The Role of Small Business Accountants in the UK: What Services Do They Offer?

Small Business Accountants are great at having a vision and doing what they do best. It does not matter whether it’s a family business, a restaurant, or even a medical practice. In fact, one of the smartest expenses that you can have is to incur, no matter what your size is. 

The services these people offer might or might not appear to you as a need. However, it is a good idea not to fall afoul of the law. 

However, when it comes to running a business, business owners usually need help in this domain. It can be because it’s administrative tasks or creating a business plan and paying the right amount of tax thanks to a Small Business Accountant.

Let’s face it, running a business is time-consuming. Thus, outsourcing your business finances to a Small Business Accountant might make the difference. This can be the difference between being in the red and way over your head versus being in the black and financially sound.

An experienced Small Business Accountant will do more than save you time. They can also help you comply with regulations, save you money, and help you plan for the future.

Since Small Business Accountants offer a range of accounting and tax services. These can positively affect your business. This post will dive into the role of a small business accountant.

Now when we decided to hire an accountant to look after the books. It was not a game. The idea that a small business should have to bear this is one that not many people are going to be fond of. However, when we look at it, the penalties result from the misuse and abuse of the tax code. These are going to be so much higher and worse. This, in fact, is the reason that it is a smart and wise idea to make sure that you are one step ahead of the law. 

Build your business

Since your business is as unique as yours and every situation you face will be different. You need to have a solid foundation is crucial. This is where a Small Business Accountant comes in to assist you with business planning.

A Small Business Accountant will help you understand the financial challenges you’re likely to face. This will help you plan to achieve your business goals.

They can write your business plan. They will advise you on your business structure (e.g., limited company, sole trader, partnership), and hone in on your target market. Moreover, help you develop your business model. These include identifying revenue sources and how your business will operate.

On top of that, a business plan with a Chartered Accountant’s approval attached to it will appeal to investors. This means you can secure a business loan or fund more easily.

Pay and even save on your taxes

Owning a business and paying taxes can be complicated. You don’t want to end up in hot water with HMRC. This happens when making an error related to Value Added Tax (VAT). These errors, if allowed to pile on. They can in fact, result in Bailiffs being sent to your door in the worst-case situations. People can end up in jail because ignorance of the law is not an excuse for having violated it. 

While accounting software can make things easier so that you can easily submit Value Added Tax returns. You have to do it every quarter to HMRC. However, mistakes can still happen. For instance, you might need to maintain financial records better. You might omit sales from your VAT returns or make a late payment.

Penalties can range from a lower end of 5 percent but are usually far higher. Usually in fact, a fifteen percent penalty is quite common for not properly registering your business for VAT on time. The charges go to £400 if you submit a return by paper instead of digitally. Now these and other tips and tricks are not going to be known to anyone other than someone who is trained in the science of accounting and finance. 

With the help of a Small Business Accountant, tax filing does not have to be a pain for you. Also, it can be overwhelming as to knock you out and bog you down in tasks that are best left to a specialist. You need someone who knows these things. Instead, they can confidently calculate your business expenses and allowances. They can ensure you remain compliant with financial regulations by paying the right taxes on time.

A Small Business Accountant can also help with tax savings. This is by lowering your tax exposure, helping you handle old tax debts. Also, rectifying poor record keeping with expert bookkeeping.

One of the reasons why people make billions and get away with tax avoidance is because they know how to game the system. This is done by hiring the right accountant. The accountant is who keeps them out of jail and their money in their bank accounts.

Now this is something that can be done by anyone. In fact, the biggest payers of tax are small and medium-sized businesses rather than giant international enterprises. The reason is simple: they are just smarter at skirting the system and know how best to dodge the taxman. This is something that a lot of us have grown up having funny feelings for. However, at the end of the day, the most important thing is to make sure that we make money. 

Set up your business accounting software with the help of a Small Business Accountant.

Having an accounting software integration that’s HMRC compliant to send tax returns is only one of the reasons why it’s important to set up cloud accounting software. The best Small Business Accountant will help you manage business income and expenses, send invoices and generate financial reports about your business.

Since accounting software is connected through your business bank account, you get updated information in real-time to reconcile financial statements and eliminate the need to input this information manually. Other features include online invoicing, automatic payments, and friendly reminders for unpaid invoices.

Of course, business accounting software is no substitute for a Small Business Accountant, for their training and expertise will find savings no software can. However, accounting software will save you and your Small Business Accountants time. They can access your information instantaneously and see where your business stands.

Fix your cash flow

We’ve talked about cash flow a lot, but that’s for a good reason: bad cash flow management is one of the top reasons why businesses fail. Cash flow is always important, especially during challenging times with skyrocketing inflation and a looming recession.

Cash flow is crucial because it allows you to pay suppliers and employees on time, seize new opportunities for business growth, and give you more negotiating power since you can pay upfront.

The best small business cash flow management strategy is to hire a Small Business Accountant. They can help you analyze your current cash flow, create cash flow forecasts so you know what to expect during slower months, get a clear picture of the effect of planned business changes, and identify ways to get paid faster.

They’ll also set you up with the best cash flow apps and organize cash reserves to ensure you always have money in your business bank account.

Act as a business advisor

Small Business Accountants will not only help you navigate the startup phase of your business and the ongoing financial management, but they will also help you with future growth. This can be especially beneficial when the growth comes about suddenly, and now you have cash flow difficulties, have to hire staff and get a new office space.

Expert Small Business Accountants will help you navigate this unexpected influx. For example, they can offer professional advice on the right type of staff to hire, from the cost of hiring, training, and paying an employee and ensuring you can keep this person on your roster to helping you with payroll.

While this sudden growth can be jarring, a Small Business Accountant can help you manage things quickly and efficiently, so you can easily scale your business.

Small Business Accountants handle more than taxes.

When it comes to owning a business, it’s a rollercoaster ride. Better to have a Small Business Accountant that can help you ride out the highs and lows. While they help you with taxes, Small Business Accountants also assist with building your business, setting you up with the right accounting software, managing your cash flow, and turning your business ideas into reality.

Take your business to the next level with a small Business Accountant.

Before a recession or worldwide crisis hits, get the help you need now. Whether it’s to manage your business’s finances or grow it, start by requesting a consultation from one of our London Small Business Accountants. Having the right support will make all the difference for 2023 and beyond.

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