When it comes to business finance your accountant should be giving you more advice than simply offering compliance.
Many business owners wonder if they really need an accountant. In fact, researchers found that 60% say they don’t.
Businesses using an accountant may only ever contact them when it comes to filing tax forms to keep them compliant.
But using the services of an accountant is about more than simply compliance. We’ve already mentioned how using an accountancy company such as Concept Accountancy can save businesses money in a previous blog.
So what else can we offer that’s more than just filing accounts or keeping you on the right side of the law?
Why an accountant is about more than compliance
Accountants are trusted by the majority of small business owners, according to an annual study by Sage. It found that 54% trust accountants and that figure continues to grow.
Most responses said that managing and filing accounts was the most valuable service.
But a number also said they would turn to their accountants for business advice before asking anyone else.
You see, as well as accounting, accountants like Concept Accountancy can help you manage your finances, forecast and help your business grow.
Here, we look at the difference between an accountant meeting the compliance needs of a business and how we can help your business’s finances.
What is accounting?
Business owners understand that they need to keep records for legal reasons. The most basic reason is to show the income and expenditure of their company so their tax is correctly calculated.
In basic terms, accounting involves looking into the past to balance books, report on what’s happened and the legal structuring of the business. In many ways, it’s all about getting things in order.
For the vast majority of businesses, their accountant is nothing more than their tax agent. They use their technical expertise for tax compliance and ask them to file their tax returns and deal with regulatory bodies to keep them compliant.
But concentrating on what’s happened rather than looking ahead means many business owners are missing out. At Concept Accountancy, we have team members who are experienced at managing finances to help companies plan and grow.
How accounting and financial management differs
As we have seen, accounting is all about looking at the figures after the event. But if you want to focus on financial growth, a different kind of accountant is necessary.
Financial management is about making sense of the numbers and using that information to make better decisions. By analysing the data, these types of accountant project growth and help businesses plan for the future.
Having an insight on the economics helps provide analysis. This helps company directors can make decisions for the future, such as hiring employees and managing cash flow. They do this by using financial forecasting and budgeting.
The goal is to advise the business to help them leverage their finances to improve profits, cash and the financial value of the business.
What do you need?
All businesses can benefit from using an accountancy company that can help them take stock of their current situation while helping them plan. It means your business’s health is fully understood and any potential future issues can be dealt with before the become a problem.
For example, if your profits are increasing more than previous financial years, you can plan for payment of higher taxes. If you’re relying on your accountant to only provide compliance, you may get a surprise about how healthy your profits have been and feel pressure if you haven’t the funds to pay your tax bill.
Talk to our team about how we can help your business plan, grow and increase value. Contact us today by filling in the form below or use our contact page.