DIY accounting might sound like a good economy, but investing in an accountant could be the best financial decision you make as a business owner.
When you’re starting out as a small business owner, it’s tempting to go DIY with your accounting. If you do opt to do your own bookkeeping and accounting, you will face 5 big challenges.
When you first start your business, you might think raising a few invoices, paying a few supplier bills and making sure there’s cash in the bank is all it takes….
When working with qualified tax advisors it means every transaction is correctly accounted for expense Type, Vat, Corporation Tax and great opportunity to some tax planning.
As your business starts to grow and you take on more customers and employees, your accounting records and finances are likely to get more complicated, not to mention time consuming.
Do you choose to focus on maintaining your finances or running your business?
Here are five of the common challenges of going down the DIY accounting route:
1. The knowledge gap
o Getting to grips with all the accounting principles and tax regulations is complex and trying to navigate around these financial complexities without the right knowledge and experience will lead errors, mis postings , poor record-keeping and non-compliance with local company and personal taxes.
2. The drain on your time
o Managing bookkeeping, payroll, day-to-day accounting and tax filings takes a lot of time out of your week. Recent stats have show that business owners can spend from 5-6 hours per week on financial administrations that is time you are spending NOT working on growing your business. As an ambitious owner, you should be concentrating on business development and the other strategic tasks that will push your growth – not doing the books!
3. Staying up to date with the tax regulations
o Corporation tax and accounting regulations change frequently and If you’re not familiar with the latest regulatory changes, there’s every chance that you’ll fail to meet your compliance duties. Also you might be missing out on the latest government incentives and tax reliefs that could save your business tax and generate cash flow that could fund the next stage in your business expansion plans.
4. Anxiety about a HMRC investigations
o Going through a HMRC investigation can be stressful and with no accountant, your record-keeping may be haphazard, making the job more difficult, time-consuming and disruptive.
5. A lack of strategic insight
o If you’ve never run a business , you unlikely to be aware that good financial management means better business decisions which drive your strategy forward. The better your accounts, the higher the quality of your finance data, better your reporting and management information equals better foundations to make strategic decisions ,setting budgets and better forecast and manage cashflow etc.
How working with an accountant turns these challenges into business benefits
Good news is that partnering with an accountant can very quickly lighten this load and get you back to focusing on your business.
By engaging an accountant to take on your financial management, you get:
1. The knowledge of an experienced finance professional
· When you hire an accountant, you add a financial expert to your team. They'll help you navigate the complexity of accounting, will keep your records accurate and will make sure you comply with all relevant tax regulations. This minimises errors and maximises your deductions.
2. More time to focus on the business
· By delegating your bookkeeping, payroll, accounting and tax filings to an accountant, you free up valuable time. This gives you more time in the day to talk to customers, develop growth strategies and build relationships with clients, partners, lenders and investors.
3. Stay ahead of the regulatory curve
· A professional accountant knows exactly which legislative and regulatory changes are planned and will make sure you’re always ticking the right compliance boxes. They’ll also be aware of any new government tax deductions or funding incentives that may open up extra cash for your business plans.
4. Peace of mind
· With an accountant managing your accounts, you can rest assured that you have the best possible record-keeping, reporting and financial compliance. Your accountant helps you overcome business challenges which can cutting down stress and keeping you focused on running the business.
5. Expert strategic guidance
· Accountants do way more than just crunching numbers. Your accountant will work with you to analyse your financial data, manage your cashflow, identify patterns and trends and provide the valuable insights you need to inform your decision-making. An accountant is a key part of your management and strategic team, helping you drive the success, efficiency and profitability of your business.
Hiring a great accountant is the best investment in your business, saves you the time to focus on growing your business.
Here to lighten the load, sort out your accounts and put you back in complete control of your finances and strategic decision-making.
Get in touch to discuss taking on your accounting tasks
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