What does an accountant do? Sounds like a silly question to ask, but many people are unsure of what an accountant can do for you.
An accountant’s core responsibilities are typical to prepare and examine financial records. Making sure their clients’ records are compliant and meet any statutory requirements. They can act for individuals and companies. To be a certified accountant takes years of study and examinations. Keeping up with current legislation is also a key part of their role.
Hiring a chartered accountant comes with all sorts of benefits, not just filing your annual accounts. A chartered accountant can be a real asset to your business and its growth. They can help you with monitoring your expenditure, planning and forecasting, even helping you secure finance.
So, as a business owner, it might seem like a business expense you can trim down. However, if your accountant is able to increase your profit and save you tax they are worth their weight in gold!
Tax return and filing accounts with Companies House
This is the basics of what your accountant can do for you. Getting your annual accounts completed and compliant for you, in the most tax-efficient way possible. They will then file your tax return and accounts on your behalf to the relevant authorities.
Bookkeeping
Regardless of the size of your business, it is a legal requirement for you to keep a record of your sales, expenses and purchases. Failure to do so can be a fine of up to £3,000. Your accountant can offer as little or as much support with your bookkeeping as you need. If you haven’t got the time or don’t fully understand the best way to keep your records, having your accountant do this for you is the best way to make sure you stay within the law.
Having your accountant do your bookkeeping for you will also allow them to keep track of your finances throughout the year. This means that you know how your business is doing on a month to month basis.
Payroll
Having your accountant perform your payroll duties can be such a relief if you’re not sure what you’re doing. Payroll support will give you peace of mind that the employees that keep your business running are paid properly and on time. Also, details such as PAYE and submitting RTI (real-time information) to HMRC is fully covered.
With an experienced secretarial service, you can be confident that you are fully compliant with all aspects of companies law. With the rollout of the compulsory workplace pension scheme, you can get clear advice and guidance about the most effective ways to implement this for your team.
Here are a few extras that your accountant can do for you.
Management Reports
Management reports are a type of financial report, providing insight on the financial performance of your business. They’re called management reports because they are typically used by business owners or management to inform strategic decision making.
The benefits of producing management reports are so that you can monitor growth, plan for the future, motivate for funding and optimize your processes.
Your accountant can provide these to you on a monthly or quarterly basis. You can then accurately gauge how well you are doing and make timely decisions.
This leads on to another service your accountant can provide which is planning & forecasting.
Planning & Forecasting
This is a really important feature that a chartered accountant can help you with. If you are set on growing your business and turning a profit. Then sitting down with your account to plan your business strategy can be a great help.
We all have goals for the future, but what practical steps can you take to drive your business forward? By using real data from your current position and your accountant’s expertise and experience. You can identify new opportunities, maximise funding and outline a clear path for the future of your business.
Grant applications
This might not be something that you would consider your accountant to help you with. Most firms will provide you with advice for grant or loan applications.
You can sit down with your accountant and they can help identify sources of funding and offer support when it comes to completing grant applications. This in turn can help you seize opportunities and take bigger steps towards your goals.
So, if you thought all your accountant did was tax return and accounts, think again! Don’t be afraid to ask for advice and help with your business. Take advantage of those extra services to push your business forward in the most tax-efficient way.
If you need help to grow your business or keep track of your numbers, give us a call today, or book an appointment.