When starting your own business or company, you should be looking to get your financials in place to provide you with the firm foundation you need to launch your startup. Using the services of a professional accountant can put you in the best position for subsequent growth and development as well as improved logistics on a day to day basis.
Why Outsource Your Accounting?
Despite the economic aftershock of lockdown, and the onset of recession, there are still plenty of business opportunities for ambitious, dynamic startups. Certain sectors will have to adapt, but in so doing, they will also need new forms of technology to adjust to demand.
Consequently, for many tech-based startups, the pace of business development is still quite rapid, and the competition fierce.
But where startups do experience accelerated growth, they may find they have not had the time to address certain business fundamentals, such as accounting.
An important aspect of business strategy is knowing when to outsource certain essentials, to make sure you don’t lose control of the things that help power your startup.
Having the dedicated support of a professional accountant offers several crucial benefits, including:
- Accounting and bookkeeping expertise
- Tax advice
- Auditing
- Business insight
- Management accounts
You might consider your core business to fall outside the accounting remit, but ensuring robust accounting and bookkeeping are core requirements if you want to keep your startup business on track.
A professional accounting service can help you set up the essential financial systems your business needs running on its behalf.
An accountant will be able to spot issues in advance, such as obstacles to cash-flow, and act on them before they have an impact on your balance sheet.
Tax compliance is another vital aspect of running your own business. Compliance and regulatory issues can be complex, and an accountant will advise you on these, as well as ensuring you claim back all that you’re entitled to.
If your startup is looking to secure funding or a loan, an accountant can conduct an audit of different aspects of your business, such as your suppliers and expenses, to get you financially fit for investment.
Finally, the benefits of having your own accountant aren’t limited to accounting issues. Accountants offer a broad resource of business insight and a depth of knowledge which you can tap into.
Your accountant can also support you as a strategic business adviser.
Does Your Business Need an Accountant?
There’s nothing stopping you from doing your own accounts. It is not a legal requirement for businesses to use the services of a professional accountant.
However, an accountant is a ready resource who can add value to your business.
At a basic level, your accountant can complete your self assessment or end of year accounts. But there are other services which you could take advantage of to help set up your business financially:
These are all essential administrative tasks which growing businesses encounter to a greater or lesser degree.
Most startups often start small, maybe just a couple of people in a room, but as they expand, their administrative requirements expand with them.
The crucial thing is to recognise when these requirements mean you could benefit from outsourcing certain specialist areas, such as your accounting.
Remember, too, that you can claim your accountant’s services as a business expense to offset your taxes.
Is Using an Accountant Costly?
Using any professional service comes with a cost, and this applies to a chartered accountant as it would another type of expert. But having an accountant you can turn to as a resource is also extremely cost-effective. They are someone who you can put in a position of trust, because they gain a detailed understanding of your business, helping to prepare it for growth, while working to minimise your tax burden. Trust really is a high-value commodity when you’re a startup, and it can be the thing that makes a difference to whether you succeed or not.
How Do You Choose an Accountant for Your Startup Business?
When you are choosing a small business accountant you want to find someone who understands your type of startup, as well as someone who will also be able to meet your specific business needs.
If, for example, you are a tech startup, you should be looking for the kind of professional accounting support that has experience in this sector.
Your accountant should also be prepared to provide a person-to-person level of interaction, so you always know who you’re dealing with.
This helps build the essential trust you need to work with an outsourced accountancy service.
Points you should note include:
- Qualifications and membership of associations
- Services they offer, including essentials such as accounting software
- Level of customer service
- Fees
- Who will you be dealing with on a day to day basis?
- How many clients does the accountancy firm have?
Making the most of having an accountant to support your business means building and maintaining a good working relationship with them.
This means making regular contact, and keeping your finances well-organised. Helping your accountant enables them to help you.
Startups and other SMEs can require different levels of accounting support, but it is always worth reviewing the service you get regularly. Maximise what your accountant can do for you and take advantages of the services and insight that will benefit your business.
Why Use Venn Accounts?
Venn Accounts specialises in a range of specialist, cloud-based accounting services for startups throughout the UK. Our team of senior experienced chartered accountants provide dedicated and personalised support to our full range of small business clients. Give us a call on 020 8088 2590, email enquiries@vennaccounts.com or fill in our contact form, and we will be in touch as soon as possible.
