Seven reasons why you should talk to an accountant at the earliest possible stages of your business

There are many things to consider when starting a new business – your offering, marketing, sales, premises, staff, a website – just to name a few! Accounting is another crucial element, but unlike most of the other items on the list, filing a set of accounts for your business is a legal requirement. Although you don’t have to work with an accountant in the early stages of your business, there are many advantages of doing so. Below we discuss why your relationship with your accountant can be crucial to the speed of your success:

1. You didn’t go into business to be an accountant

If I asked you what you are most excited about in your business, you probably wouldn’t say “The accounting and bookkeeping”! Additionally, keeping your accounts up-to-date can be time-consuming. Particularly in the early phases, you stand the best chance of success if you dedicate the maximum amount of time to growing your business. By working with an accountant, you no longer have to worry about spending hours on keeping your accounts updated – so let someone who did go into business to be an accountant take care of that for you! Remember! If you’re dealing with one of the owners or directors of that practice, they’re on their own business journey and have insight into how their clients operate, meaning their business experience is almost unrivalled.

2. They can help you with choosing the right business structure

One of the most important things to think about when setting up is the structure of your business. You need to decide whether you will register as self-employed, set up a limited company or form a partnership or LLP (Limited Liability Partnership). There are of course advantages and disadvantages to each option, and the most appropriate option for you and your business greatly depends on your individual circumstances (and those of any business partners). This can be a difficult and complex area to navigate, and the consequences of choosing the wrong business structure can be severe. Partnering with the right firm can save you a huge amount of time and hassle, as they will help you to make the best choice based on your individual requirements.

3. They can help you to navigate the cloud

The accounting industry has changed dramatically in the last 5-10 years. The advent of the cloud and the many software options available mean most small business accounting can now be done online, putting high quality, timely information about the performance of your business at your fingertips. Whilst this leads to increased efficiency and more up-to-date financial information, there is a large (and growing) number of cloud providers, and therefore options, available. As a small business owner you can purchase and use the software directly, but finding the right software and familiarising yourself with it can be challenging and time consuming. A great firm that already uses cloud software with their clients will help you to better navigate the cloud and make better financial decisions based on the real-time financial data available. In addition, they can use their experience with both the software itself and their work with other clients to recommend the software that is most appropriate for your needs and quickly get you up and running with it, saving you large amounts of time and hassle.

4. They can reduce your stress

Anyone who has started a business will tell you that the early days can be highly stressful, particularly when you have several different roles to fill as the business grows. It can be easy for your accounting to slip down the list of priorities, but there are two very serious consequences if you fall behind on your accounts: Firstly, if you miss any of your key accounting deadlines and file your tax return late, the penalties can be instant and quite severe; secondly, it’s very important to have regular, up-to-date visibility on the key numbers in your business – such as sales, overheads, profit and cash flow. Your accountant will help ensure that your financial information is up-to-date, submissions are made before the deadlines and will keep a keen eye on those key numbers, helping you avoid compliance and cash flow issues.

5. They can help you be more efficient & use their experience and insights for your business

A great accountant will not only help you with the basic compliance, they will also have some great ideas for best practice that you can implement from the very beginning. They will be able to use their experience from working with other clients to help you implement ‘best practice’ systems and processes that are both efficient and effective, saving you a huge amount of time and stress from the ‘trial and error’ approach.

6. They can help your business to grow

If customers are the lifeblood of your business, then finance is the beating heart. Partnering with a great accountant will ensure you get set up in the cloud for the basic compliance accounting, as well as giving you a ‘Virtual Finance Director’ by providing you with real-time financial information and advice that both helps you make smarter financial decisions and helps your business to grow. The modern accountant is a lifelong friend to your business offering strategic help, ‘non-exec’ style advice and of course a great network of their own.

7. They help minimise your tax liabilities

All small business owners want to minimise their tax liabilities. However, tax is an extensive and complex area. Without spending a large amount of time familiarising yourself with tax legislation, it can be difficult to ensure you are minimising your tax liabilities every way you can. As well as helping you remain compliant, a good accountant will have a dedicated tax department who will inform you of all of the different ways that you can minimise your tax liabilities.

In summary, when it comes to accounting, there’s no such thing as a one-size-fits-all approach. It can be a complex area to try and navigate alone. Partnering with an excellent accountant from the very beginning will help you to make the right decisions for your business and avoid many mistakes and pitfalls, saving you a large amount of time, money and hassle.