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Why Do Small Businesses Need An Accountant?

As the lifeblood of any local economy small businesses can continue to thrive with the help of a good accountant. But why are accountancy services so important to new start ups in particular? Well, there are a number of reasons and before you even begin to trade, a quality accountancy service will have expert knowledge on laws and legislation surrounding topics like taxation and reporting requirements. This means a business owner can get the right professional advice from day one, which is of paramount importance given today’s economic climate.

Why use a small accountancy practice rather than the ’traditional’ large practice?

Because quality accountants offer a personal service, they can take the time to go over things with you. Sometimes the smallest of details can make a very big difference to your decision making, and of course it’s not just about business and figures. It’s also about people. A personal accountant can also free up valuable time so you can concentrate on building your business or service by the shortest possible route.

Make A  Note

It’s a good idea to talk to an accountant before you launch your business, because they can advise on which approach to take. Should you become a sole trader, partnership, limited liability partnership, or limited company? These are all important questions to ask. They will also be there to advise on a whole range of issues as you move forward. In fact we can help give you extra confidence.

A sole practitioner running a small practice will pride themselves on the personal service they give clients, they know each one individually, and clients are not just a number. It’s amazing how many businesses with large ‘traditional’ practices end up this way. Another bonus is that a sole practitioner generally have much lower overheads and able to offer much more flexible and affordable fees.

What Other Things Are Important?

Well for a start you’ll need an efficient continuous cash flow and we can be of great assistance in this on an ongoing basis. Well planned budgeting is essential for any small business with designs on making healthy future profits and achieving their targets. Getting it right at the beginning is a necessity.

Regular book keeping is very important, a small accountancy practice can provide bookkeeping assistance a service which will ensure everything is kept up to date to avoid any future problems. There can be quite a bit to think about from the purchase ledger to the sales ledge, managing cash and keeping a check on the bank and of course VAT returns.

Most small businesses already have a great deal to handle as they carefully plan for the future. Having an extra pair of hands to keep you on the right track can prove invaluable over the longer term, and help steer them through what can be a bit of a minefield in the early days. It’s great being able to hand the Year end Accounts (Profit and Loss & Balance Sheet), over to someone else, as you just get on with running the business.

Food For Thought

In time you should be able to build a good professional relationship with any accountant which can become a vital tool in your armoury.  A sole practitioner knows as in their own case a small business, can fully appreciate the problems associated with new businesses looking to get a foothold on the ladder to success.

Let’s Make Some Important points Here:

An accountant can provide support at the beginning to help you transfer ideas into concrete plans; assisting with business plans, cash flow forecasting and budgeting. Professional accountancy continues to be a valuable area of expertise and as such all services are monitored for the maintenance of the highest standards.

With a small practice and sole practitioner you can rely that you accounts are being prepared by and looked after by a person who has:

  • Studied and passed professional examinations.
  • Are governed by strict regulations on ethical conduct.
  • Belong to a professional body and consistently monitored to ensure their practices are up to date.

Having an accountant you can trust can be a priceless asset for your business, no matter how small. And of course if you’re a start up then it can be a big relief knowing you can call on accountancy services steeped in experience. It can be very easy to get the wrong advice and get off on the wrong footing as a result.

Muzahed I.
Muzahed I.
I am Muzahedul Islam. Executive Editor of Reach me out for writing opportunities on this website.
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