You can do your accounting if you’re a sole-trader or self-employed in your limited company because you won’t deal that much with complex transactions. All your financial activity will be probably limited to simple bookkeeping and tax filings. It’s a good idea to consider getting help with some of your financial operations, such as Self Assessment filings from an accountant, even if you’re working solo.
Hiring or outsourcing an accountant will save you a great time dealing with bookkeeping and financial transactions and help you focus more on the growth of your business. It might even help you grow faster. Your accountant might be responsible for running all your financial operations like a CFO or just a part of them. It depends on facts such as your priorities, your business goals, and your business structure.
The Importance Of Accounting Services For Your Small Business
Accounting includes tax & compliance, bookkeeping, cash flow, invoices, expenses, profit & loss, etc. You won’t probably have time to learn tax laws, calculate how you can benefit from tax deductions and savings while you’re focusing on growing your business. However, the know-how of a professional accountant can save you time and money.
You can keep all your transactions, profit & loss, purchases, receipts, and invoices in order. That might also help you establish a better growth strategy for your company. You can even have some financial advice from your accountant, which can make your business more profitable. An Accountant can also help you prepare for investments, whether from a bank loan, angel investor, or other types of private and crowdfunding.
When Do You Need An Accountant For Your Business?
You should start working with an accountant as soon as possible if you want your business to grow efficiently. You don’t have to employ or hire a full-time accountant to help you with business planning, company formation, tax investigation and filings, or business loan applications. Instead, you can work with accountants or accounting firms on hourly or fixed rates for specific tasks.
It might seem unnecessary to have an accountant if you’re running a small business because modern cloud-based accounting software make running financial operations alone easier. Even though, if you’re planning to do that, we recommend you consult an accountant before picking an accounting software. You need the know-how and services of an accountant when you
- need to write a business plan
- have to deal with government bureaucracy
- have a tax investigation
- apply for a loan
- buy/sell businesses
- prepare for a funding round
Of course, the list is not limited to these. Having an accountant in every phase of your journey has its perks, but you should consider your budget, too.
Things To Consider When Hiring An Accountant
You should be careful of a few things about your business and the qualification of the accountant you’ll choose. Of course, your business objectives and budget will be two of the decisive factors. Also, working with an accountant who has knowledge and experience in your area of trade is a plus. They will understand how much time they will need for your operations so that they might offer you customised services and prices depending on the needs of your business. That’s why make sure you had a background check on people to see how much time they spent in the business and their references.
You must trust your accountant as you will give them control of your most precious and confidential information. Check if your accountant’s past business relationships were long-lasting. Contact their previous partners and employers to get feedback if you can.
Sometimes accounting software companies partner with accountants or accounting firms. You can look for business partners on their websites. You can feel more confident if you know that the accounting firm is somehow recognised in the market.
Last but not least, check if your accountant is a chartered accountant (CA or ACA), which means they are certified to offer services such as tax filings, financial audits, and financial advisory.
By “the best,” we mean “the best for your business needs.” We will state the obvious first: Google it and narrow your search results with the location. You can start by checking the candidates in Google Ads results. You can optimise the research process by trying different keyword combinations. You can also use Google Maps to check accountants and accounting firm offices in specific areas.
You can contact chartered accountant professional bodies to get more information and support picking an accountant for your company. There are six professional bodies recognized by the Financial Reporting Council (FRS) that are
- Association of Chartered Certified Accountants (ACCA)
- Chartered Accountants Ireland (CAI)
- Chartered Institute of Management Accountants (CIMA)
- Chartered Institute of Public Finance and Accountancy (CIPFA)
- Institute of Chartered Accountants in England and Wales (ICAEW)
- Institute of Chartered Accountants of Scotland (ICAS)
Don’t rush the process; try to contact as many accountants as possible because they will be the persons you want them to keep your books and run your financial operations for a long time.