What Do Accountants Do for Small Businesses?
Having an accountant for a small and medium business is just as important as having one for one on a larger scale, it is about the skill of being able to successfully manage the incoming and outgoing money that is being exchanged through internal and external measures in your business. An SME is most commonly classified by the number of employees being fewer than 250 employees. It is referred to as small to medium, but this categorisation must not be underestimated. Rather than a single person with limited accounting knowledge or experience handling the cash flow, payroll and bank reconciliations, amongst other things, with ICS Accounting, you can have a whole team of combined experience taking the best care of your money.
The support provided by an accountant for a small business is invaluable, no matter what time they begin to assist your company. This can include dealing with stock/inventory management and unpaid invoices, which continue throughout operation at no fault of your own, but this extra task is one that you don’t need when you could be spending your time on other business affairs.
On this note, managing debt is a big factor that accountants carry out; both good and bad debt can be managed with borrowing strategies, repayment flexibility and interest rates, helping to inform you when reinvestment may be an option. Essentially, accountants for small businesses can fix your cash flow with smart budgeting for forecasting, staffing, payroll and training to name just a few. This budgeting can improve the efficiency in terms of cloud accounting software for KPI tracking, cash flow dashboard and automated accounts payable, as well as tax exposure, record-keeping and audits.
Future Proofing with Business Accounting for SMEs
All revenues and outgoings that are processed and handled through the business have to be documented for a number of reasons. A main priority of successful bookkeeping is that everything has to be documented for tax purposes from corporation tax to VAT, as well as balancing through the likes of bank reconciliations. This is to ensure that you are paying and contributing the correct amount, as well as reclaiming the rightful amount. From expenses to sales and company purchases, every transaction must be recorded.
Keeping these financial documents in check proves extremely useful for audits, as well as financial forecasting of revenues and outgoings. The benefit of having such an experienced team is that we know exactly what we are dealing with and how to spot any opportunities and potential mistakes in the accounts before they turn into an issue. This forecasting is vital to small and medium businesses to ensure that they can create a budget for the next financial year based on their estimated incomings and outgoings; our accurate accountancy services can highlight any areas and finances where investment can be made or perhaps where costs should be cut. Without such, you may be missing out on opportunities or overinvesting in an area that does not provide any return.
Finally, these financial statements can provide an essential source of information for growth opportunities and stakeholders. For example, when acquiring a loan to invest in bigger property, statistics and data as proof of a company’s liquidity and ability to uphold repayments will be required to justify the decision. Often, if it is not a bank, it may be a stakeholder that chooses to invest, and they, too will require accurate business-wide account data to justify their decision.
Contact ICS Accounting for Further Information on SME Business Accounting
We offer a high-quality, comprehensive accounting and taxation service, freeing up your time to let you focus on driving and growing your business. If you require any further information regarding how we can tailor the service to your business or any other enquiries, simply get in touch with us today by calling 0800 288 9015.