Whilst some people think hiring an accountant can be expensive, but we believe that it is expensive NOT to hire an accountant. Finding a good accountant can offer small and medium size companies a great return. Accountants wear many hats, from financial gate keeper, to business analyst and budget forecaster. Here we take a look at 10 reason you should consider hiring an accountant:
1. Expense reduction
A good cost accountant will be able to analyse business data and identify waste in your processes. Some of these wastes will be tangible and others will in intangible, such as inefficiencies. By identifying these, an action plan can be put in place to reduce these, therefore increasing profits.
2. Income boost
In all businesses, cash is king. Accountants can ensure the cash continues to flow into the business by ensuring that invoices are sent and are paid when they are due, by overseeing accounts receivable and improving debt collection. Using the costs of the business, an accountant can also identify products or services where prices need to be increased to ensure this is profitable, or even identify where prices could be reduced to increase your competitiveness in the market to win more business.
3. Jumpstart growth
Once the business is established, the growth rate tends to flatten out. This maybe due to the product reaching market saturation, or a lack of cash to enable investments to allow the business to grow. An accountant can restructure the debt of a company, freeing up cash to enable the relevent investment in plant, property or new product lines and services, enabling the business to continue to grow to it’s full potential.
4. Free up your time
Managers and business owners have enough stress and strain running the business, without the added worry of taxes, compliance, payroll, insurance, leases etc. By hiring an accountant to help with these tasks, the managers and owners are free to grow the business, make the savings, develop new products, which all lead to an increased profitability.
5. Handle tax matters
When your business was small, you may have been able to handle your own quarterly payments and annual filings, but as a company grows, taxes and payroll become much more complex, as there are more variables and applicable regulations. For organisations with an international presence, taxes become even more onerous. Tax accountants keep up with legislative changes and help an organisation remain in compliance. With in-depth knowledge of how to maximise deductions and minimise tax bills, you save money. Hiring a good tax accountant can pay for itself many times over. What’s more, they’re at your side in case of an audit or dispute.
6. Handle compliance
Taxes are not the only aspect of your business that are subject to compliance. Companies big and small face ever increasing compliance requirements from payroll to VAT and money laundering. An accountant can setup a system to ensure full compliance and keep up to date with changing regulation.
7. Create forecasts
An accountant is trained to analyse large data sets and advise senior management what they can expect in the near future. From staffing needs to investment or debt financing, a data backed projection complied by an accountant will enable better decision making, less waste and increased profits.
8. Track returns on investments
Although you may not think it, advertising is an investment. Do you know how much revenue is being generated from this investment? By analysing sales figures and customers, a skilled accountant can calculate how successful your marketing campaign is. With this knowledge, you will not be throwing good money at bad advertising.
9. Hire and train personnel
As your business expands, you will need to add staff to help support your operation. With an accountant being so closly involved with sales, credit control, purchasing and inventory, they are ideally placed to help assist with the recruitment process, and once recruited, they can help train staff with systems and processes.
10. Negotiate with suppliers
A savvy accountant can help get the best deals, by researching potential suppliers, discounts or bulk purchasing. Once the quotes are in, an accountant can form a direct comparison, ensuring that the comparison is apples-to-apples, enabling better decisions to be taken.
As you can see, accountants are not limited to accounts and taxation, and here are Markfield Accountancy, we have experience in all of the above. Call today on 01530 654 540 to discuss how we can help your business.