Whether you have a new business idea and looking to set up a new business or you are an established business with bookkeeping solutions in place, UK compliance in particular necessitates appointing a qualified accountant who cannot not only provide expert commentaries on your financial performance but can also guide your business in the right direction with their compliance and tax saving advice.
The article is compiled after doing extensive research on how to choose the best accountant for a small business in the UK and why it is necessary for every small business to appoint an accountant very early in its business life.
Tips to choose an accountant for a small to medium-sized business
Before you appoint a reliable accountant, it is advisable to carry research to ensure suitability for your business.
Know your needs
It is essential to understand what type of responsibilities or tasks you are expecting your accountant to handle. Whether you need monthly reports or tax planning advice, should be discussed before approaching an accountant.
Ask for recommendation
Although most businesses now look for their first Accountants in Walsall, online, you should consider asking other business associates about any recommendations. Getting a recommendation from peers will help you to make a better decision, however it is important that you discuss all business requirements in detail with your prospective accountant.
After obtaining suitable recommendations to compare the fees based on expertise and level of support on offer, for a small business, it is perhaps easy to appoint the firm with the lowest fees, however it is equally important to understand the value a good accountant can add to you business’ bottom line. You can also look for social media presence of the potential accountant to somewhat ascertain how connected they are with their clients.
You need an accountant to help your for compliance and all tax matters, therefore, use the initial discussion wisely and also set the expectation about the reporting and communication and always count on an accountant who meets ALL your requirements. It is important to not rush into a decision and in particular, to not appoint the lowest quoted. It is adviseable to use your meeting with an accountant to have all your questions answered, fees and its basis discussed and to understand what level of support is on offer. This will allow you to ensure an informed decision is made.
Why a small business must have an Accountant in the UK?
Most businesses think that an accountant will cause extra cost and it is okay to rely on accounting software or perform basic accounting duties yourself. Hiring an accountant remains essential, whether you are a seasoned vet or just a start-up. Here are some convincing reasons why every small business needs an accountant.
You are a start-up and have no prior knowledge in Accounting
Financial statements are not as easy as they seem, creating reports or utilising financial terms is gibberish. However, relying on an accountant can be an excellent choice and worth the cost. An accountant will help you devise a financial strategy, a business plan or can guide you on how to handle finances right off the bat.
An accountant will help you avoid extra tax and penalties.
A small business most of the time does not have the fundamental knowledge regarding taxes or how to complete filings. An accountant can help you do it right and to make sure you are paying the accurate and relevant taxes that ultimately save you from penalties and fines. An accountant can provide you the best value by informing you of any possible tax savings, saving you potentially thousands of pounds.
You need a financial plan or loan
You need an accountant for your business for several reasons, one of the most important reasons is to come up with an excellent financial plan or to assist you with arranging a small business loan. An accountant will help you through a loan application and the available choices- you can follow to have the loan at the lowest interest rates.
Moreover, an accountant will be in a better position to answer the bank’s information requirements regarding your company’s revenue projection and finances, while demonstrating how effectively you are planning to utilise the loan.
Your business is growing at a fast pace
You are generating sufficient revenue out of your small business, but growing businesses can its own issues mainly cash flow issues. Small business accounting is not as easy as it seems and becomes overwhelming when you get to serve more customers. A business accountant will excellently track what you owe and who owes you. Moreover, an accountant can help you to invest your extra money you gathered through your sales that eventually makes you a successful business and keeps the cash coming in for a long haul.