The legal requirements
Let’s start by looking at the legal requirements. In England, there’s no legal requirement for sole traders, partnerships, or limited companies to use an accountant. However, you do have to meet legal obligations such as record-keeping and tax filing.
If you are confident in your ability to comply with recordkeeping, tax return filing, and payment deadlines, that you understand complex tax law, and if relevant payroll obligations, then the answer is probably, no you don’t need an accountant.
However, if you aren’t confident in all these points then at the very least you need to speak to an accountant and find out how they can help you.
What’s your time worth?
Starting a new, or growing an existing, business takes time, energy, and commitment. You will likely be spinning lots of plates as you build your client base, market your services, maintain stock levels and manage suppliers. That’s without even thinking about the actual product or service your business provides.
Assuming you, like most small businesses, started your business to do less of the jobs you didn’t enjoy when you were employed, you need to be disciplined about how you spend your time.
Ask yourself this question:
What holds more value to the growth of your business an hour serving customers or an hour doing the books?
How’s your self-discipline?
So, let’s assume you are confident in your ability to maintain your records and meet legal obligations. You’re also sure that bookkeeping and tax return filing, payroll submissions and auto enrolment administration are the best way to use your time.
Let’s consider your self-discipline.
Are you the kind of person who can’t leave the last biscuit in the packet?
Or who doesn’t understand the concept of resealable chocolate bags?
Maybe you’re easily distracted from chores by the newest Netflix series?
Or do you delay doing your admin in favour of meeting friends?
If any of these examples remotely resonate with you, consider this;
Will you really sit down to do your bookkeeping and accounts after a full-on busy day at work or would you rather spend time with friends, family, or the cat?
Maintaining your own business accounts takes time and discipline. In fact, underestimating both of these is the most common reason new clients seek our help.
If you’re thinking maybe using an accountant is a good idea, you may be thinking, “Can I afford an accountant?”
How much does an accountant cost?
Accountants have a reputation for being expensive. However, the question you should really be asking is; what value will the right accountant add to your business?
The fact is, a good accountant who ‘knows their onions’ will add enormous value to your business by:
- Managing your cash flow
- Planning sustainable business growth
- Maximising tax efficiencies and savings
- Reducing debtor days
- Reducing duplication of work
- Advising on growth strategies
- Keeping your business compliant
- Helping you with budgeting
- Supporting your procurement processes
- Providing financial reports to your management team or investors
- Implementing efficient systems
- Reducing business running costs
A client case study
At Accountancy Solutions, the team is dedicated to making every client’s business as efficient and profitable that it can be.
Over the course of five years one of our clients achieved:
- Turnover increase from £15m to £20m
- Net profit increase from £750,000 to £2.5m.
- A 12 fold reduction in data entry duplication
- Increased stock control
- Reduced stock losses
- Reduced production time of management accounts from 6 weeks to 7 days
- Reduced administration costs by £120,000 year on year
- And, they cleared a whole mezzanine floor that had been needed just to store their paperwork!
These savings didn’t mean job losses. It meant that staff could be allocated to work that helped generate more income for the business and further improved performance and profitability.
We don’t just help multi million-pound businesses
At Accountancy Solutions we are dedicated to providing accessible and affordable accounting solutions for businesses of all sizes and budgets, offering accountancy support packages from just £250 per month.
For more details about how we can help you grow a profitable and sustainable business, contact firstname.lastname@example.org or phone 01962 462007.