"You have to understand accounting and you have to understand the nuances of accounting. It’s the language of business."
Warren Buffett
World Renowned Investor.
Accountants
Small business or not.
Behave like a big one.
Whatever size your business, an accountant is an incredibly useful person to have to hand in life. If you’ve started running your own business, an accountant is more than a ‘nice to have’ and if you already have an accountant, you may not be using their skills to get the best from your business. Explore the pros and cons of using an accountant and find out how an accountant can be the difference between make or break, what advice they can offer, and how they can be a life changer with it comes to a
financial decision.
Here To Help
Working out your own finances can be a complicated process, especially if you are expanding your expertise into new areas such as setting up a business, or even starting a pension. There’s a lot of opportunities in life to make financial mistakes, so having an expert on hand to double, or even triple check your math is a sensible route to take.
Across all the pages in this section, we provide a series of guides to help you identify what you should be looking for, particularly when it comes to funding your business at the right levels, so when that time comes, we can help you…
CHOOSE THE ADVISER WHO UNDERSTANDS YOUR NEEDS.
First things first. What does an accountant actually do?
Can you pls call An accountant can be a key member of your business team, and can assist in many ways, including:
Setting up your business
If you’re just starting up, nothing is more important than your figures and forecasts. An accountant is crucial at the business plan stage, putting in good foundations for you to build your business on. They will bring a logical mind and unbiased opinion to the set-up process and have constructive feedback on your business model.
Ensure you’re paying the right tax
When it comes to business tax return, you want to make sure you’re on the right side of the law, as well as not paying too much. Accountants can help work out your costs confidently and identify areas where you can save. They will know lots of legal methods to reduce the tax you pay, so ensure you take their advice.
Cash flow improvement
Cash flow is highly important, especially when you’re starting a new business. If you don’t have this detailed, you could very quickly sink. So, employing a good accountant can help keep your head above water, increasing investors and stakeholder’s confidence in your business.
Reduce your work
When starting a business your workload is going to be high, especially if you really take off. Finances may be the last thing you can focus on, so sharing the load with an expert in the field can be a great relief and weight off your mind.
Financial reporting
Managing your business’s finances is a legal requirement by the HMRC. A good accountant will provide a bookkeeping service as part of a service.
Regulation
There are a lot of government regulations to comply with when setting up a business, so an accountant can help take this pressure off your shoulders.
Growth funding & management
Securing additional funds is not unusual to help your business grow. Those looking to invest in your company will be after proof that they will receive a return if they do provide an investment. An accountant can provide vital information to form a strong case for your business.
If you grow faster than you expected, although essentially a good thing, it can be a little problematic if you’re not ready with things like a cash flow plan. An accountant has the ability to react fast and help make the most of the situation to manage any surprise growth.
Audits
Internal audits can be an excellent way to help your business keep reaching its goals, especially for a small business. Those enterprises over a certain size will need a statutory audit to ensure they are meeting all expectations, and an accountant is invaluable on those occasions.
Purchasing or selling a business
If you’re thinking of merging with another company, or acquiring their business, then an accountant can help evaluate the practical side of this transaction. They can also look into the target company’s accounts to make sure it’s worth your time.
Advice for business
Good accountants should have a great amount of knowledge of all areas of business, and the positive and negative opportunities that may arise. An accountant can be an excellent confidante to discuss ideas and help keep a practical mindset.
As with professionals in any field, each accountant has their own strengths and weaknesses. Make sure you deal with someone who will fit best with your needs and business ideas.
Most importantly, an accountant can give you invaluable financial information to help with your decision-making process, helping your business succeed in its field.
When do I need an accountant?
If you find you are spending longer than you wish, or feel comfortable with, on your business’s finances, then it’s time to get an accountant on board.
If you are not trained in finances, the process could end up taking much longer than is needed, and perhaps even lead to you making expensive mistakes.
How do I know an accountant is right for me?
Getting on with your accountant is very important, especially if you’re going to be relying on them heavily for business support, so make sure you always meet them in person to ensure they are the right person for you.
It’s also wise to discuss their qualifications to ensure they have what you are after. Most in the UK hold qualifications from bodies such as ICAEW, ICAS, CIMA or ACCA. They could also be chartered, which is a recognised level of high professional standing.
Make sure you also discuss their fees. Their main job is to save you money, so they should be able to deliver a good value service.
Small business accounting
Any business with up to 50 employees is considered a small business. If you employ an accountant for this kind of business, you would be expecting to receive services in:
- Annual accounts
- Bookkeeping
- Tax returns (corporate and personal)
- Monthly & annual payroll returns
- VAT returns
- Advice on tax avoidance legislation
- Ongoing day-to-day advice
You can normally receive this package of services for anything from a monthly fee of £60 to £250. Businesses with a higher turnover could expect to pay a little more.
How to pay your accountant
You can pay an accountant monthly, hourly or for each individual service, depending on your requirements. An accountant normally has a base rate of about £30 an hour, with specialist services costing anything between £125 to £150 an hour.
If you choose to pay your accountant service-by-service then one of fees could look like this:
| Service | Turnover / size | Typical fee |
| Business accounts | £20,000 to £30,000 | £150 |
| £100,000 to £130,000 | £400 | |
| £250,000 to £300,000 | £600 | |
| Payroll services (incl. PAYE) | 50 employees | £200 per month |
| 100 employees | £500 per month | |
| Director’s tax return | £300 | |
| VAT returns | £0 to 100,000 | £100 |
| £100,000 to 200,000 | £150 | |
| £200,000 to 400,000 | £200 |
Costs can rise with company turnover, as can payroll fees as your company grows. These are simply a guide, so make sure you talk clearly to your accountant before you agree to anything.
Behind every good business, there is a great entrepreneur. However, behind them, there is normally an accountant. Make the most of yours and ensure you are able to get their best service out of their time with you.
Abacus Associates manages the personal wealth of many people across the UK and over £1 billion of investments, providing clients with financial advice and access to investment products and services.
We do not charge for initial consultation meetings. If you would like a face-to-face meeting, feel free to pop over to our office or we can always can come to you.
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Abacus Associates is a trading style of Saltus Partnership Limited which is authorised and regulated by the Financial Conduct Authority. FCA reference number: 554381
Registered office: Solent Business Park, 4500 Parkway, Whiteley, Fareham PO15 7AZ. Registered number: 07586042
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