Does Your Accountant Provide Value, Or Are They Just a Cost

Accountants are people who do the books, file taxSo much can be gained from focusing on your
returns and generally fulfill a necessity of life that mostfinancial data. By looking in detail at your financial
business owners would prefer to do with out! Well thatperformance a good accountant who is also a
is the case the majority of the time, however therebusiness person should achieve the following for you:o
are professionals out there who offer services thatFull analysis of your financial data and performanceo
can really enhance your business' wellbeing, and as aComparison with industry statistics such as
result your wealth. This brief article looks at some ofperformance, turnover, liquidity and employees.o Cash
the areas you could be looking at.flow managemento Overhead analysiso Gross Profit
Do you just send your books off for the basicmargin analysiso Pricing structureso Analysis of stock
accounting services that you have to get and considerlevelso Employee efficiency - time management etc.o
it an unnecessary expense?A full and comprehensive report covering all the above
I have listed below a selection of services that yourincluding the steps needed to be taken and what
accountant could provide you. If they do not, youresults can be expected.o Review meetings
should consider either getting a new one, or contactingManaging for Reward
a strategic planning company such as Exit Plan Ltd.Running a successful business is helped by having up
Who can kick start what you need to get to the nextto date financial data. These days it isn't enough to
stage of success, with a plan that ensures you getwait until the year end for this information. You should
these services?receive regular feedback on the performance of your
Standard Accounting Servicesbusiness in the form of Management Accounts. Indeed
I can only assume if you do use an externalyou should receive management accounts monthly or
accountant that you would at least get the followingat least quarterly from your accountant.
standard accounting services:Business Plans and Forecasts
1. Year End Accounts Preparation - at minimum youI'm sure you've heard the saying, "If you fail to plan,
should get your year end accounts completedyou're planning to fail." This is why it's so important for
efficiently and professionallyyou to have a "working" business plan and
2. Tax Planning - The whole purpose of tax planning issupplementary forecasts. A good accountant or
to pay less to the government and keep more for youbusiness advisor will help you develop your plan to
and your business!meet your objectives, and regularly update the plan to
3. Financial Management Systems - Your accountingfor ongoing management use.
records must be maintained to meet legal andRaising Finance
government requirements. Furthermore, they should beThere comes a time in the life of almost all companies
capable of efficiently supplying you with the informationwhen extra finance is needed. Your business is no
you need to run your business.different. Finance could be needed for a new car, a
4. Bank and Professional Advisor Selection - Differentnew piece of machinery, working capital demands,
banks suit different businesses. In some cases it canacquiring freehold or leasehold property, and business
be a matter of personalities. The same goes foracquisitions. Getting the right advice using the most
solicitors, financial advisors, and factoring companies.sensible and appropriate sources is all that matters.
5. Wealth Management - Your personal financialDoes your accountant provide this service?
planning, including mortgages, pensions, investments, lifeAcquisitions & Disposals
assurances etc, should not be carried out in isolationWhether you're considering buying, selling or passing on
but part of your overall financial strategy. A goodyour business, we offer a full advisory service. This
accountancy firm will have strong links with excellentincludes valuations, tax planning, market searches,
Independent Financial Advisors who can give you allarranging finance and project appraisal. We agree
the advice and support you need.your instructions in advance and offer you a
6. Personal taxation issues - You should be able tostraightforward opinion on the viability or otherwise of
avail of a full self-assessment management serviceyour position.
for business owners, employees and individuals.Payroll and Bookkeeping
Starting with a pre-tax year preparatory letter that willFor many business managers, payroll and bookkeeping
help you collate the information required, prepare yourare two of the most boring and time consuming tasks
annual tax return, calculate your tax liabilities, advisenecessary for the smooth running of the company.
you of future timetables for payment of the tax, checkThe good news is you don't have to worry about
statements of account, obtain any repayments dueeither of them. A good accountant should be able to
and help you meet all filing deadlines.help you find the right outsourced solution.
Listed below is what a value added accountant shouldSo how many of these services do you receive, or did
provide their client. At minimum, they should be able toyou even know that they existed? It is time
advise where these services can be obtained.accountants shrugged off the mantle of being slaves
Analysis of your accounts to identify Performanceto business owners' demands and actually started
improvementsproviding real value.