5 reasons why your business needs a chartered accountant
Regardless of the size of your business, your needs will start to change and grow with time.Your client pool will get bigger, your revenue will increase, and you may even need to deal with some unavoidable losses in business.
As time passes, there will be challenges like Tax planning and maintaining cash flow and you may consider hiring an accountant to help you with these tasks.
What if the accountant is chartered? Does it make any difference?
The answer is yes!
In reality, whether your accountant is chartered or not will make the difference between your accounts being handled professionally and ethically, versus you being implicated in fraudulent activity.
Continue reading this article if you want to know why your business really needs a chartered accountant.
5 reasons why your business needs a chartered accountant
A chartered accountant (CA) must maintain accurate records of all financial transactions, thus maintaining an industry-led standard of ethical business practice. Followings are some of the benefits a CA will let you enjoy.
Saving money
You may have an outstanding business idea, but that doesn’t make you good with money management.
While you’re planning how your business will grow, it’s also crucial to have a full financial plan, predicting where you’re getting your money from and where they are going.
Doing all these by yourself can be overwhelming, considering it may cause you to spend less time growing your business. In that case, you really need someone to take care of your accounts for you. A chartered accountant knows all the nooks and crannies, all the proper procedures for this.
Hiring a CA can ensure you have enough time to focus on your business while they take proper care of your finances. Doing so will give you the time to increase your income, meaning that you’re ultimately saving a lot of money.
Help with tax planning
As a businessman, the last thing you want to do is end up with a tax fine, especially if your business is new.
While tax laws seem quite simple, they are not. There are quite a few things you may not understand if you don’t have advanced accounting knowledge.
Since business taxes change and evolve really quickly, a professional chartered accountant is required to keep up with all the latest rules and regulations.
They can help you with the right tax plan, which will help you avoid the fine and you may even pay a lot less tax than you ever thought.
Saving time
Time is valuable for every business owner, especially if you’re running a startup. You need to spend a significant amount of time planning for your growth, designing products or services, and raising funds.
In that case, thinking about money management, tax, and other complicated financial things can be stressful and time-consuming. Having a chartered accountant working with you can relieve your stress and give you more time to focus on your business.
However, it also depends on the accounting farm you’re opting for. Going for a reputed and experienced company like APH Accountants Wirral can help you with the right package and consultancy based on your business types and needs.
Keep on top of cash flow
Do you know what’s the most critical part of running a business? Managing the cash flow.
Even the most experienced businessman struggles in dealing with such issues.
A chartered accountant can create a system that helps you track the incoming and outgoing cash. The system will also cover any financial leaks you may have overlooked.
Eliminate human error
Like every entrepreneur, you may have a great business idea that can change the world. But you can still lack some knowledge that is required to run your entire business smoothly.
However, doing every task for your business without advanced knowledge may do more harm than good. For example, if you don’t have enough financial knowledge you may end up making a huge mistake.
Hiring an expert CA will give you time to focus on what you’re good at while you’re letting the expert take care of other things. You can also avoid basic human error knowing that your finances are in good hands.
Conclusion
It’s okay to be a jack of all trades, but when it comes to the existence of your business, sometimes you need to rely on an expert on a particular subject. While it’s your ultimate goal to grow your business, letting the chartered accountant take care of your finances is the smartest thing to do.
However, make sure you’re hiring a highly-trained professional CA instead of an unregulated accountant. Doing so may cause unnecessary glitches, and wrong reporting, which will eventually lead to more loss.
Besides, poor accounting may raise flags and unwanted attention to your business that you want to avoid at any cost. It’s highly recommended that you do proper research before hiring a chartered accountant for your business.
