How Can An Accountant Help Your Small Business?

They can help in more ways than you think.

Small business owners can struggle to understand exactly what benefits an accountant will provide them with. This article explores the main areas where an accountant can help. It includes sections on reducing tax, staying legal and compliant, advising on software and protecting the health of a small business.

Running a small business can be tough — You need to make decisions about every aspect of your work: developing your products or services, marketing, advertising, customer service, financial management and lots more, often on a very limited budget.

Because of this, it’s easy to overlook some of the very valuable advice that an accountant could provide you with, and they’ll often save you a lot more money than you’ll spend on their services. Let’s explore some of the main ways that an accountant can help out your small business, including:

  1. Reducing the amount of tax you need to pay

We’ll discuss each of these in turn.

1. Reducing the amount of tax you need to pay

The main way that an accountant will save you money is by helping you to run your business in the most tax efficient way; they can help by:

  • Advising you on the best structure for your business — Are you going to be a sole trader, be in a partnership, set yourself up as a company or something else? A good small business accountant will know the tax advantages and disadvantages of the main business types and what it means to your bank balance

2. Making sure that you file everything that you need to

aperwork is the bane of every small business owner, and there are several filings every year that we need to make so that we stay compliant and don’t create problems for ourselves! An accountant will let you know exactly what you need to file, with whom and when. They can prepare and check through your paperwork to make sure everything is as it needs to be and make sure that you pay the tax you need to, on time.

3. Advising you on software and other areas

Bookkeeping, invoicing, bank account reconciliation and expenses often take up a great deal of time, but good software and advice can make things much easier.

  • Advice on software — A small business accountant will be aware of lots of different types of accounting software and can advise you on the best type to use for your business. Modern accounting software, especially software that runs online are often very full featured and allow you to complete invoicing, expenses, payroll, profit / loss accounts and balance sheets quickly and easily

4. Helping you with the financial management of your business

  • Financial management, cashflow, what you own and what you owe — These terms can bring small business owners out in a cold sweat! Fortunately, your small business accountant can help you with the financial management of your business.

Of course, there are lots of other areas where an accountant can really help your small business out, but they are well worth the money that you spend on their services. Find a good accountant, and you’ll wonder how you ever managed without one.

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I’m a professional freelance writer, creating content on business, finance, and technology. You can read more in my freelance writing portfolio. Financial editing and proofreading provided by Tara Foss.

Tea-drinking, hat-wearing, game-playing, science-loving, professional-writing, armchair philosopher.

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