Why do you hire an accountant?

accountants in Cardiff and Bristol
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I think that must be the question a lot of start-ups, and even some more established companies ask themselves.

And I’m sure most of those organisations come to the same conclusion – because they have to. After all, who else would be able to file the returns with HMRC, and who else knows how to do the bookkeeping (and who else wants to do that…).

But I wonder how many of those leaders choose to engage an accountant because they want to?

accounting-blog-post-1-imagePerhaps the reason that so many feel forced to engage the services of an accountant is because accountants don’t make it clear what they can offer a start-up – or even any business.

A qualified accountant has studied for at least three years to gain their accreditation, quite often longer. They will have understood many parts of an organisation; sales, purchasing, payroll, logistics as well as the technical side of accounting.

Their training allows them to map the flow of a process, how a system works or understand the parts of the company that are weak. It’s not a coincidence that so many qualified accountants become CEO’s – around 30% of FTSE 100 CEO’s came from a Finance background.

Absolutely your accountant should be able to file your tax return, and calculate your tax liabilities, but what else could you ask your accountant for?

An accountant should be able to analyse your business and advise you on what has been going well, and what is struggling. They should be able to build targets and growth plans, and advise you on strategies to achieve those.

They can help you find sources of finance, build a business plan, and help you understand your business, through analysing your data;

accounting-blog-post-1-image-2How many customers do you need each month to simply make it worth opening the doors?

What’s your most profitable product lines? (Product profitability/mix analysis)

How much stock can you hold, and how quickly could you sell ALL of that stock? (Inventory management)

How long could you continue if your customer base disappeared? (Liquidity)

All sorts of ratios and variances that can help your business thrive and grow.

And all you need to do is ask your accountant, can they answer? adds accounting can!



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  • Kenneth Gladman

    That is pretty interesting that most CEO’s come from a finance background. It makes it very intriguing and attractive to have a qualified accountant on your businesses side. Their knowledge on financial matters can be very valuable.

  • Ridley Fitzgerald

    I can see why hiring an accountant is a great idea. Like you said, they are trained to do what they do, so they know the process in and out! I’m not confident with taxes at all, and I don’t even own a business! It’d just be nice to get some professional help.

  • Earnest Watkins

    I thought it was interesting how you mentioned that a qualified accountant generally studies for at least three years before they get their accreditation. It makes sense how all that studying would definitely make an accountant a lot more qualified to handle your payroll and finances than you could. I’m not very good with taxes or things like that, so I can see how a qualified accountant could help me out.

  • Millie Hue

    It got me when you said that hiring an accountant gives you the assurance that your business will be handled well regarding the financial aspect. As you mentioned, they have studied this industry for years, so they know well the different parts of the organization. I guess I will show this to my mom to convince her to hire an accountant for her future perfume business. Her expertise is in chemistry and not in accounting, so she could really use some help to keep her business running.

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  • Michael Lee

    I always think of the Schindler’s List quote when thinking about accountants. We could all benefit from a clever accountant, not only for our taxes but for financial planning or budgeting like you say. I’ll have to show my boss that we can use an accountant to help us develop a plan for growth.

  • Kenneth Gladman

    It is interesting that many accountants eventually become CEO’s of companies. This shows just the amount of knowledge they possess and can bring to your side. If you are looking for some help in finance then this might be someone you hire.

  • Millie Hue

    I like that you pointed out how an accountant should be able to create plans and targets that can help you achieve your goals. With that in mind, we should pick an accountant well to ensure that our business will go up. We just need their services next since we will open the beauty salon in January of 2019.

  • Arya Smith

    Thanks for pointing out that the accountant that we should hire must be able to tell us the problem areas specifically and know how to solve it. I will share this information with my best friend since they will be starting a skincare business next year. They only learned about the making of their future products, but they never had any background with the financial aspect. So their services will be needed.

  • Camille Devaux

    It is helpful to know that you are getting the right financial advice. This is nice that you can ask questions and know what will help you succeed. My sister might like knowing this as she looks for an accountant service.

  • Hazel Owens

    That’s good to know that an accountant can figure out which parts of a company are weak and which work. It would be smart to hire an accountant if you are just starting out as a business since they could guide you on what to do to make a profit. Plus, they will be able to help a business with taxes later on.

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