Why more small businesses should use accounting services

Did you know that many small businesses don’t use the services of an accountant? If you’re a small business owner and don’t currently benefit from accountancy services, what would change your mind? A whopping 46% of small businesses don’t work with accountants and of those who do, 47% only use them during tax season. There are so many ways that accounting services can benefit small businesses. Here are some things that accountants offer that might help change your mind if you’re currently not using one:

1. Show that they can help with getting a loan

A major pain for small businesses is funding. Between looking for investors and going bank to bank looking for finance, small businesses have a tough time getting loans. As many as 80% of small business loan applications fail due to concerns over ability to make repayments. Working with an accountant can give a small business increased credibility and can improve forecast and expense reporting to give a stronger chance of acceptance.

Image credit

1. Demonstrate that they can help during an audit or to stop an audit

The word ‘audit’ is enough to strike fear into the hearts of any business owner but working with an accountant can lessen the chance that a business will be selected for an audit in the first place. Even if a business is faced with the dreaded audit, an accountant can greatly assist your preparation to ensure all goes smoothly. For Stroud accountants, visit a site like https://www.randall-payne.co.uk/services/accountancy/stroud-accountants

1. Show that they will be around all year, not just tax time

Sometimes accounting firms could be blamed for only advertising when a tax deadline is approaching. Yes, dealing with tax is a considerable earner for accounting firms but seeing as one third of small businesses don’t save for income tax and some have no idea how much they owe, tax is a matter that should be kept up with all year round. A small business will be in a much better financial position if they know what’s expected and how to budget for it.

1. Demonstrate how useful bookkeeping is for a small business

When a small business expands, so too does the complexity of financial transactions. An accountant can assist during this growth period, especially in matters like financial products and services, commercial space and recruitment. All of these factors require careful budgeting and this is where an accountant becomes invaluable.

Image credit

1. Help with selling a business

When the time comes and you wish to sell your business, an accountant can help to ensure you get the best deal. They can provide accurate financial reports and this is essential for potential buyers to see the very best of the business. If you want to negotiate the best deal, having an accountant in your corner can make all the difference.

1. Explain how much they can help with

Why are so many small businesses not taking advantage of such wide ranging financial advice? Accountants need to start shouting louder about the many benefits they can offer. These benefits include keeping tabs on revenue and expenses, dealing with taxes and helping with invoicing.