When you run a business, however small, you need an accountant. Fact. Whether you are a sole trader or a large company with many departments, your finances need to be assessed and advised by a professional in the industry. Accountants are trained to spot issues with your financial records, advise on big financial decisions and organise payroll.
However, hiring full time accountants can be highly expensive for small businesses. Here is how to keep track of your finances while staying within your small accountancy budget!
More and more businesses in this day and age are using software to complete a huge chunk of their accountancy requirements. Using products like Opayo or Quickbooks, small businesses can pay their employees correctly and on time every week, fortnight or month.
Automated services have disadvantages, in that they cannot provide advice or personal recommendations to you as a company. But for the day-to-day running of your business, automated accounting software can be a cost-effective game changer if you are trying to keep your finances in order without splashing out.
Automation also eliminated human error, meaning that when it comes to paying business tax, paying people correctly or calculating profits, you don’t need to be concerned about mistakes being made!
Specialist Industry Accountants
If your business specializes in something specific, it is worth looking into hiring an accountant who has worked previously in your area. For example, if your organisation is a non-profit, accountants for Non-Profit companies can provide financial advice based on their previous experience. Similarly, if you are working for a start up, an accountant who has previously worked with growing startups in their early stages can be an invaluable addition.
While hiring a specialist might eat into your budget a little more than using automated software, the expert financial perspective offered by a specialist accountant will provide you with practical insights into improving your financial position as a business.
If your business is very small and not in a position to hire full-time accountancy staff, you should consider hiring freelance accountants to complete the necessary paperwork and provide advice on an ad-hoc basis. Many accountants operate this way, even corporate accountants. Here are a few reasons why a freelance corporate accountant could work well for your small business.
- Fewer costs. If you don’t need day-to-day accountancy work, but once-a-month, or even once-a-year reviews of your small business’ finances, a freelance accountant can provide this easily for your company. This alleviates the need for expensive full-time or even part-time accountancy staff.
- Hybrid working alongside software. If you are using a financial software product like Opayo, you can supplement this with advice and overviews from a freelance accountant. Many businesses operate in this hybridised way, and it works fantastically.
- An objective lens. Having accountants on staff is great, but a freelancer can provide an objective outsider’s point of view can help spot any issues with your financial strategy.
In conclusion, good accountants don’t come for free – but with this helpful guide, you can help keep costs low while prioritising your financial viability.