Accountants are the key to small business success 1

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Last week the ICAS reported based on IFAC research..

SMEs were shown to traditionally rely on accountants as a main source of business advice. One study identified an 8.1% average increase in sales growth and a 29% decrease in likelihood of failure for businesses using an external accountant.

Also last week smallbusiness reported that 1.3 million britons want to start their own business.

So when would a business need to contact an external accountant?

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  • Business Plans
  • Budgeting and Forecasting
  • Cash Flow Management
  • Buy or Rent decisions
  • Capital Investment Appraisal
  • Accounting Procedures and Systems
  • Business Strategy
  • Busines Funding and Investment
  • KPI’s

For start ups its particularly important to ask your accountant to help with:

  • Choosing the right business structure for your business – most businesses start out as sole traders but once they start making profits convert to limited companies, this is because sole traders pay more tax than company structures
  • Choosing the best VAT Scheme you might be better off with Flat Rate or Cash Accounting
  • Choosing the most suitable accounting software
  • Creating a business plan and cash flow forecast – research shows that business that have a business plan make 20% more profit


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