Brought to you by ST Accountancy:
The short answer to this question commonly asked by business owners is yes, every business does need an accountant. But why?
Handling business accounts to the highest standard is something that requires a high degree of care, expertise, and experience. Unfortunately, presuming you have no professional background experience in accountancy, it’s nigh-on impossible to possess that experience on your own. Even one wrong step made with your finances could lead to you being in big trouble with the IRS or HMRC.
Fortunately, an accountant knows exactly what to do to help you with keeping your finances in check. Following are some of the reasons why every business requires a talented accountant.
What an Accountant Can Do for Your Business
An accountant’s responsibilities can be complex to understand, as they are different to a bookkeeper’s or CFO’s. Business owners can often be confused by this, and this leads to conflicting expectations between owner and accountant.
Simply put, an accountant will take the already organized books of your business, including every transaction of every income and expense, and use these books to create detailed financial reports.
These financial reports can make or break your business. For example, if you need a loan to fund a new project, an accountant will have the financial information that you’ll require in order to make this a reality. Tax filings can also be handled by an accountant with the right expertise.
There Are Different Types of Accountants
The ‘accountant’ job role can be considered an umbrella term for what is actually a really diverse range of accounting solutions. From an in-house accountant to an automated system, you don’t have to limit your business to just one type of financial oversight.
Here are some examples of the accountancy you could invest in.
- Dedicated accountant – The more complex and large-scale your finances, the more pressing it becomes to have a full-time, dedicated accountant. A dedicated accountant will be there everyday to answer your questions and queries. In some cases, they might be able to handle the bookkeeping too.
- Outsourced accountant – Presuming your business’s finances are relatively simple, an outsourced accountant can help without giving you the burden of having to pay a full-time employee’s salary. Instead, you hire an accountant on an as-needed basis and pay them an hourly fee.
- Fractional CFO – CFOs are, to a reasonable extent, similar to accountants. They can work both in-house and remotely, create forecasting models, and build a viable budget for your business. However, these are specialized skills, so CFOs will be more expensive to hire in comparison to the usual accountants.
It’s worth bearing in mind that accounting software rules the world at the moment. More and more of accounting is becoming digitized. It’s best to make use of a professional who knows the current software inside and out and who is, therefore, well-prepared to be the most effective accountant for your business.
Look Local for Your Perfect Accountant
If you’re a local business, look for local accountants. For example, if you’re operating across the Ipswich area or even beyond, always look out for the most reputable Ipswich local tax accountants, such as the professionals at ST Accountancy.
Particularly if you’re a business on the smaller side, local accountants tend to be more affordable, accessible, and easier to build a healthy rapport with. You must have a good relationship with your accountant if you want both your business to be successful.
The key is to invest in the services of an accountant who represents the best match for your organization’s circumstances and needs.