A good accountant is the backbone of any business. They can help you find ways to reduce taxes, negotiate better contracts, and even teach you how to be a better business owner! Let’s take a look at five reasons why you should instruct an accountant for your business.
1. A Good Accountant Will Always Treat Your Data confidentially
Your accountant is party to a lot of sensitive information such as your bank transactions and business spending habits. They will know all about your financial situation. They won’t tell anyone else what they know about your business finances unless you give them permission or they are legally obliged to do so. This can be especially important if you are self-employed or own multiple businesses. You won’t need to worry about your financial information being shared with anyone across multiple businesses.
If you use a Chartered Accountant, they are also governed by their Institute’s professional standards as well as accounting best practices.
2. An Accountant Can Help You Prepare For Your Year End & VAT Returns
Paying your taxes is never fun. The tax season can be an absolute nightmare if you don’t have the proper preparation and planning in place. Instructing an Accountant well in advance of your year end, or ideally upon the initial set up of your company, will give you the benefit of having your accounts properly prepared, and filed on time avoiding any penalties.
A good accountant will be familiar with all sorts of deductions that can help reduce your tax liability at the end of the year. They can help ensure that your business is as tax efficient as possible, and make sure that you, as a busy business owner, always have access to up to date information.
3. A Good Accountant Will Teach You How to Be Better Manager
Accountants do a lot of work behind the scenes and they also have valuable knowledge about the best way to manage your business. Accountants can help you prepare a budget and monitor performance against it. They can help appraise an investment opportunity to see if the return is worthwhile. You’ll walk away as a better manager knowing how to make the right financial decisions for your business.
4. An Accountant Can Help You Find New Opportunities
As a business owner and certainly if you are an entrepreneur, you’re probably always on the look out for new opportunities to expand your business and climb up that success ladder! Accountants can help you find those opportunities by helping you interpret financial information as well as suggesting how things might be improved.
For example, if your profit margin for a product is low, an Accountant can and help you find ways to increase this by selling at a higher price or by looking for cost reductions.
5. An Accountant Can Help You Plan For the Future
Businesses don’t just exist in the present – there are all sorts of things to consider when thinking about the future and how you can ‘future-proof’ your business, especially in the current economic climate.
Accountants can help you plan for your business’s next steps such as exploring an exit plan for retirement, acquiring new premises, purchasing equipment to improve efficiency, hiring additional employees for expansion, and more… They will likely have some knowledge of business laws and regulations, so that you won’t get into legal hot water or miss out on a potential opportunity.
Instructing an accountant for your business is crucial because they are the backbone of any successful company. If you agree that instructing an accountant is essential, let me introduce you to Armstrong Accountants. We have been with Armstrongs, in one form or another, since forming our own company back in 2019.
We’ve referred Armstrongs to many clients and have received nothing but glowing feedback.
