As bookkeeping software is simplified and more business owners do their own bookkeeping, there is the perception that hiring an accountant is not necessary. But accountants are not bookkeepers, they are trusted advisors. Many believe that they will save money by handling accounting matters themselves but this is a common mistake. Accountants have expertise in finding cost-cutting solutions and creating investment strategies which can result in a company actually reducing expenditure.
No matter what stage your business is at, an accountant is a valuable business partner:
- Start-up
During the start-up phase of a company, the advice of an accountant can prove highly beneficial for years to come. They can provide guidance on the most appropriate business format (e.g. sole trader, partnership, private limited company) by looking at the implications for tax, funding and personal liability for each option.
When preparing a business plan, an accountant can also come in handy. They can provide financial projections and provide you with a clear outlook of where your business can go.
- Growth
First of all, an accountant can help a business experience periods of growth by reviewing the business and identifying areas that could expand and improve the bottom line.
Once a company is at the growth stage, an accountant can provide advice on how to handle the growth and identify opportunities that should be seized.
If your company is growing or plans to grow, hiring a management accountant is a more valuable investment. Management accounting is about looking ahead and achieving your business plans. We have chartered management accountants in our team who use the latest digital accounting software to create forecasts that provide you with a clearer view of your business as it grows.
- Maturity
When your company has reached maturity, it may just want to focus on ensuring day-to-day operations are effective.
Unless you are an accounting or tax expert, dealing with daily accounting issues can be problematic. To ensure you are compliant with the law and that tax preparations are accurate, hiring an accountant is necessary. They can remove the difficulty associated with interpreting and staying up to date with tax laws and accounting standards.
At Amas, we can automate and simplify accounting processes with digital software, so that your day is not filled with transactional and administrative tasks. With the Making Tax Digital deadline looming, hiring digital accountants, like us, to ensure you are digitally compliant has never been more important.
- Decline
If your business is struggling financially, an accountant can save it from failing. It can be difficult for business owners to allow someone else to help manage their business and offer alternative paths that deviate from their original plan. However, it is important for clients to allow their accountant to target their key pains e.g. cash flow, an under-performing product, delayed decision-making, and show them a positive direction. Once a client puts trust in an accountant’s expertise, their business can start to turn-around.
All major successful businesses have an accountant which is not a coincidence, they are essential. They have a unique and valuable skill of turning data into information. Financial accounts mean nothing without interpretation. Accountants translate the figures and provide profitable advice that cannot be gained by doing your accounts alone.
Speak to us to reap the benefits an accountant can provide. Call on 01292 388 031, email info@amas.biz or come along to our office at 8 Miller Road, Ayr for a chat.