When you start a business, you have several things to consider. What are you going to be selling? Who is your target audience? What kind of profit margin do you need to make so that the business is viable and so that it can provide you with a living?

But more importantly, where do you want your business to be in 3 years’ time? Accountants are more than just bookkeepers. They help start-ups get a firm understanding of their finances so that they can grow their businesses steadily over time.

In this article, the TWP team explain the benefits of having an accountant on board and what accountants can do for start-ups.

Aren’t accountants just for large businesses?

A common misconception amongst first-time business owners is that accountants can only help larger businesses. That’s simply not the case. Even before your business is up and running, an accountant is a key ally.

What can an accountant do?

The different services that an accountant can offer you will vary between accountants. However, they all help your business function better by providing several core services, including:

Tax efficiency

Everybody pays taxes but many people and companies pay too much of it each year. An accountant can make sure that you aren’t left out of pocket by the taxman, especially when money matters the most right at the outset of your time in business.

They can do this in several ways ranging from advising on the kind of business you should form for your venture (LLPs, PLCs, and so on) to how you take money out of your business to pay yourself.

Set up a budget for growth

You may not want to be a small business forever and, if that’s the case, you’re going to have to plan for growth later on. This means that you’re going to have to pay for more staff members, invest in more marketing, and perhaps prepare to move to a larger premises. All of these things require money up front so knowing how much to save up is important.

An accountant can give you a good idea about how much you should be able to comfortably save each month to reinvest into your business.

Advice on growth and expansions

Speaking of growth, accountants can break down your cashflow for you so that you can see when your slow months are and when is the best time to conserve your money. This information can be used to see when the optimal time is to actually expand your business safely without, in most cases, having to take on debt.

Help with loans and investments

Many start-ups require the help of a loan or an investor to get off the ground. These banks or the investors will need to see business plans, profit and loss forecasts, as well as an overview of your trading history. Your accountant is the best person to help you bring all of these different elements together to impress an investor.

How do these services help my small business?

Although accountants help businesses of all sizes, start-ups get the benefit of futureproofing from accountants. All of the systems they put in place will set your business up for success in the future. If everybody had the help of an accountant from launch, then fewer businesses would fail.

Everything that an accountant does is scalable and the advice that they can give you will mean that you will know exactly what to do to steer your business in the right direction. This covers everything from spending as little as possible on taxes to setting a reliable budget that you can stick to for the future.

Start off on the right foot with TWP

If you are looking for an accountant to help your start up get off the ground, get in touch with one of our professional accountants. We can help you give your business the best chance of success through structured financial planning and guidance.