As much as 70% of small businesses (accounts for 99.96% of all businesses) in the UK do not opt for an accountant to help them out.
Guess what?
Account to Fundera, 30% of small businesses with an account perform better than 70% of small businesses that don’t have an accountant. This is because they have a more streamlined system, have better access to financial information, have more organizational productivity, increase data security, and are cost-effective.
In fact, small businesses with an account save on average £8000 more than those that don’t have an accountant.
For instance, take the 2020 Small Business Report report based on 1000 subjects in the UK. It found that almost 73% of small businesses with an accountant said their accountant’s advice was critical for claiming subsidies.
This is not a mere opinion. These are facts. So, it’s better not to dwell on why you need an accountant question.
Still, if you are having a hard time with the why question; here are simple reasons why your small businesses need expert accounting firms like chartered accountants Edinburgh:
- To find the best business structure
- Financial analysis of your business
- Advice on the software to use
- Ensure cash flow
- Prepare documents for business loans
- Tracking expenses
- And tax services
And these are benefits that are the ones that are on the surface. There are many underlying benefits of accountants that would take pages to fill and enumerate in detail.
That said, now let’s move on to the important part: how do you find an accountant for your small business.
How do you find a business accountant?
While the suggested tips might take some of your time, you’ll benefit once you find the perfect accountant for your business using these tips:
Referrals – consult others’ business.
The first and foremost thing to do while finding the right accountant is to ask other firms. You can easily find an account nearby you, too — a good one if you ask the businesses nearby you about their accountants.
The best thing is to call businesses that operate in the same industry and ask them about their account information. But don’t forget to ask whether they can represent your sector or not. Accounts work independently. So, most businesses will provide you with the information quickly.
Once you create the shortlist. You can contact the accountants and review whether they will be suitable for managing the accounts of your business or not.
And in case that proves fruitless, you can always turn up to the internet or yellow pages to locate the most suitable accountant for your business.
Call the accountant individually
Once you have a shortlist of the best suitable accountant for your business, call the accountants individually. Ensure to prepare some questions beforehand that verify whether the accountant could handle your business or not.
For instance, if you are running an online business, your questions should revolve around eCommerce. On the other hand, if you are running a business that involves international groups, you will have to consider an accountant that knows about international taxation.
If your business is involved in export or import, choose an accountant who could provide the best strategy to manage the business.
Ask the shortlisted accountants to come in for a meeting
Once you have decided the best suitable candidates for your business, ask them to meet one in one. This will be best to figure out whether the accountant cares for your business or not.
Moreover, you will not only assess the accountant’s abilities in person. But also you can figure out whether you are comfortable with the person or not. Because if you are not comfortable with someone, the chances are they are not comfortable with your either. So, it is best not to go with the candidates you are uncomfortable with.
Which mistakes to avoid when choosing an accountant?
Just like the do’s, you also have the don’ts:
Do not assume all accountants are the same.
Every company is different from the other. So are the accountants. As a small business owner, you should look for accountants who have good experience with small business environments.
Do not choose an inexperienced accountant.
One of the biggest mistakes that business owners make is to hire an inexperienced accountant for the sake of saving some payrolls. Believe me; businesses are better-paying money to the accountants a large sum than to choose an inexperienced one. The reason is simple: the experienced accountants will pay for themselves and add some funds to your pocket. Good accountants with experience know numbers. And they play with it to save you money.
Do not choose an accountant that doesn’t represent your sector.
An accountant should be knowledgeable about the industry you operate in. That is the only you can save money because of their expertise.
Do not choose the cheapest accountant.
Again, pay more to save more. The cheapest accountant is the inexperienced ones.
They do not understand the trades that well.
And that is the reason they take a lower pay cut. So, no matter what, please don’t mistake choosing an accountant because of their lesser paycheck demand.
Conclusion,
One of the biggest challenges of small businesses is ensuring cash flow. Yes, almost 70% of small businesses face cash flow problems within the first year of operation.
And in that regard, an accountant could go a long way.
