It’s not uncommon for a small business owner to take on several roles within their company, especially when they’re in start-up phase. Becoming the business accountant is no exception.
We wouldn’t be surprised at all if you started off tracking your finances on a spreadsheet. 60% of small business owners feel they aren’t knowledgeable about accounting or finance so it’s the natural place for most to begin the business finance journey.
That being said, as your business finds its place, you’ll probably want to look at a more robust accounting package and hire a professional accountant. You will not only need someone that can take care of the traditional accounting work, but someone that can analyse your business finances and provide solutions to help drive business growth.
Is it the right time for you to hire a small business accountant?
Here, we’ve come up with a list of key instances which should signal to small business owners that it’s time to hand over the accounting work to a qualified accountant.
1. Your business has grown rapidly
Every small business owner wants growth – it’s a sign of success. But with your business growing fast, you’ll need to become more organised in order to manage the growing number of clients, staff, inventory and so on. Don’t limit your growth by trying to wear too many hats.
A small business accountant like us won’t just focus on freeing up your time by taking on the financial requirements, we keep track of your business growth, spot opportunity and give professional advice to drive even more growth in the future.
2. You’re seeing an increase in revenue, but not profit
If you’re seeing a lot of money coming in to the business, but profits are minimal, an accountant should be considered. A small business accountant may be able spot areas of weakness and opportunity to offer suggestions that could make your business more profitable.
Some small business owners worry that more profit can lead to more tax and we recognise that. We help you plan properly so that you can maximise profits whilst being tax efficient. 52% of small business owners feel they pay too much in taxes, but a good accountant will provide their clients with the most tax-efficient remuneration package to help minimise tax liabilities.
3. You want to make a large purchase or investment
When it comes to making a large purchase or investment as a small business owner, you’ll probably need some sort of professional guidance. Should you buy? Lease? Or just unsure if the business asset will be worth it? A qualified accountant can provide a calculated, expert opinion. By assessing your business’s current financial situation they’ll be able to provide guidance on how much money you can afford to spend and what impact it will have on your business now and in the future.
4. You’ve received a tax audit
We understand as a business that tax audits can be stressful, they include a lot of paperwork and communication with HMRC.
Facing an audit and don’t already have an accountant? Now’s the time. An accountant will help you fly through the large amounts of paperwork, identifying the information required to fulfil HMRC’s inquiry with accuracy.
At HL&W we deal with all HMRC correspondence on your behalf, freeing up your time so that you can continue to focus on the day-to-day activities of running your business.
5. You’re required to provide financial reporting
You may get to a point where you want to start looking at getting a loan or perhaps bringing on an investor. In order to do so, your company’s financial history will be a huge player when it comes to the application or investor proposal and you need to ensure you provide all of the information in a clear, easy to digest format. Brining on a professional accountant should make this simple. They’ll guide you through the process and ensure you don’t miss any critical information.
If you are considering an accountant and are based in Hampshire or surrounding areas, contact us today to discuss how we can help your business.