70 per cent of small businesses don’t have an accountant – here’s why you should

70 per cent of small business don’t have an accountant- here’s why you should | 4-minute read

Each year 82 per cent of small businesses fail due to poor cash flow management, but this need not be the case. Outsourcing your accounts to an expert accountant with access to the latest accounting software makes it easier than ever to manage, view, and analyse the financial wealth of your business.

One of the main reasons small businesses don’t use an accountant is that they don’t understand the important role of an accountant or how helpful they can be. When you use an accountant, you save money, reduce stress, get expert advice, and have more time to focus on the aspects of the business that spark your interest.

Currently, 70 per cent of small businesses don’t have an accountant so are not able to access the plethora of benefits that come with outsourcing their bookkeeping and accounts. If you are a small business that currently does not have an accountant, here are three reasons why you should hire a small business accountant today.

Expert and unlimited advice

A common accountancy misconception is that accountants exclusively deal with taxes, but this is outdated and an inaccurate way of thinking. Accountants can offer your small business much more than on-time and accurate tax submissions. They also provide informed financial advice, unlimited support, business strategy, and a range of other accounting services.

60 per cent of small business owners feel they aren’t knowledgeable when it comes to finances and accounting. Don’t let a lack of knowledge and expertise hold your business back. When you reach out to an accountant you can benefit from a wealth of industry knowledge and experience.

For instance, if a small business is struggling with cash flow management, an accountant can provide tailored advice on restructuring expenses, negotiating better supplier terms, and implementing cost-saving strategies. They also provide unlimited support, business strategy, and a range of other accounting services.

The latest software

25 per cent of small businesses still track their finances and accounts using pen and paper rather than specialised accounting software. Although manual methods and spreadsheets may once have worked well, access to the latest accounting software will ease the complicated task of accounting for small businesses and provide clear, up-to-date, and accurate financial insights.

Cloud based accounting software like Xero offers real-time financial tracking, automated payroll processing and seamless integration with banks.Advanced security features mean businesses can safely store financial records and access them from anywhere. This means no more worrying about misplaced invoices or incorrect calculations.

In addition, keeping track of bookkeeping, payroll, and accounts using accounting software such as Xero will help keep things concise and simple when tax returns are due.

At React Accountancy, you get Xero accounting software automatically included in your package because we believe access to the latest software really makes a difference.

Growth opportunities

Business growth is a common goal among many small business owners, but as good as the word may sound, it can present its own set of unique challenges. Sudden growth you haven’t accounted for can lead to cash flow, tax, and staffing issues that you don’t know how to navigate. With an accountant by your side from the very beginning, you can identify sustainable growth opportunities and create an established business plan to make growth what it should be, exciting.

Many businesses fall into the trap of expanding too quickly without a clear financial plan. This can lead to excessive overhead costs, payroll difficulties, and even legal complications. An accountant helps ensure strategic expansion and can advise on investment decisions, financial forecasting, and more.

What’s more, once your business takes off, your accountant can deal with compliance, tax, and bookkeeping tasks so you have more time to run daily business operations.

Improve your invoicing and cash flow

Cash flow is incredibly important in any business and getting it right is integral to the success of your business. After all, cash is king and unpaid invoices can have a huge impact on all areas of your day to day operations and processes.

Hiring an accountant can help you to set up and automated invoicing system in a bid too:

• Send invoices efficiently
• Check what invoices have been paid and what invoices haven’t
• Give customers a choice of multiple payment methods
• Accountants can also give you good advice on invoice payment terms

Boost your profitability

Accountants are experts when it comes to helping businesses to boost profitability by identifying growth opportunities.

A qualified accountant also has the skills, knowledge and expertise to identify areas in which you can boost profit by removing  unnecessary costs and pinpointing what areas of your business drives revenue.

For example, they might identify that certain products or services yield higher profit margins and advise reallocating resources accordingly.

Clarify Future Business Directions

In the early stages of growing a business, it’s paramount that you always look to the future, so that you can work towards achieving your business goals.

An accountant can help you not only to make these decisions, but also help you to understand the steps you need to take to get there! This level of clarity can prove invaluable when it comes to making smart business decisions.

Beyond day to day financial management, accountants assist with business planning, funding applications, and investment strategies. Whether you’re looking to sell your business in the future, secure a business loan, or attract investors, a local accountant ensures that your finances are in top shape for these major decisions.

Why choose React Accountancy?

Here at React Accountancy, we provide trusted accountancy services to start-up, established and multi-national businesses across a diverse range of industries.

From the moment you get in touch, our approachable, friendly and professional team will go above and beyond to ensure that you receive the right advice, support and accountancy solutions for your business.

All of our team has years of experience in providing accountancy services that support your business including complex financial issues.

Get in touch today for further information about any of our services.

You can reach us on 01914324110 or contact us via email using info@reactaccountancy.co.uk

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https://reactaccountancy.co.uk/xero-online-accounting-services-a-guide/

https://reactaccountancy.co.uk/choosing-the-right-accountant-for-your-small-business/

https://reactaccountancy.co.uk/the-small-business-guide-to-managing-cash-flow/