10 ways accounting helps your business

6 Dec 2022

Even if you’ve got a talent for keeping your accounts in order, you won’t necessarily have the time. There are many ways an accountant can add value to your business, from handling the bookkeeping aspect to helping your business grow.


1. Setting up your business

Your accountant can help you understand and decide which legal structure to assign to your startup – freelance, limited company or partnership. 

There are different financial implications for each type of business. With an accountant by your side, you can pinpoint the most suitable option for your needs. An accountant can also assist you in creating a business plan with robust forecasts and figures. 

2. Bookkeeping and accounting

Many accountants provide both bookkeeping and accountancy services. 

They will keep track of the money that flows in and out of your business (cash flow) and prepare your tax returns. They’ll also help you see the “bigger picture” when it comes to your business’ financials, and carry out audits and forecasting. 

3. Paying the correct amount of tax

Your accountant can help ensure that you don’t underpay, as well as overpay, HMRC. Accountants understand what you’re allowed to expense and what you can’t, and could help you save money compared with if you did your accounts yourself.

4. Identifying tax savings

Accountants are well-versed in the ways in which SMEs can (legally) reduce how much tax they pay. Some options they might explore with you are expenses, offsetting losses, allowances or the way you pay yourself from your business, for example.

5. Cash flow management

Cash flow is king, as the saying goes. A business can be profitable but if it doesn’t have available cash problems can arise. A good accountant will help you navigate your cash flow to ensure that you can meet your expenses and safeguard against risk. 

6. Mergers and acquisitions

If you’ve ever considered entering a new market or expanding your enterprise you may have come across the term mergers and acquisitions (M&A). 

M&A relates to the process of buying a business that aligns with yours, such as a competitor; an accountant can help ensure that the accounting side of things is in order.

7. Regulatory requirements

Complying with government regulation can be complex and very time-consuming: and any mistakes could potentially cause significant damage. Accountants can deal with the compliance side of things so you can focus on running your business. 

8. Dealing with growth

Growing too quickly – or indeed too slowly – can pose financial challenges. Again, a quality accountant can help you navigate growth so that you can continue to pay suppliers, access equipment, hire staff and meet your other operational costs. 

9. Auditing

Although big businesses must have a statutory audit, SMEs could benefit from auditing too. An audit can provide you with an overview of how your business is performing and ensure that you’re on track to meet the goals set out in your business plan. 

10. Funding for business growth

Many businesses encounter a time when they need more funding, whether it’s to meet operational costs in a seasonal slump, or to buy more stock or hire staff ahead of a busy period. As well as being able to prepare and present a financial case for investors, accountants can also help you access business finance. 

Connect is Funding Options’ dedicated solution for accountants. Our technology enables accountants to match their clients – business owners like you – with the right funding so that they can plan, trade and grow with confidence. 

You can also start your own journey with Funding Options, directly. 

Tell us how much business finance you’re looking to secure, what you intend on using the funds for and how quickly you need it, and our technology will compare up to 120+ lenders to match you with the right finance options for your needs.

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Thomas Boyd
Thomas Boyd

Head of Commercial

Thomas Boyd is the Head of Commercial at Funding Options. Thomas started his career in the finance sector at LendingCrowd. His work over the past five years has focused on supporting the vibrant and growing community of SMEs across the UK.

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