How Accountants Help Small Business to Grow

Small businesses play an important role in the UK economy, driving innovation, creating employment and contributing to economic growth. They are a powerhouse of productivity and employ more people between them than the larger companies combined.

However, small business owners need financial advice and guidance to help them grow. Only the larger medium sized companies can afford an in-house Financial Director. However, every business needs some of this support to help them achieve their goals. This is where the right accountant can make a massive difference.

While every business has an accountant to do their accounts, tax and VAT returns, those looking to grow would benefit from a proactive accountant who can offer more and help them gain a competitive edge.

Let’s look at the ways the right accountant can help you:

Compliance, Minimising Tax and Maximising Profit

Compliance work such as filing self-assessment forms, VAT and tax returns is important and the main reason small companies have an accountant. You need someone reliable who stays on top of the changing tax regulations and files your accounts on time.

The biggest thing most accountant sells on is minimising tax. They do this by identifying tax-saving opportunities, such as reliefs, exemptions, and incentives for individuals and companies.

This is important but how about a proactive accountant who helps you to maximise your profit by minimising your costs and optimising your prices?

Financial Management

Proactive accountants go beyond compliance and help small business owners with managing their finances effectively. They will produce and help you to understand the various financial statements such as your cash flow forecast, profit and loss account and balance sheet.

Using these statements, they can provide insights into cash flow, profitability, and your overall financial health. They can identify areas of improvement and advise on strategies for optimising your business performance. They also aid in budgeting and forecasting enabling you to make informed decisions and set realistic financial goals.

Business Growth and Finance

Small businesses often face challenges when seeking external funding to expand their operations. This could be anything from finding the money to pay for an extra employee to investing in new equipment, machinery or premises.

Proactive accountants act as strategic advisors, assisting small businesses in developing business plans, financial projections, and investment strategies. They provide valuable insights into financial feasibility, market analysis, and risk assessment which are crucial for attracting investors or securing loans.

They can also explore other funding options, such as government grants or venture capital, and help you to secure the finance you need.

Risk Management and Internal Controls

Mitigating risks is vital for small businesses to safeguard their assets, maintain regulatory compliance, and prevent financial losses.

Proactive accountants assist in designing and implementing robust internal control systems that enhance governance and minimise fraud or error risks. They conduct risk assessments, identify vulnerabilities, and recommend appropriate controls and procedures to protect your interests. Through their expertise, accountants help small business owners to establish strong financial foundations which ensures operational resilience and long-term sustainability.

Technology and Digital Transformation

In today's digital era, embracing technology is crucial for every business to remain competitive. Proactive accountants play a pivotal role in guiding small business owners through digital transformation. They can recommend and implement accounting software and cloud-based solutions that streamline financial processes, improve efficiency, and provide real-time insights.

They can also help in leveraging data analytics and business intelligence tools to make data-driven decisions, enhance productivity, and identify growth opportunities.

It is vital that small businesses choose a proactive accountant, if they are to achieve their goals. Many accountants focus solely on compliance work and reducing your tax bill. Proactive accountants play a far more active role in your success.

If you would like a proactive accountant who can help you grow, then please get in touch.