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What is the role of a small business accountant?

'open' sign hung on the front door of a small business

Small business owners are often very passionate about their enterprise, and can often be found guilty of trying to do it all themselves. One thing that is imperative, especially if you are in the early stages of business ownership, is hiring someone to look after your finances in order to minimise risk and manage the growth of your business.

Accounting tasks such as payroll processing and improving cash flow are crucial, and if left to fall by the wayside, can result in the failure of a business.

This is where a small business accountant can help. One of the wisest financial decisions a small business owner can make is to hire an accountant. They can assist you with much more than just managing your finances; they offer advice, make recommendations, and even put systems and software into place to make sure that your accounts stay up-to-date with the latest regulations.

In this blog post, we will be looking at the role of a small business accountant, and what they can offer your business to help you achieve your goals.

1. They can keep you informed of current legislation

As a small business owner, it can be difficult to keep on top of the latest legislative changes that could impact how you manage your finances.

It is an accountant’s job to keep you well-informed of the fluctuating rules around tax, such as digital VAT returns, changes to customs duties and any increases to minimum wages.

A professional accountant will be able to offer advice on how to manage these changes and what they mean for your business finances.

2. They will provide a professional bookkeeping service

Given the time and effort it takes to complete, recording and reporting financial information can be a daunting task for small business owners. If you are unfamiliar with the principles of bookkeeping, a small business accountant can assist you.

An accountant’s bookkeeping services will cover the company's day-to-day finances so you don't have to, allowing you to concentrate on your customers and running your business. Bookkeeping services include managing all of your payments, meeting deadlines, producing monthly reports, keeping tabs on expenses, and organising your bank statements and invoices.

woman using a calculator to work out a tax bill

3. They can help you with your cash flow management

Effective cash flow management is essential for the success of any business. One of the key factors contributing to business failure is poor cash flow management. It's an essential component of running a business because it enables you to pay suppliers and employees on time, opens new doors for business expansion, and offers you more negotiating leverage with both suppliers and investors.

A small business accountant can assist you in improving your cash flow by identifying and reducing expenses, making sure you are taking full advantage of tax relief opportunities, devoting time to researching potential additional funding sources for your business, using data to produce financial forecasts, and staying on top of your company's books.

4. They will help you with your business taxes

As a busy small business owner, one missed tax date could put your company in trouble and leave you with the consequence of expensive penalties.

A professional accountant can help make sure that you never miss an approaching payment. Their responsibility as a small business accountant is to make sure you continue to adhere to financial rules and make on-time, correct payments.

Additionally, they can confidently identify legitimate tax-efficient strategies, such as using government incentives and allowances to help lower your tax burden.

5. They can help you with your future growth

In addition to providing ongoing financial management, a small business accountant can support your business’s future growth. When a business experiences a period of unexpected growth, it can be very helpful to have a professional accountant on hand to guide you through the process.

An accountant can help you plan to maximise the profitability of your business and make sure you are taking all the necessary steps to achieve your business's overall goals. This includes everything from detecting trends in your sector to offering investment advice.

Choosing One Two One Accounts

Here at One Two One Accounts, we have helped many small businesses across the North East manage their accounts successfully and effectively.

Being a fully accredited accountancy firm with 15 years of experience in the sector, we are well-placed to support your small business with tailored accounting services.

Get in touch with us today to learn more about our professional accounting services.


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