Most of us already have a good inkling of why we need an accountant. The primary reason why businesses require accountancy services is to manage their finances, and this is obvious. At some point, you would need someone to handle your financial records and whatever transactions you have, and you also need someone to effectively deal with your tax returns (especially if you don’t want to be saddled with late fines or penalties due to errors!). But accountants can do so much more, and if you’re wondering what else an accountant can do, here are the top three little-known things an accountant can also do for your business.
- Help you gain better access to financing
There may be various financing options available, particularly for start-up enterprises, but how sure are you that you can successfully acquire them? Many businesses are vying for financing, and competition is made even fiercer by the fact that more lenders are stricter. If you want to gain better access to financing, whether it’s in the form of standard loans or equity financing, an accountant can be your best partner. Firstly, they can help you find the financing that’s most ideal for your enterprise. Secondly, they can help you put together the best application and supporting documents so you can optimise your chances of having a successful application. Thirdly, the fact that you have an accountant in the first place is a good thing because it gives lenders a better impression of your enterprise and its integrity and stability.
- Assist you with forecasting your cash flow
As you may already be aware, good cash flow is imperative for your business – it’s your business’s lifeblood, after all. A lot of businesses have failed simply because their cash flow management was not on-point. But with central London accountants, you can put together a precise yearly cash flow forecast that can help you plan better for whatever emergencies or shortfalls may come. This forecast can also help you determine whether or not you need to raise your equity financing or apply for a loan. With the proper cash flow forecast, you can also set better financial targets and goals to help your future business growth.
- Help and advice for your corporate legal structure
Many business owners are not knowledgeable about the right legal structure for their business – and this is where an accountant’s knowledge can come in as well. Your legal structure will depend on your business’ complexity and what your goals and ambitions are, so it pays to get advice from your accountant in regards to the best corporate legal structure – even before you start dealing with clients or offering your services.
For instance, if you operate as a limited company, you can be more flexible when it comes to giving yourself a salary as well as be more mindful of tax implications. Furthermore, you can make sure that your business is entirely legally separated from yourself so your finances and assets will not be at risk if the business encounters adverse conditions.
Your accountant can be with you throughout every stage or phase of your business, but it’s a good thing to complete your standard bookkeeping tasks on your own so you can have a good idea of your business’ standing as well.