It is not uncommon for small business owners to choose to do their own books instead of having an accountant do it for them. However, although many will think they are saving money by doing this, in the long run they could be losing out on a lot of money and sound business advice.

For our small businesses, this is what Burton Beavan offers and why it’s of importance.

Advice on the legal structure of your business

Different sizes of businesses as measured by turnover are better suited to certain kinds of business structures. You may be a sole trader at the moment but perhaps both you and your business will be financially better off as a limited company.

Sole traders are taxed one way. Limited companies and their directors are taxed another way. By sitting down with your accountant and deciding on the most suitable business structure for your situation, you may end up saving a significant amount of money on taxes.

Over the past few years, the significant personal tax advantages that being paid via a mixture of salary and dividends have been greatly eroded. However, for most companies, a limited company is still the better structure for a variety of different reasons. Let us examine your current situation to give you up-to-date advice together with worked examples for your situation.

Help with your main goals

Your aspirations for your business will change as both you and your business grow. It doesn’t matter if you are just starting up and you’re trying to attract investors or if you have been running your business for many years and it is time to sell it on to somebody else.

You should always be aiming for something. A businessperson without target hits nothing, to paraphrase that well-known cliché. Your accountant can help you create a business plan for getting a loan or finding investors.

If you’re selling up, they will help you prepare all of the documents that you may need for the due diligence process. The quality and timeliness of documentation your accountant will produce during the sales process has a direct effect on the price you receive for your company.

Organising your time effectively

The more responsibility that your accountant takes on, the more time you can spend focusing on other important tasks in running your business.

You’ll now be delegating important tasks like managing your personal and company finances and filling out your tax returns to a certified professional. Not only does this mean that they will be done promptly and properly but it also means that you have more time in your day to sell, to look after customers, and to seek out new opportunities to make money.

Help you see the bigger picture

An accountant is more than a number-cruncher – an accountant is a barometer of the wider economy in both the macro and micro sense.

Accountants will have dozens or hundreds of different types of business as their clients. They’re able to see through feedback from clients (both verbal and via online bookkeeping) the general direction of their client base – is there growth out there or are companies tightening their belts?

At the same time, your accountant will know your business individually and how it’s performing. With that knowledge, they can give you advice on your company, how it’s doing right now, and how you’re doing in comparison to their other clients. Even if there is cash there to expand right now in your business, your accountant can alert you to the general level of confidence in the economy which will help your decision-making process on your future direction.

We can help

Talk to an accountant – find out exactly what one can do for you. Call us on 01606 333 900 or email us at hello@burtonbeavan.co.uk.