We understand that, for small businesses, spending your money wisely is always top of the priority list – and sometimes it can seem more cost-effective to carry out business-related tasks yourself rather than pay for an external expert. And in the case of looking after the business finances – well, it’s pretty simple to keep a track on what’s owing and what’s due in, right? Wrong.
If that sounds typical of your business, then it’s time to think again – spending a little of your business income on a book-keeper or accountant will actually save your business money – and far more than you think. Here’s why every small business should make the smart choice and look to the experts when it comes to managing money matters and accounting software.
When it comes to the taxman, there’ll be no nasty surprises
Do you know how much tax you’ll be liable for at the end of the tax year? – and will you have reserved sufficient funds to cover your tax bill? Whether you’re a sole trader, partnership or limited company, your tax obligations and tax allowances can be complex. With an accountant on board, they’ll be able to advise you of the latest tax laws and how to operate your business more tax-efficiently – often saving you significant amounts off that year end bill. Not only that – with financial tax guidance and use of accruals on your accounting software, you can put enough by each month to make sure your business doesn’t take a cashflow hit come year end.
Talking of cashflow – be proactive, not reactive
With a book-keeper at hand managing your accounts with accounting software, you’ll know at any given moment exactly how much you owe and how much is due to you – meaning you can plan your cashflow more effectively. Many book-keepers will also carry out invoicing and credit control duties for you, meaning that you can concentrate upon running your business whilst an expert helps you reduce your debtor days. When you’re wearing several hats it’s all too easy to put debt-collecting to the back of the queue, so with your credit controller actively managing your cashflow, your bank balance will look healthier – and your bank manager happier.
How’s your business doing? Can you name your profit margin?
A good book-keeper or accountant isn’t just invaluable in managing your receipts and keeping your accounting software up to date – they’ll be able to provide you with accurate advice on how your business is really performing and how to help improve that bottom line. Without professional financial guidance, it’s all too easy for business efficiency to slip and overheads to creep up – so it’s a wise move to make sure you have a trusted professional to keep a close eye on your business performance and who can give practical, proven advice on how to keep your business running at maximum performance.
And finally…. it’s a matter of horses for courses
If you’re a business owner who currently manages your own accounts, unless you’re an accountant yourself then you’ll be all too familiar with this scenario. Sitting in the office until late at night, ploughing through spreadsheets or unfamiliar accounting software, checking and re-checking those figures which you’re still not sure are right…. we’re sure you’ve been there. If you counted the actual cost of the time you’ve laboriously spent trying to figure out your accounts, you’d probably be in for a nasty surprise – and the small monthly cost of hiring a book-keeper starts to show itself as a cost-saving from the off. Why spend many hours of your valuable time stressing over your accounts when a professional could have it done in a fraction of the time?
When you look at the evidence, isn’t it time you reached for phone and called that book-keeper or accountant who you once thought might be a waste of money? It just might be the smartest business decision you make all year.
If you are considering hiring a bookkeeper or accountant but fear that you will lose control of your accounts and where your business stands then fear not, online accounting software will enable you to logon at anytime and from any location and keep an eye on who owes your business money, what money you have in the bank and print of financial reports as and when you need to. This will provide you with a win win situation.