What to consider when hiring an accountant?

Written by Sam

September 25, 2023

Starting your own business can be both simultaneously exhilarating, and frightening! Most people who start their own businesses will say they chose to step out on their own because they wanted control of their working lives. The flexibility to choose their work-life balance and the control to work in line with their personal morals and ethos, rather than having to answer to anyone else. But let’s face it, becoming a small business owner brings a lot of responsibility. More often than not, there is a tremendous amount of work before you can reap the rewards of a well-honed and efficiently run business. You may have had ideas of working fewer hours and regulating your workload. However the truth is, at the beginning, it can feel like an endless to-do list! Many new business owners also find it difficult to delegate, leading to them feeling overworked and overloaded. Could hiring an accountant could be part of the solution?

Accounts are one aspect of running and growing a small business that can be simply and effectively delegated from early on in your business journey. As a tax-deductible expense, you may like to consider delegating some, or all, of your financial-related tasks to an accountant. Accountants can help at various stages of growth in your business. Using their expertise they can help you save money, understand your financial position, and identify areas for growth and investing in your business.

Hiring an accountant can be useful to several aspects of your business’ finances.

So, what do you need to consider when thinking about hiring an accountant?

To assist you in the decision-making process, at Reign Accounting, we have put together three main points to contemplate when deciding whether to employ the services of an accountant.

Financial expediency:

You may think that paying for an accountant is an inefficient use of your limited resources and that you can complete your own accounts. However, hiring an accountant could save you money and time!

Firstly, it’s quite possible you’d pay an accountant less per hour than you pay yourself! Quite simply an accountant spending 10 hours on your tax returns and invoicing would be more efficient than doing it yourself. Especially as they’ll likely be able to complete it much faster than you will. What’s more, their fees are tax deductible. They’ll ensure you’re paying the correct amount of tax. This could involve not overpaying! They’ll ensure you list the right expenses to be counted as tax deductible for your business type. They’ll know when you can carry over allowances from one tax year to the next and how to apply them in your statutory reporting. So, hiring an accountant may actually save your business money.

Accountability:

Providing you supply the correct information; your accountant will ensure your HMRC submissions are correct and filed on time. You can expect them to keep you abreast of new and updated tax laws. Check that your and your employees’ tax codes and payments are correct and appropriately recorded. Should you find yourself the subject of an audit, your accountant will answer HMRC’s enquiries quickly, correctly. Without you scrambling around to understand what is being requested of your business. At the heart of an accountant’s process is order and accountability. They will store and file your financials in an organised and readily accessible fashion.

Growth:

Having a relationship with an accountant who understands your business and the sector it is in can improve your opportunities for business growth. A good accountant will help you to understand the state of your finances and how profitable your business is. Small business accounting can become complex. By helping you stay in control of your account recording and reporting, your accountant will be able to share key business metrics with you. This will enable you to understand your position at a glance and to make swift decisions regarding your cash flow. Importantly, they can help you keep track of outstanding invoices. Both those owed by your business and to your business, ensuring you know who to chase and when for overdue remittances. Thereby allowing you to maintain a healthy relationship with your own suppliers.

In conclusion:

Businesses do not grow in clearly defined increments. They fluctuate, and income rises and falls. Hiring an accountant can help you to manage your business through its growth transitions. With prudent financial analysis they can help you to see, and navigate, a path to success and relevant stability. Using their knowledge of tax legislation, they may be able to suggest ways of freeing up funds for expansion or help control cash flow in times of difficulty.

That being said, it doesn’t necessarily mean you have to hire one. However, the right accountant who’s willing to work with you and listen to you can make your life easier. Your business will become better financially organised and efficient. Thereby actively enabling you to focus your expertise and passion on what you do best and helping you to achieve your ideal goals.

If you decide that now is not an appropriate time to involve an accountant that’s okay too. Especially if you’re able to keep on top of all things financial yourself but bear in mind that the above considerations are ideally reviewed at various stages of your business’ lifespan. It’s a good idea to revisit them from time to time.

Your passion is your business, accounting is ours. Reach out for a consultation! Let’s see what we can do for you and how your business may benefit from a little additional accountancy advice.


Nicole Collins x

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