Business owners might presume that growth is all about winning new customers and expanding into new markets.
While they are not wrong, there is one asset behind any successful business that is often overlooked.
A good accountant. Research from Intuit QuickBooks found that small and medium-sized businesses using accounting services experienced an average revenue increase of 11.5 per cent compared to those that did not.
This shows just how valuable professional advice can be for growth and there are so many other benefits that hiring the right accountant can bring.
1. Clarity on your finances
Before you make any moves on growing your business, you need to understand your finances in greater detail.
Not having clear financial reporting processes or accurate figures makes it that much harder to make informed decisions that will benefit your business’s future.
Your accountant is the one who shines a spotlight on your income, expenses, profitability and performance – and then backs it up with advice that adds real value to your decision making.
They are a reliable financial adviser who can give you certainty that your decisions are backed by numbers.
So, you’ll feel more confident hiring more staff or investing in new equipment as you know you can afford it.
An accountant will also put a magnifying glass on your finances to spot any trends or rising costs and help you react quickly to them before they become larger problems.
2. Cash flow management
Cash flow remains one of the biggest challenges for growing businesses.
Even profitable companies can struggle if money is not coming in at the right time or expenses are not properly managed.
An accountant can help monitor and forecast your cash flow, which can be crucial for periods of growth, as costs often increase before revenue follows.
They can also help spot any unnecessary spending and ensure you are making the most of any available tax reliefs, which can help your business become more profitable.
Healthy cash flow also allows your business to scale its operations and manage unexpected costs without significant disruption.
3. Keeping you compliant
Keeping up with changing regulations and reporting requirements can feel like a burden for many business owners.
A good accountant will keep your business compliant and reduce the risk of costly mistakes or penalties.
They can support you with your:
- VAT registration and returns
- Tax planning
- Payroll
- Pension contributions
- Corporate tax filings
- Bookkeeping
- Audits
Having an expert manage these services can give you more time and energy to grow your business rather than worrying about deadlines.
4. Effective tax planning
Effective tax planning is not just about submitting returns on time, although this is important.
A good accountant should ensure your business is operating as tax efficiently as possible and that you are remaining compliant with current legislation.
They should review your financial position regularly to spot any opportunities to claim available reliefs and maximise allowable expenses.
The money saved through effective tax planning can then be reinvested back into the business for recruitment, expansion, marketing or product development.
It’s hard to keep up with the changing tax rules and having professional advice by your side can help you stay informed and prepared.
5. Planning for the future
A good accountant should help you grow for many more years to come and their advice should factor in your long-term goals.
Accountants can use forecasting and budgeting to help you build realistic growth plans and measure progress over time.
They are also there to help guide you through periods of economic uncertainty and keep your business afloat during changing market conditions.
If you are planning to secure funding or improve profitability, having a trusted financial advisor can give you clarity throughout the process.
We are the right accountants for you
A growing business should have an adaptable accountant by its side, one who can help you stay on top of changing legislation and ahead of new tax policies.
Our team offers personalised advice tailored to your unique situation and long-term plans.
We can support your cash flow, compliance, accountancy, management accounts and tax planning needs so you can continue to thrive.
