So, you’ve decided to start your own business. Do you really need an accountant? After all, there are numerous apps such as Easy Books, Kashoo, and Shoeboxed easily and cheaply available online. These can help the small business owner track transactions, create invoices and keep financial documents organised.
But that’s not all it takes to manage your business’ finances. The small business still does need an experienced, dedicated accountant. In 2014, an accountant is no longer simply a bookkeeper. The accountant’s role has changed.
Accountant As Business Advisor
Due to the ongoing developments in technology, accountants have adapted to remain valuable. In the past, tax returns were the bread and butter of any accounting firm. But, tax returns have been simplified and no longer take the amount of time they used to.
As a result, the modern accountant provides numerous services they did not in the past. These services are invaluable to the small business owner. Now, they now more akin to a business advisor than a simple “bean-counter”.
What Does This Change Mean For Startups?
Accountants Offer Business Advice Prior To Launch
Many modern accountants offer advice to startups prior to launch. This advice could prove invaluable.
Some firms will offer advice on business plans, business structure and registration, pensions and payrolls and much more. Their advice could make these tedious and sometimes confusing aspects of starting a new business easier, allowing you, the small business owner, to start your business in a secure, simplified, and efficient manner.
Accountants Offer Guidance In The Use Of Accounting Technology
The development of information technology over the past twenty years, and in particular the development of cloud technology, has been a fundamental game-changer for both businesses and the accounting profession.
As a result of this development, there many online bookkeeping resources have been created. Accountants will train small business owners in the use of this software.
This allows the small business owner to access their accounting information from anywhere at any time, link the accounting software to their bank account, and integrate other cloud solutions such as workflow, payroll, and point of sale solutions to the software.
This allows the startup to streamline business processes and enables small business owners to keep an eagle eye on up to date financial information regarding the company.
Accountants Offer Accurate And Regular Management Reporting
In the past, accountants would simply deliver financial reviews during the course of a business year at a yearly, quarterly, bi monthly, or monthly interim. They offer much more than that.
Gurpreet Sandhu, CEO of London accounting firm 3 Wise Bears agrees, “Modern accountants should be much more proactive, providing additional help and advice, often beyond what you expect.”
Accountants will deliver financial reviews with an explanation. They will help interpret figures, explain what they mean, and aide the small business owner to understand what this means in real terms.
“They may also arrange regular meetings to discuss your company cash-flow and how it could be improved”, adds Gurpreet.
In 2014, when employing an accounting firm, a small business does not simply get an accountant, but a full time business advisor both before and after launch. Invaluable.
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