Still not using an outside accountant for your small business? Here’s why you should
Doing all the accounting for your small business yourself can be a significant drain on your time and your resources. If you actively enjoy doing the sums yourself that's one thing, but if you're taking on your own accounting as a way to simply save money, then it may be time to reconsider.
More than half
A survey conducted by SAGE of owners of small businesses found that over half (55% percent) stated that they believed the outside accounting services they used were absolutely 'critical' to ensuring that their business was a success. On top of that, over 70% of respondents said that they used accountants to handle all of their accounting needs, including tax returns and payroll.
Getting help early
The same survey found that just over half of the business owners decided to hire outside accounting help either when they initially started the business or within six months of launching. With the initial six months so vital in determining whether a small business succeeds or fails, business owners who hired an accountant stated that they were able to focus their attentions elsewhere, meaning they could look at ways to grow the business safe in the knowledge that their accounts were in capable hands.
The most common reason given in the survey for not hiring outside accounting services was that the business owners preferred to handle everything themselves. This may be down to trust, or the owners believing that they are retaining full control simply by not calling in for help. With professional chartered accountants able to offer help and advice as well as carrying out accounting tasks, however, the survey clearly found that accountancy was one key area where it pays to hire a professional.
Good advice could actually help give your business the edge over your competition, particularly for small companies and startups. Accountants with experience of working with small scale businesses know that they differ greatly from large corporations so are able to tailor their assistance to suit the needs of the business. Every small business and startup is different, so the tax advice received will specifically apply to the current situation of your company. You may be eligible for certain tax breaks or an industry grant that you are unaware of, for example, so having an outside accountant as part of your team could prove extremely lucrative and make the money saved on not hiring outside help seem insignificant.
If you're based in Sussex and need help with your accounts, get in touch with us today.
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