19 Ways an Accountant Can Help a Small Business Owner

For taking your business to the next stage, more than passion is needed. It would be best to have a reliable team who are as enthusiastic about your business as you are.

As a result, one of the essential choices you will make as an entrepreneur is to hire the right accounting firm. Unseasoned business owners often restrict their accountant’s role to preparing and filing their accounting and tax returns.

On the other hand, a good accountant will provide you with a wide range of value-added services that can help you align with current regulations, save money, minimise risk, manage growth, and plan.

As an entrepreneur, all of your important decisions will be based on your finances, so you must have an outstanding accountant who will provide you with the necessary details and advise you. A great entrepreneur is a driving force behind any successful company. However, behind them is generally a professional accountant.

Having somebody to look after your hard-earned money is always a plus, mainly if your business is in its early stages.

Accounting services can assist small companies and start-up owners in various ways, which we will cover in this article.

Here are some of the main ways in which small business accountants can help business owners:

  1. Assists in improving cash flow
  2. Getting your business started
  3. Assists you in reducing your workload
  4. Tax savings
  5. Assists in managing growth in a sustainable manner
  6. Provides useful business advice
  7. Financial reporting and bookkeeping
  8. Regulations
  9.  Growth financing
  10.  Growth administration
  11.  Audits and examinations
  12.  Purchasing or selling a business
  13.  Assist with the loan application process
  14.  Assist in company succession planning
  15.  To assist you in increasing cost-efficiency
  16.  Assists with payroll processing
  17.  Aid in the provision of virtual CFO services
  18.  Aid in the measurement of business performance
  19.  Assists in staying ahead of developments and regulations

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1.  Assists in improving cash flow

Cash is indeed the fuel that keeps the company going. You would be unable to make crucial decisions to run or expand your company if you do not have effective control over your cash flow.

Cash flow management is critical for your company; without enough cash, even a wildly profitable business will fail. Hiring a professional accountant would ensure that you have good credit monitoring and cash management policies in place, allowing you to have access to all potential funds and details.

Effective cash management refers to how an organisation handles its operations or business practices, capital transactions, and funding activities to maintain a healthy cash flow.

To survive, a company must generate enough cash flow from its operations to cover its expenses, repay lenders, and grow.

A company must not only generate cash from its operations, but it must also maintain cash flows effectively from financing and investing activities.  This will ensure that the required fuel is available for business growth.

2.   Getting your business started

Many businesses struggle because the figures and assumptions were not thoroughly checked.

An accountant will assist you in laying some good foundations for your business plan. They will provide you with an expert second opinion that is free of emotional prejudice.  In addition, an accountant can give constructive feedback on critical areas such as the business model. A business plan that the accountant has approved is ready to go – and would be more appealing to investors as well.

An accountant will also help you decide on the appropriate legal structure for your business, i.e. sole proprietorship, partnership, company or something else. Each has different financial consequences, and some would be better suited to you than others.

3.   Assists you in reducing your workload

When your company takes off, you’ll need all of your resources to focus on day-to-day activities rather than enforcement, tax, or bookkeeping. Similarly, as the company’s finances become more complicated, you’ll almost definitely need to hire a professional to manage them.

Hiring an accountant will assist you in managing activities by proposing process changes, taking on financial and tax duties, and introducing you to resources that will help you save time and money.

4.   Tax savings

An accountant stays up to date on tax law and is aware of all the ways you can legally minimise your tax bill.

He or she may recognise valid tax-saving techniques, such as the use of government grants, annual investment allowance, deductions, expenditures, offsetting losses, or modifying the way you earn money from your firm.

Check out our guide on the top 25 small business tax deductions

5.   Assists you in sustainably managing the growth

A start-up or growing company has many needs, to name a few: balancing the need for money, recruiting the right team, managing cash flow, enhancing customer relations, implementing the right technology, and so on.

An accountant will assist you in managing activities by proposing process changes, handle your financial and tax responsibilities, and introduce you to resources that will help you save time and money.

Their expert knowledge would be helpful when raising funding and designing incentive compensation programs for employees.

6.   Provides business advice

Accountants have the necessary qualifications, knowledge, and resources to act as business advisors. Many people overlook the fact that many accountants often work as business advisors.

They have a wealth of expertise gained by dealing with clients from all walks of life; an accomplished accountant would have seen the majority of the issues and difficulties you will face.

Consequently, an accountant will act as an objective sounding board for your proposals, advise you of possible risks, and alert you to great opportunities.

Their network can add value to your business decisions by connecting you with key contacts that can assist you in implementing complicated plans and resolving complex problems.

7.   Financial reporting and bookkeeping

Bookkeeping is an essential part of running a company, and financial reporting to HMRC is a legal obligation. As part of a comprehensive service plan, a successful accountant will have both.

Check out our guide on bookkeeping and why it is vital for your business.

8.   Regulations

Larger companies, in general, are subject to further government oversight. Compliance with these criteria will consume a significant amount of your time, and mistakes are both familiar and potentially disastrous. Once again, an accountant will relieve you of this responsibility.

9.   Growth financing

Many companies may need additional financing at some point to expand. Obtaining financing from a bank or other source is a significant hurdle to overcome; lenders and investors want to ensure they will return on their investment.

Your accountant will be critical in making a compelling financial argument to the appropriate stakeholders.

10. Growth administration

For example, sudden development that hasn’t been prepared for can be just as troublesome as gradual growth, causing all sorts of issues with cash flow, tax, workers, and office space.

Unmaintained growth spurts can also set you back. A good accountant will assist you in rapidly and efficiently responding to unexpected development and turning it into what it should be: a benefit.

11.  Audits and examinations

Businesses of a specific size must undertake a statutory audit, in which case an accountant should be a must. On the other hand, a voluntary internal audit can be an excellent way to keep your company goals on track, even for a smaller business. This audit ensures that all runs smoothly and is an ideal way to plan for a statutory audit.

Check our guide on business audits to know more.

12. Purchasing or selling a business

Mergers and acquisitions (M&A) can be the most efficient way to expand the company or reach a new market. If you consider purchasing a competitor or complementary company, an accountant should be your first point of contact. They would evaluate the practicalities and the target company’s accounts to ensure that everything is acceptable.

13.  Assist with the loan application process

Taking out a loan to start a business is common. Having an accountant who knows your financial situation on your side will help you present the intention of the loan and consider different funding options.

14.  Assists in company succession planning

According to Martin, the accountant will help you shape the future of your company in addition to advising you on day-to-day financial decisions. It involves making succession plans if you want to move your company on to the next generation of family members or employees.

15. Assists in increasing cost-efficiency

Even the most basic functions, such as controlling cash flow or reducing business expenses, will help a company grow exponentially.

A professional accountant will provide you with a financial map that will help you determine which costs to retain and reduce.

It can also show you which costs can be changed, which contracts are overpriced, and which costs have better business alternatives.

16.  Assists with payroll processing

Businesses with workers must run payroll efficiently and under payroll regulations.

Payroll errors may result in penalties, disgruntled workers, and backdated tax bills.

Payroll enforcement is critical to the operation of a company.

To do payroll correctly, you can hire a good payroll specialist or an accounting firm with accountants knowledgeable about payroll services to assist you in submitting RTI and generating payroll records for your workers and submitting them to HMRC.

17.  Aid in the provision of virtual CFO services

If your company is large enough to need Chief Financial Officer (CFO) skills but not large enough to employ one full-time, you can consider virtual CFO services.

It puts the experience of a CFO at your disposal at a cost that is within your budget.

A successful CFO will assist you in establishing adequate financial controls, manage investor relations, review business strategies, provide impartial financial and business guidance, assist in strategic planning and cash management, and develop effective business reporting.

Most small business accountants in London provide this service.

18. Aid in the measurement of business performance

Setting goals and comparing them against results such as customers gained, revenue increased, and complaints received is almost often overlooked by companies.

Setting objectives and measuring them against results such as customers acquired, revenue increased, and complaints received can be critical in deciding if a company can succeed or fail.

About 90% of start-ups fail because they do not keep track of their main goals and how they are doing about these objectives.

An accountant may assist in developing performance reviews to help an organisation recognise its current performance with the goals it has set for itself.

19. Assists in staying ahead of developments and regulations.

An accountant must keep up with changing trends, new technology, and changes in rules and regulations in this age of emerging technologies. They must also be mindful of the main pressure points that a company faces at various stages of its existence.

A strategic accountant can help you visualise significant challenges the company faces due to global uncertainty by performing daily health checks and financial and economic analyses of the business relative to market averages using specialist modelling, forecasting, and presentation skills.

Once found, they will assist you in preparing for these events by using accurate financial predictions, intelligent solutions, growth management software, and predictive performance monitoring.

Hire an Accountant For Small Business

Work with UK-based Experts for tax, audit, accounting, payroll, & EIS/ SEIS needs.

Have a question? Call us on
0203 983 8100
Monday to Friday 9am – 4:30pm


As a businessman, all of your critical decisions will be based on your finances, so you must have an outstanding small business accountant in London who will provide you with the necessary details and advise you.

Accounting is all about interpreting facts about an individual’s or business’s finances and activities, so accountants can be an integral part of the financial advisory team, guiding you through all of the critical financial decisions.

So, search for small business accountants near me to get your accounting and other business problems resolved from scratch.