Can an Accountant Help Grow Your Business?

A good accountant can’t grow your business for you—but they can remove many of the obstacles that stop it from growing.

One of the questions I’m occasionally asked is whether an accountant can help grow a business.

My answer is always the same.

No accountant can grow your business for you.

If someone claims they can, I’d be sceptical.

Ultimately, it’s your vision, your decisions and your willingness to take risks that determine whether your business succeeds.

However, that doesn’t mean an accountant has no role to play. In my experience, a good accountant can have a significant impact on the growth of a business by removing many of the financial and tax obstacles that often hold businesses back.

1. Giving You Better Financial Information

One of the biggest problems I see is that many business owners are making important decisions using out-of-date information.

If you’re only looking at your accounts once a year, you’re effectively driving your business by looking in the rear-view mirror.

Good management information allows you to answer questions such as:

• Are sales increasing?

• Which products or services are most profitable?

• Is cash flow improving or getting worse?

• Are overheads under control?

• Are margins reducing?

Making decisions based on current information is almost always better than relying on instinct alone.

2. Helping You Understand the Numbers

Producing accounts is only half the job.

Understanding what those figures actually mean is far more important.

I’ve met many business owners who receive a set of accounts each year, sign them and file them away without ever discussing the results.

A good accountant should help explain:

• Where your profits are coming from.

• Where money is being wasted.

• What your biggest risks are.

• What opportunities exist to improve profitability.

Numbers should help you make decisions—not simply satisfy HMRC.

3. Planning for Growth

As businesses grow, financial planning becomes increasingly important.

Questions such as:

• Can I afford to employ another member of staff?

• Should I move premises?

• Can I invest in new equipment?

• What turnover do I need to achieve next year?

• How much tax should I budget for?

These are all areas where an accountant should be able to provide guidance.

Although they cannot make these decisions for you, they can help you understand the financial consequences before you commit.

4. Making Sure Your Business Is Tax Efficient

Many businesses pay more tax than they need to simply because nobody has reviewed their structure.

A good accountant should regularly ask questions such as:

• Is your business structure still appropriate?

• Are you extracting profits tax efficiently?

• Are all available tax reliefs being claimed?

• Would a limited company still be the right structure?

• Are family members being remunerated appropriately?

Good tax planning doesn’t create growth on its own, but it can leave more money available to reinvest back into the business.

5. Helping You Raise Finance

Growth often requires investment.

Whether you’re buying equipment, recruiting staff or expanding into larger premises, funding can become an important part of your growth strategy.

Many experienced accountants have relationships with:

• High street banks

• Commercial finance brokers

• Asset finance providers

• Invoice finance specialists

• Venture capital investors

• Angel investors

Whilst an accountant cannot guarantee funding, they can often help prepare financial information that gives lenders confidence in your business.

6. Acting as a Sounding Board

Running a business can sometimes feel lonely.

Many owner-managed businesses don’t have a finance director or board of advisers.

A good accountant can provide an independent opinion when you’re considering major decisions.

Sometimes that means confirming you’re on the right path.

Sometimes it means pointing out risks you may not have considered.

Either way, an experienced external adviser can often save costly mistakes.

So, Can an Accountant Grow Your Business?

Not directly.

Nobody understands your customers, your products or your market better than you do.

You are responsible for growing your business.

However…

A good accountant can:

• Provide better financial information.

• Help you understand your numbers.

• Improve tax efficiency.

• Support business planning.

• Help you obtain finance.

• Challenge your thinking.

• Remove financial obstacles that may be limiting growth.

In my experience, that’s where the real value lies.

Final Thoughts

If you’re looking for an accountant who promises to grow your business, I’d be cautious.

If you’re looking for an accountant who will help you understand your numbers, improve profitability, minimise unnecessary tax and support better decision-making, then they can become one of your most valuable advisers.

At Paul Marks & Co Chartered Accountants, that’s exactly how we see our role.

We can’t grow your business for you.

But we’ll do everything we can to remove the financial obstacles that stand in your way.