What can accountants do for a small business?

Posted by Vidit Agarwal on November 12th, 2022

Accountants provide a wide range of services, which are useful to businesses starting up. Professional Accountants help in deciding the most appropriate business format to start - partnership, limited company, or sole trader. Every business format has its own implications for taxation, raising finance, and personal liability, so it's vital to choose the right option. The governmental bodies lay down rules and regulations revolving around taxes, but online accountant can provide expert advice and timely assistance regarding how to save money and gain profits on tax returns. Experienced in maintaining records, they can give wise and safe options to invest your money for growth. An accountant, like any other professional, is bound to a set of universal rules that govern the quality of record keeping and financial statement construction. The universal standards that an accountant should be concerned about are IFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles). There are various accounting designations like Chartered Accountant, Certified Management Accountant, Certified Internal bookkeeper and Certified Public Accountant. An accountant can do more than one task and provides quality information regarding your company or personal financial health. There are various elements in finance that contractor accountants London is concerned about, they are:

• Accounting and Bookkeeping
• Advise on payroll preparation
• Financial statement analysis

Bookkeeping: It is the evaluation of financial statements of a company to ensure that there no discrepancies in transactions that are represented. Bookkeeping can also be done internally by employees, but it is advisable to outsource bookkeeping to external professional like accounting firms that will give a neutral report. Bookkeeping is done to detect omissions or misinterpretations which are commonly called “basic errors” and those that jeopardize the fairness of financial statements called “Fundamental errors.”

Payroll preparation: Payroll is something you don’t want to play fast and loose with, creating a payroll calculator from scratch is an incredibly tedious process. Miscalculation in payroll can turn into a big lump sum sized problem for you and your employee as well! So when it comes to processing payroll, it's usually best to invest in a payroll service or to work with an accountant.

Financial statement analysis: It is a close examination of balance sheets to interpret the company’s financial progress and can help investors, managers, clients, and stakeholders to enable or enhance their decision making. Accountants carry out various tasks that help one focus on their business, leaving the determining arithmetic work in their hands.

Here are some of the other key ways in which accountants can help with of your business:

• Paying the right amount of tax
• Saving tax
• Buying or selling a business
• Improving cash flow
• Setting up your business
• Funding for growth
• Regulation
• Reducing your workload
• Growth management
• Business advice

Once the decision is taken to start the business, your small business accountantAberdeen can be your networking unit to get referrals for your business to expand and flourish. This is important because it affects many other issues such as filing the correct paperwork with HMRC, getting the correct letterheads, addressing patent rights, and many more.