{"id":2401,"date":"2021-04-08T18:22:48","date_gmt":"2021-04-08T17:22:48","guid":{"rendered":"https:\/\/kirkwoodwilson.co.uk\/?p=2401"},"modified":"2024-01-18T20:16:17","modified_gmt":"2024-01-18T20:16:17","slug":"why-your-small-business-needs-an-accountant","status":"publish","type":"post","link":"https:\/\/kirkwoodwilson.co.uk\/why-your-small-business-needs-an-accountant\/","title":{"rendered":"Why your small business needs an accountant"},"content":{"rendered":"\r\n
You might be mistaken into thinking that as a small business, you are able to manage your own accounting and bookkeeping. However, as with any business, whether small or a start-up, the aim is always to grow. By enlisting an accountant, you can focus on the growth of your business whilst they handle all the paperwork. Read on to find out more about why your small business needs an accountant.<\/em><\/p>\r\n\r\n\r\n\r\n Of the 5.5million registered businesses in the UK, over 99% of them are classified as a small to medium-sized business. These small businesses and start-ups cover a whole range of useful and luxury goods, or services and experiences. However, small businesses have a number of defining characteristics that help to identify them as a small business.\u00a0<\/p>\r\n\r\n\r\n\r\n To be legally identified as a small business, your organisation must consist of less than 50 employees, with a turnover of less than \u00a310,000,000 annually. A micro business is a little bit smaller than that, with less than 10 employees and a turnover of less than \u00a32,000,000 annually.\u00a0<\/p>\r\n\r\n\r\n\r\n In the UK, company accounts must be submitted to Companies House<\/a> every single year, regardless of whether your company has been active or dormant in the last 12 months. Your accounts must be registered with Companies House within 9 months of the last Accounting Reference Date, also known as the ARD. This is usually the anniversary of the last calendar day of the month your company was registered. So, for example, if your business was registered with Companies House in January, your accounts must be filed with Companies House in the following September.\u00a0<\/p>\r\n\r\n\r\n\r\n If you run a small business, or you are self-employed, an accountant can bring considerable advantages. We\u2019ve listed a few of the top ones below.\u00a0<\/p>\r\n\r\n\r\n\r\n As a small business, your aim is likely to be that you want to grow your business sustainably. By hiring an accountant, they will be on hand to help you handle these growth transitions, such as hiring new employees or moving to new locations. Your small business accountant will be on hand to look after the finer details of your businesses growth, such as payroll, employee tax management, property taxes, utilities and so much more. This frees up a considerable amount of your time to run your business.<\/p>\r\n\r\n\r\n\r\n The old saying goes, \u201ccash is king\u201d and in business, this couldn\u2019t be any more true. Cash is the fuel that will keep your business running and without proper control of your cash flow, you cannot make the critical business decisions necessary to keep your business running.\u00a0<\/p>\r\n\r\n\r\n\r\n Having a good small business on hand will help you to ensure that you have good credit control and cash management policies. For example, say your business offers services or goods on a 30-day payment term. By hiring an accountant, they can work to keep your business on top of your finances and ensure that you have good credit control with your customers paying on time.\u00a0<\/p>\r\n\r\n\r\n\r\n Understandably, you will want to focus your time on the day to day running of your business rather than spending your precious time and resources on bookkeeping and compliance. This is where an accountant comes in handy.<\/p>\r\n\r\n\r\n\r\nWhat do we mean by small business?<\/h2>\r\n\r\n\r\n\r\n
What a small business accountant can do for your business<\/strong><\/h2>\r\n\r\n\r\n\r\n
An accountant helps you handle growth<\/strong><\/h3>\r\n\r\n\r\n\r\n
To improve your cash flows<\/strong><\/h3>\r\n\r\n\r\n\r\n
Reduce your workload<\/strong><\/h3>\r\n\r\n\r\n\r\n