at-a-glance.
This makes it easy for you and your accountant to monitor business performance year-round rather than waiting until year-end, giving the financial insight needed to plan ahead and make decisions confidently. The value of an accountant is in how they can interpret these reports to identify issues such as cash flow concerns or opportunities to improve tax-efficiency and where costs can be cut to make a real difference to your financial position.
Their strategic guidance can be invaluable, covering areas such as:
- Business growth
- Managing costs
- Improving profitability
- Tax optimisation
- Cash flow planning
- Hiring employees
- Changing business structure
- Financial forecasting
Tax Management and Compliance
Tax management is a key responsibility for all taxpayers and the cornerstone of any accounting service. Engaging an accountant to manage this has major benefits for small business owners. Tax can be confusing and the legislation can change regularly making it even harder to ensure compliance, with a risk of penalties, fines and interest charges looming if you don’t meet your obligations.
When an accountant in your corner, you tax affairs will be in the hands of an expert who will:
- Prepare, validate and file your tax returns accurately and on-time
- Meet all HMRC deadlines and ensure compliance
- Manage payroll
- Claim all allowable expenses
- Ensure you take advantage of all reliefs and deductions
- Keep abreast of changes in tax law
This gives you peace of mind in terms of compliance but they will also ensure that tax optimisation strategies are in place to minimise your bill. Tax savings can be significant which can more than cover an accountant’s monthly fee, meaning you get expert support and keep more of your earnings.
They Save You Time
As well as making savings from your tax bill, accountants can also save you another very valuable commodity: time. Self-employed people are naturally very busy with big demands placed on their time, and an accountant and accounting software can relieve the pressure, streamlining admin tasks such as bookkeeping and putting others into the hands of your accountant, freeing up more of your time to focus on core activities.
Collaborative access makes a huge difference with your accountant being able to share live data through the accounting software, streamlining all facets of managing your finances and tax affairs.
This allows your accountant to review and validate records as you work, quickly identify issues, provide proactive advice and ensure your finances remain accurate and compliant throughout the year. The result is a faster, more efficient process that reduces stress, improves organisation and saves valuable time for busy business owners.
Our Accountancy Service
The role of an accountant has shifted from crunching numbers and completing tax returns to providing strategic guidance and overarching support that delivers real business value.
This has always been the cornerstone of our service, with expert support from your own dedicated accountant and industry-standard, MTD-compliant FreeAgent or Xero accounting software included at no extra cost.
Your accountant will be on hand to provide unlimited advice, support and strategic guidance to help you stay compliant, make better financial decisions and put the right strategies in place to build financial stability and drive business growth.
We understand the importance of ongoing support and that you need a quick response to any queries which is why you’ll receive a same working day response to any queries submitted before 3pm thanks to our client service guarantee.
Get in touch today to learn more about our accountancy service or get an instant online quote.
