Why does my company need an Accountant

Nov 06 2023 Financial Management

IIt’s a direct question to ask, but the response might not be as simple as you’d think. Accountancy as an industry has seen significant change and growth in recent years. There are now many different types of accountants for business owners to utilise:

Compliance Accountants

Will ensure that your end of year reports & tax compliance affairs are kept up to date, manage your company’s compliance risks and complete your returns, advising on the areas of risk and highlighting potential tax savings.

Commercial Accountants

Are hands on and responsible for the efficient running of the organisation’s accounts including everyday duties such as general entries, balance sheets, ledgers, reporting and advice management on tax issues, budgets and forecast and planning. Commercial accounting is about getting the right information to the right people at the right time.

Management Accountants

Provide important information, via due diligence checks and risk management reporting, so that sound decisions can be made regarding a company’s future. When making important strategic decisions, the business owner will need to know the status of an organisations financial health and how it could be affected.

There are various reasons as to why you might need an accountant, ranging from the everyday to the extreme. In this blog, we explore a few of the most common warning signs that may indicate your company’s need for an accountant’s services.

Ineffective Business Growth Strategy

Not all accountants are number crunchers. Some firms specialise in more than just tax returns and VAT receipt collectors. EFM’s team of experience financiers have a wealth of knowledge and experience in a variety of areas across the business and financial management spectrum.

This experience can be applied to helping your company achieve better and sustainable growth.

If you’re struggling to see the profits you want, consulting from an accounting expert can be exactly what you need. Opting for industry or SME experts can help you gain a valuable insight into different markets, learn about where your precious monetary resources are being wasted, and receive sound advice on better investment opportunities.

Unclear around Financial Management

Why does your company need an accountant? Simply put, because you aren’t one.

Financial management of a business can be incredibly complex, and it carries serious consequences if done incorrectly. From missing payments to breaking the law, failure to meet proper standards of accounting and compliance with regulations can leave your business reeling.

It doesn’t matter if you are a nationwide chain or a small business running out of your own home, mistakes and other innocent miscalculations can lead to financial ruin. It might sound like scare-mongering, but it’s the harsh truth of the accountancy world.

Your clients. Your partners. Your investors. Your customers. HMRC. None of them are going to cut you any slack if you make accounting mistakes that impact them or their policies. Accountants can help your business avert a potential mishap by ensuring your business finances are managed correctly and that the numbers are accurate. Experienced financiers can reduce your business’ chances of facing liability and eliminate potential costly errors.

Avoiding the Pitfalls of Growth

When your company is flourishing, you’ll likely be faced with not only the buzz of success but also a mounting list of tasks and responsibilities. These will include new financial responsibilities and processes — processes that you won’t familiar with. Not knowing how to manage these types of tasks can be the difference between achieving your dreams and backtracking.

When you begin to experience rapid growth, your business needs to be capable of adapting and integrating with these changes. The last thing you want is your growth prospects to be thwarted by problems relating to anything from managing staff pay to balancing budgets.

Hiring a professional and experienced finance specialist during periods of sustained or heavy growth ensures your financial obligations are taken care of while a professional looks after the basic monetary details that create the foundations on which your business success rests.

Insufficient Time

Accountancy tasks take time. Filing your tax return, getting financial records together, balancing the books – it all takes time. Time that you as the business owner may not have available or should be focusing elsewhere i.e. making more money. More often than not, you’ll find yourself too rushed for that precious resource to both manage your money and build your brand effectively.

Your company accounting tasks need to be completed one way or the other, but if you don’t have time to do them, they can’t just be brushed under the carpet. Accountants exist to do many things and one such task is helping support the practical side of your business, by ensuring all your accountancy and financial processes are completed to the highest possible standards.

If you’re interested in finding out how our part-time, nationwide team of finance professionals can help to support your business and drive your growth strategy, contact our central team today via email or call 01582 516300

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