Running a company is the dream of many, one that carries a huge burden of work, especially because as owner or manager, you have to do everything. However, there is one person you cannot do without: the accountant. Your role within a SME is so important, that it is the true cornerstone of any business growth. And that is no exaggeration.
From the beginning of a small business, the tax and financial aspects are some of the most important points in accounting, and require a thorough knowledge of the subject. This is because it is easy to make mistakes when, for example, the payment of taxes comes due, or it is time to analyse and interpret the balance of the company. Therefore, hiring, for example, professional accountants central London offers as strategic allies is essential for sustained growth.
It is understandable that owners or managers want to lower costs by taking charge, on their own, of everything they can. However, the accountant is probably the only person that cannot be absent from any small or medium-sized company, except if it is just beginning. But why?
Know the legal aspects
It is easy to get into trouble with HMRC when you do not have full knowledge of tax issues. For example, accounting dates are specific and, in most cases, strict. Without going any further, each type of business must benefit from a specific tax regime, with its own provisions, rights, duties and even benefits. Therefore, having an accountant as a strategic ally of your company is essential to avoid fines, errors or end up paying more than you should.
Ideally, you and your accountant should function as a solid team, ready to react when necessary.
Know how to interpret finances
We are not saying that you do not know, but your accountant, thanks to their experience and knowledge, is able to “see through the mist” when analysing the accounting of a company and, with it, is able to recommend strategic decisions that favour the growth of your business.
While it is true that the final decisions will always go through you, as owner or administrator, it is the accountant who can interpret the accounting of your company in a clear and forward-looking manner, in order to make intelligent determinations in pursuit of business growth, avoiding unnecessary risks or errors that only experts could detect.
In this sense, good communication between both parties is fundamental, since dialogue and trust are the basis of this relationship.
It will help you optimise your resources
The accountant is a tax expert, so they will know, for example, how to minimise the payment of taxes, something that only true experts know how to achieve. This will avoid problems with HMRC and will allow you to access some benefits – such as the postponement of VAT payment, exclusive for small and medium-sized companies.
A strategic view from the financial perspective will allow you to make the necessary investments at the right times. Thus, your company will grow in a sustained manner without wasting resources. Especially when starting a small or medium business, your accountant is key to sustainably growing the business, and undoubtedly an indispensable advisor.