Every business has essential accounting needs but those who only utilise their accountants for these are missing out. Every accountant can provide bookkeeping services, VAT returns, year-end accounts, self-assessment submissions and payroll services but there is far more value in working with those that provide additional proactive services such as tax, business and budget planning, as well as specialist advice for start-up businesses.
Companies that only use their accountant to work out how much tax they owe are likely to be paying more tax than they need to. Good tax planning can save significant amounts of tax and mean the business has more money to spend on other things. Small considerations such as when to make important purchases and being able to defer paying tax can save money. Spreading business income across family members and using tax-favoured benefit plans and investments can also bring down your tax bill. An accountant experienced in tax planning can find all sorts of ways to keep your tax bill as low as possible.
Business Planning and Budgeting
As it is so tempting to rush into new businesses or get stuck in the rut of doing the same things year-on-year in an established one, business planning is essential. Setting out clear objectives at the beginning of the year can help keep you focused on growing the business rather than being caught up in day-to- day activities and potentially missing growth opportunities. Having an effective business plan can also be very helpful in managing the workforce. Establishing which skills will be needed for the year is important in planning recruitment strategies and delegating tasks so the founders don’t end up doing everything themselves. This kind of proactive rather than reactive working means that cash flow levels remain healthy all year and problems can be identified before they happen while there is still time to seek external help if necessary. Budgeting is particularly useful for identifying where money has to be spent and where it can be saved. This is very important if you tend to impulse buy or spend extra money straight away rather than saving it for essential purchases or growth opportunities. A good accountant can help you make a business plan and stick to it.
Start Up Advice
There are so many pitfalls and mistakes that can finish a small business before it’s really begun, so having an accountant who can help you through the initial stages is vital. Even seemingly small things, like making sure your business is registered properly and you are adhering to all the right rules, regulations and responsibilities, can be problematic if not done correctly from the outset. Finding out where the best funding options are, where you would benefit from outsourcing services and how to go about hiring the best staff are all areas where you could receive helpful advice to give your business the best possible start.
At Approved Accounting we do all the essential accountancy work but we also take great pleasure and pride in helping our clients to thrive through our additional proactive services. Working closely with our clients ensures we understand their needs perfectly and can advise them on how they can grow their business and improve their profitability.