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?
- 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
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