Running your business can feel like a constant juggling act of trying to manage rising costs and staying on top of compliance.
However, recent research from Wolters Kluwer has found that some UK SMEs are turning down a helping hand and are not making the most of the support available for them.
The Future Ready Business report revealed that only 57 per cent of UK SMEs are relying on accountants and business service providers for help.
This means that nearly half of the reported businesses are trying to manage their finances on their own, but why?
Businesses are already going through a difficult period of rising costs and tight margins and not utilising the support of an accountant could be limiting your growth and putting your business at risk.
Those who are in the remaining 43 per cent need to know the benefits that an accountant’s support can bring.
Tax rules and reporting requirements are changing regularly and it is easy to feel overwhelmed trying to stay compliant with HMRC.
If you don’t get it right, you could be at risk of missed submissions or inaccurate returns and this can quickly lead to penalties, fines, interest charges and unnecessary stress.
An accountant will ensure that all this is handled correctly and on time. They will maintain accurate records, submit returns on time, ensure correct calculations and meet your VAT submission deadlines.
It is not going to be an easy feat to grow your business without a clear understanding of your numbers.
Accountants can help provide you with accurate and up-to-date financial reporting so you can clearly see where your money is going.
They will put a magnifying glass on your finances that will help you spot rising costs and inefficiencies and allow you to make more informed decisions about your business’s future.
Cash flow management can become a challenge for SMEs at one point or another and even profitable businesses struggle without proper planning.
An accountant will help you track your income and expenses, forecast future trends and potential cost increases and give you a better chance of avoiding shortfalls.
They can also advise you on building a cash reserve for those quieter months and when unexpected costs arise.
Those first few glimmers of growth are always exciting, but they should not overshadow the new costs and requirements that come with it.
Hiring more staff, higher turnover, investing in new systems and increased VAT obligations and reporting requirements will put pressure on your financial systems.
Accountants are there to support your growth and can advise on budgeting for these costs and forecasting the impact on your profits.
They can also ensure your accounts are accurate and up-to-date if you are seeking funding and investment and you want to strengthen your credibility.
The report revealed an interesting statistic that 75 per cent of UK SMEs are outsourcing at least one function.
All businesses can benefit from outsourcing services, such as their payroll and bookkeeping, as it can free up valuable time for you and your team and give you the reassurance that your requirements are being met.
Trying to take on the responsibility of your finances on your own will put more demand on you and you shouldn’t let something fixable hold your business back.
Our professional team are on hand to support you with your reporting requirements, keep your books in order, stay compliant with HMRC and be that trusted adviser you can rely on.
We want your business to scale successfully just as much as you and now is the right time to ensure you are not missing out on any valuable advice.
If you want to know more about how we can help you, get in touch.
