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How Accountants Can Help with Business Decision Making


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10th April 2024

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Accounting is much more than simply filing tax returns and balancing the books: it also plays a crucial role in making business decisions on often complex financial matters. More than ever today, businesses need the help of an accountant to provide sound advice and help with strategic decisions.

A small business accountant can steer you through the challenges of day-to-day financial planning, as well as managing mandatory aspects, such as tax returns and payroll.

Why use accounting services?

Research shows 79% of companies agree financial data analysis and accounting services are vital in order to make informed decisions.

Utilising the data that accountants provide enables business owners to optimise their operations, identifying areas for growth and attaining greater success and profitability.

As a result of the technology evolution, such as cloud-based software and AI to complete repetitive accountancy tasks, professional accounting services play an important role, bringing the human touch to crucial decision making.

Providing accurate financial data

Having a clear idea of your company’s overall financial health is crucial to your survival and future success.

An accountant can make sure the financial statements are up-to-date and that they reflect your firm’s ongoing performance accurately. This can help you to determine the areas that need improvement to enhance your finances.

Helping with budgeting

Make sure your company’s budget is in alignment with your goals by enlisting the services of an accountant. This will help you to set viable financial targets that won’t lead to overspending. You can also track your progress to make sure your firm is meeting its objectives.

If you find you’re veering off track, an accountant can make the necessary changes to get everything running smoothly again.

Planning ahead

The UK tax laws are ever changing and when you’re running a small business, an update may be overlooked if you’re busy with other tasks.

Using an accountant means you’ll always be compliant with the most up-to-date tax laws, while they will also identify where you can make tax savings. This will help you with financial forecasting, as an accountant will analyse all financial data to prepare for any challenges ahead.

Risk management

All businesses face risks in today’s challenging climate. If you’re a small business owner tackling them alone, it may be hard to navigate the storm.

An accountant can help you to manage risks by alerting you to an issue and providing professional advice on how to mitigate the problem. They will help you to draw up a viable risk management plan to prepare for the unexpected, including how to keep an emergency fund in case of an urgent issue on the horizon.

Financial advice

A professional accountant is a financial expert who can give you advice on many different topics to help your business grow.

As well as the mandatory aspects, such as dealing with HMRC and organising payroll and pensions, they are your go-to source of advice for any other financial queries.

When you must make an informed decision to benefit your finances and your business, ask an accountant for their informed opinion on how to move forward.

Should I hire an accountant?

New research from Sage reveals a massive 92% of small and medium businesses have used the services of an accountant at some point.

Nine out of ten businesspeople who have used an accountant agree they are an important part of company operations, with 49% now using their services once a week or more.

For startups and new traders, an accountant is the number one service that 34% of them will commission.

The study shows the main reason for SMEs hiring an accountant has been to navigate the Making Tax Digital legislation introduced by HMRC. Almost two-thirds of small business owners say this is the reason they hired an accountant initially. This has been followed by the realisation they can help in other areas of running the company too.

Almost 50% of SMEs say they use their accountant for strategic advice on “critical business decisions”, with only 32% asking advice from a business support network instead.

Times are changing and the value of employing an accountant to help your business has grown over recent years, as they offer a wider range of services to best meet your company’s needs.