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Why Small Business Owners Need A Professional Accountant

As a small business owner, one of the most important decisions you will make is choosing who will handle your finances.

While some entrepreneurs may try to handle their accounting themselves, it’s often better to hire a professional accountant.

In this article, I will explain why hiring a small business accountant is important and how it can save you time and money.

Introduction to the Importance of Small Business Accountants

Running a small business is no easy feat. Not only do you have to manage your daily operations, but you also have to keep track of your finances.

While some entrepreneurs may try to handle their accounting themselves, this can lead to costly mistakes. That’s why it’s important to hire a professional accountant.

A small business accountant can provide a range of services, including bookkeeping, tax planning, and financial analysis. They can help you stay on top of your finances and ensure that you meet all of your financial obligations. In addition, a professional accountant can help you make better financial decisions, which can ultimately help your business grow.

The Benefits of Hiring a Professional Accountant for Small Businesses

  • Perhaps the biggest benefit is that it can save you time and money. By outsourcing your accounting, you can focus on running your business and leave the financial details to the experts. Why would spend hours doing your own books when an accountant and or bookkeeper know what they are doing and something that may take you days to figure out they will already know what to do.
  • Help you avoid costly mistakes. They can ensure that your financial statements are accurate and up-to-date, which can help you avoid penalties and fines.
  • Help you identify areas where you can save money, such as by reducing your expenses or taking advantage of tax deductions.
  • Provide valuable insights into your business. By keeping your financial data up to date and accurate, an accountant can help you identify trends and make informed decisions about your business. They can also help you develop a financial plan that aligns with your business goals.
  • Help you minimize your tax, with careful tax planning

Steps to Finding the Right Small Business Accountant for Your Needs

  • First, you should determine what services you need. Do you need someone to handle your bookkeeping, tax planning, or financial analysis or everything? Once you have a clear idea of what services you need, you can start looking for potential candidates.
  • Next, you should consider the accountant’s experience and qualifications. Look for someone who has experience working with small businesses in your industry.
  • Do they carry professional indemnity insurance.
  • Are they members of a professional body, so that you have someone to complain to should things go wrong.

It is a little known fact that the terms ‘accountant’ or ‘tax advisor’ are not legally protected in the UK so anyone can set themselves up and call themselves an accountant.

Common Accounting Mistakes Made by Small Businesses

  • Small businesses are prone to making accounting and bookkeeping mistakes. Some of the most common mistakes include failing to keep accurate records, misclassifying expenses, and failing to reconcile accounts. These mistakes can lead to costly penalties and fines. They also increase accounting fees.
  • Failing to register for all the necessary taxes such as VAT or PAYE.
  • Failing to properly track inventory. This can lead to overstocking or understocking, which can ultimately harm your business. A professional accountant can help you avoid these mistakes and ensure that your financial statements are accurate and up-to-date.

There are many accounting software and tools available for small businesses. These tools can help you automate your accounting tasks and streamline your operations. Examples of popular accounting software include Xero and Quickbooks

Conclusion Emphasizing the Importance of Hiring a Professional Accountant for Small Businesses

In conclusion, hiring a professional accountant is one of the most important decisions you will make as a small business owner. By outsourcing your accounting tasks, you can focus on running your business and leave the financial details to the experts. A professional accountant can save you time and money, help you avoid costly mistakes, and provide you with valuable insights into your business.

Discalimer: Paul Stankiewicz is the owner and principal at Paul Marks & Co Chartered Accountants which is the trading name of Paul Marks Ltd a Limited Company registered in England and Wales (registered number 4487645).This article is designed for the information of readers only and is the opinion of the author only. Readers should not act on any of the information contained in this article without seeking professional advice. Nothing in this article constitutes advice, nor does the transmission, downloading or sending of any information or the Material create any contractual relationship. Links to third party websites are provided as a convenience to the reader, Paul Marks Ltd does not control and is not responsible for any of those websites or their content. Paul Stankiewicz and Paul Marks Ltd accepts no liability or responsibility whatsoever for any loss or damage suffered by any user of the information contained on or accessed through this article or the Material downloaded.