Your small business is one of 5.5 million in the UK, a huge majority of which have started in the same essential way: one bright-eyed and aspirational entrepreneur, taking a risk and making a break for a gap in a lucrative market. Some are, of course, more successful than others in this regard – and it’s in your best interest to be one of them.
A big initial mistake made by SMEs destined for failure is to attempt to run too ‘lean’; that is, SMEs that fail to invest in internal structure (i.e,: expanding employee bases and covering different operational needs) fail to grow the way they deserve to. A major part of this equation is finances, where it’s all too easy to attempt accountancy on one’s own. This, though, leaves a massive blind spot in your financial capabilities and responsibilities – one that can only be covered with an accountancy department. Here are the key ways in which accountants are vital for SME growth.
Strategic Financial Advice
The key assistive purpose of accountants for small businesses is that of guidance. Accountants are able to advise you on a wide variety of subjects in and relating to money, from budgeting your business’ investments to forecasting its growth and everything in-between.
One particularly important facet of this is cashflow management, which plays a key role in securing the financial sustainability and growth of all small businesses; without a consistent and structured approach to managing money in against money out, you could be in danger of losing investment altogether. A good accountant, then, is able to cover many bases, including helping with developing business plans, setting financial targets, and optimising pricing strategies.
Tax Compliance and Risk Management
Accountants are also vital voices for helping your business comply with essential financial regulations and tax obligations. Without a comprehensive understanding of your business’ finances, you run the risk of failing to meet your responsibilities as a business, which can lead to financial penalties at best and custodial sentences at worst.
All the more, with recent updates to UK tax reporting and regulations, the goalposts are ever-shifting. Accountants are indispensable for navigating compliance, optimising tax efficiency, and managing risk in a landscape which changes shape on a regular basis.
Leveraging Accounting Technology
Knowledgeable accountants are uniquely places to leverage advancements in financial tech, or fintech, on your behalf; cloud-based systems and automation tools are together transforming how small businesses handle accounts, by improving accuracy, access and insights altogether.
These tools are best utilised by accountants, and can help significantly with the growth of a business. Automation tools minimise the grunt-work required to input crucial financial data, while cloud services make that data available to teams internationally and without the need for unnecessary communication. This technology also makes presenting data much easier, which can be a godsend for impromptu HMRC audits or meetings with potential avenues for further investment.
Supporting Growth and Stability
Beyond compliance, accountants help businesses grow by providing ongoing financial advice, scenario planning, and access to strategic opportunities tailored to changes in company size thresholds and economic conditions. Highlight the long-term benefits of having an adviser who understands industry trends and links financial health to greater business stability
https://www.nayloraccountancy.com/news-and-advice/how-accountants-help-small-business-grow#:~:text=Proactive%20accountants%20act%20as%20strategic,attracting%20investors%20or%20securing%20loans.
https://www.unicornaccountants.co.uk/blog/the-vital-role-of-accountants-in-business-growth
https://xeinadin.com/industries/small-businesses/
accountants for small businesses – Longtail
752616 – Steph Ashby – Xeinadin Group Limited – TBC