Top 3 Reasons Why Businesses need Accountants in UK

Many founders of small accounting companies do not know that firms collapse in the first 18 months, a staggering 80 per cent in the UK. One of the main causes is typically poor financial management. In spite of these dire consequences, many company owners go it alone when it comes to handling their properties. Recent research has found that 53% of small business owners don't use an accountant at all. More interestingly, in reality, 27% of these respondents use pen and paper to keep track of their finances.

While we should not assume that these companies are worse off by not employing accountants in London, it is not appropriate to underestimate the breadth of knowledge and experience that an accountant may have. Most individuals at home do not maintain their engines. Instead, they take them to a trained technician who can keep things going smoothly and recognise potential issues. Small companies need almost the same consideration from accountants.

Other than paying returns, accountants do. They will make a thorough review of your finances and create a plan for the year in order to keep your business in a stable, profitable condition. Especially if you have had trouble managing your finances in the past, letting an outsider in on the personal specifics of how your business is run may seem daunting. However, in fact, working with an accountant would help you fulfil your goals and set you up for long-term success.

Here are 3 reasons why hiring an accountant is important for the organisation.

Avoid an audit

A very convincing justification for hiring an accountant is to stop the inevitable audit. Sadly, after these problems have emerged, most people think of an accountant as someone who can resolve them. The key point to remember is that an audit can easily be avoided if you have the advice and recommendations of an accountant all year round.

There are many reasons as to when a corporation gets audited: from too many mistakes in the tax report to being too 'charitable,' to unnecessary write-offs. Think of an accountant who is invested in the company as a long-term associate and cares to make it fiscal healthy.

Get all your deductions

During this stressful tax season, most company owners are frantically worrying about how they can increase their deductions. By the end of the year, however, it is too late to make an impression on it.

An accountant will assist you and advise you on how to make strategic decisions on year-end deductions by conveniently recognising these possible deductions during the year. Most business owners struggle to monitor and pay for factors such as depreciation, out-of-pocket spending and home office space. Don't leave money on the table!

Make real-time decisions

When I meet company owners, they always tell me that they wish they could quickly measure the potential repercussions and effects of buying a major office or hiring more workers. Having an accountant as a financial planner to help you budget and monitor cash flow on a steady basis will help you navigate some real-time hurdles.

You should take a collective approach with your accountant, helping you collectively make decisions based on the latest results, and also take advantage of a consultative arrangement that can help you make informed decisions as you need to make them.