50% of small businesses fail within their first five years, and many business owners don’t realise it. Typically, this boils down to one main cause. Financial management.
Although we can’t say hiring an accountant saves all small businesses from failure, it certainly helps prevent it. In fact, 82% of small business closures are caused by cash flow issues - something that can be avoided by hiring the right accountant.
But what are the roles of an accountant in a small business? And how do they benefit you?
1. Improving small business cash flow
As mentioned above, poor cash flow is the main reason small businesses fail. An accountant can help improve your cash Flow by:
- Identifying and reducing expenses
- Tax planning
- Helping you reduce late payments
- Ensuring you’re optimising tax relief
- Creating additional funding options
In short, there are many ways a small business accountant can help improve your cash flow. Hiring an accountant to manage your cash flow will take the weight of your shoulders as a business owner, helping you concentrate on doing what you love.
2. Future proofing your small business
An important role of an accountant is to assist with forecasting, budgeting and planning. They’ll understand your financial situation, work out how much money you’ll make in the coming months and give you much needed insight into what you can and can’t afford.
Another way a small business accountant can help future proof your business is by keeping track of annual incomings and outgoings. This means that if/when you decide to sell your business, your accountant will be able to prepare statements to prove the worth of your business.
3. Helping your small business grow
A small business accountant can be a valuable resource to your company. With the knowledge and experience they hold, they can become key advisors for your business plan. By monitoring your growth, identifying valuable clients, and setting realistic targets, an account can help your business grow in a sensible way.
As qualified and experienced accounting professionals, HL&W can help take your small business to the next level. By simply freeing up your time, offering valuable insights into your finances, and advising on future investments, we help take the pressure away from you.
If you’re looking for a small business accountant in Hampshire, contact us today for more information on our range of accounting services.