It is a common misconception that an accountant is only required by a company to keep the books properly kept up to date and audited, as in truth your average accountant has a lot more to offer than just this single service. Accounting firms offer a plethora of services, which help businesses stay financially organised, tax compliant and ready for expansion. While not every accountant offers every service, they should be viewed as an integral business partner, rather than just the outsourced help for the books.
Operational Bookkeeping and Payroll
Many companies produce fantastic products and offer amazing services, but more often than not, do not have the full financial expertise their company needs. Accountants can help by providing help and guidance on the financial aspects of a successful firm. Not just in maintaining accurate cash flow records, but also creating profit and loss statements which help to break down important areas of a business’s costs and revenue stream. Many companies will also use the accountant for accounts receivable, leaving them to do the invoicing, so the company can focus on its key area of activity. They can be responsible for paying the salaries of employees, plus the other operating costs of the company, something easily managed by firms like Barron and Co accountants in Birmingham.
Business Creation, Development and Valuation
From the formation of a Limited Company, to a company’s planned expansion the Accountant is there to assist. By providing analysis of a company’s revenues and profits from previous years, he can inform you of whether you can afford to take on an expansion, how much it will cost, how long it will take to repay any monies borrowed and if it is actually worth going for at all. Many an aggressive businessman’s plans for massive growth have been curtailed once reality has been explained. When a business wants to take out a loan, the investor will want to understand the value of the company, a process that becomes even more important if the company is involved with a merger or a purchase, where accurate evaluations are required. Remember, the accountant uses not just your data, but that from the industry as well, in their calculations.
Tax Planning and Preparation
This is much more complex than simply filing taxation returns. Your accountant can help you to identify and create the most favourable tax scenarios, through the establishment of various business entities. Estate planning is something every person should think of. To develop the correct mix of business entity creation and family trust establishment, to implement long term strategies that can greatly mitigate subsequent Estate taxes.
Self Employed Taxation
When you are a sole trader or self-employed, you are responsible for organising your own tax returns, known as Self Assessment. As you are entitled to defray certain things against your tax bill, it is essential to make sure you know what you can and cannot claim entitlement to. Many an accountant has saved their client significantly more than the cost of their bill, by reducing the final payments to the Tax man. Your local accountant is much more than he seems and is waiting to help you help yourself.