You Are Never Too Small To Need An Accountant
Can a business be ‘too small’ to need an accountant?
At what point does a business need an accountant? We’ve all heard the statistic that 50% of small businesses fail within the first five years of operation, and of those that fail 82% do so because of cash flow issues. Despite being an expert in your field, finance isn’t necessarily your bag, that’s where a good accountant can step in and help ensure your businesses success. You may be thinking that this is something you can do yourself, but there are plenty of good reasons to leverage the skills of an accountant, especially whilst you are building your business.
What will the right accountant do for you?
Hiring an accountant to help you manage your cash flow will keep you on track and keep the flow in your cash. Business owners often underestimate the burden of keeping track of cash flow. Let your accountant shoulder the burden so you can focus on building and consolidating your business; doing the stuff that you love.
Primarily your accountant will manage cash flow by:
- Identifying and reducing expenses
- Tax planning
- Reducing late payments
- Ensuring you have optimised tax relief
- Identifying additional funding options
A good accountant will help future proof your business by assisting with forecasting, budgets, and planning. They will understand your financial situation, identify how much money you will have coming in and how much money you will have going out and therefore will be able to guide you in terms of what you can and cannot afford.
In the early stages of creating your business, the number of hats you will need to wear can be overwhelming, you will be a chief marketeer, sales, operations manager, customer services, finance officer and many more besides. By engaging an accountant to tackle the financial aspects of your operation you will have more time to concentrate on the parts of the business that only you can work on.
Your accountant can be a valuable resource to your business whatever your size. With the knowledge and experience, they hold they can become trusted advisors on your business strategy. By monitoring your growth, identifying key clients, and setting realistic targets, an accountant can help your business grow in a sustainable way.
As part of your exit strategy, your accountant will be able to prepare statements valuing the business.
With the amount of time, money and stress hiring an accountant can save for a small business, there’s no reason why you shouldn’t get an accountant on board from the get-go. The answer to the question, can a business be ‘too small’ to need an accountant, is NO. You’re never too small to need an accountant. In fact, 89% of small business owners recommend hiring an accountant! They can’t all be wrong.
Based in the heart of Basingstoke, HLandW has become the premier accountant for small business in Basingstoke. Whether your already trading, or about to launch your new business, we can help.