How Can an Accountant Benefit Your Small Business?
If you are a small business owner, you’ve quite probably worked with a certified accountant at one point or another. But, were you aware that accountants Conwy can do more than just your taxes and bookkeeping?
Accounting is all about interpreting information about an individual or company finances and operations – accountants make up a key part of your financial advising team who can help you to navigate all the important decisions that have an impact on your business finances. Here are some of the things that an accountant can do for you and your business.
Review Your Documents & Contracts
If you are entering into an agreement with possible tax or accounting implications, it is a sensible idea to have your accountant review the document. Accountants can analyse the agreement and let you know about the tax and accounting consequences that will affect an individual’s or an organisation’s financial prospects. Their perspectives help their client avoid negative consequences associated with cash management, financial planning, financial statements, and insurance.
Guide Business Succession Planning
On top of being able to consult on everyday financial decisions for the business, your accountant can help you to shape the future of your business too. This includes making plans for succession if you’re looking to pass your business down to the next generation of family members of employees.
Business Growth
If you own a business, you know your company’s success hinges on hiring the right people at the right time. Accountants are perfectly positioned to help clients figure out how to grow their business with smart hiring. By providing business owners with people-focused financial metrics each month, such as operating profit per employee and average expense per employee, accountants can help small business owners manage their greatest asset — their workforce.
Estate & Trust Planning
Since your taxes can impact your estate, you may want to work with an accountant to make sure more of your hard-earned assets go to your heirs or charity rather than the government. Accountants can provide strategies that allow their clients to pass assets to children or grandchildren before they pass away, or provide strategies that will allow non-profit organizations to benefit from a client’s generosity while minimising the tax ramifications. These strategies help clients make sure that a greater percentage of their assets go toward organisations that provide social good.
Assist the Loan Process
Starting a business often involves taking out a loan. Having an accountant who understands your financial position can help you present the purpose of the loan and consider various options for financing.
Once the client needs have been qualified, accountants can help business owners with the next phase of winning a loan.Usually, accountants help clients gather the information and data necessary for a loan, from quantifying the current financial condition and credit need to identifying repayment sources. With this data, accountants can also work with clients to craft compelling loan applications that can improve the chances a bank will approve the request.
