Once your business reaches a certain size the assumption is that you’ll need an accountant. But what for exactly?
Assumptions can be dangerous. You might assume your accountant’s job is to make sure your business is in good financial health. Maybe it isn’t. Their remit might just be to carry out basic tasks like bookkeeping, producing financial reports and filing returns to HMRC.
To build a growing and resilient business you need more than somebody who simply reports the numbers.
Imagine if you had a partner who can tell you what the numbers mean, highlight risks and potential problems, help you structure your business to eliminate waste and inefficiencies, and ensure your business finances are aligned with your personal financial goals.
Not all accountants will do these things.
How Much Does Inefficiency Cost Your Business?
Research by IDC shows that businesses can lose 20-30% of potential revenue through inefficiencies. Your accountant could help you root out where those inefficiencies are to improve profitability and resilience.
Your business might also need sound financial advice to help make better investment decisions to support future growth while keeping financial risks under control.
All of these things depend on having financial interpretation that goes deeper than a standard Profit & Loss (P&L) statement. There has to be an in-depth understanding of how your business works, how it’s structured and what you’re hoping to achieve.
Interpretation and Guidance
Modern accounting packages can produce standard financial reports. The quality of the data that goes in in the first place is key if you want to understand what’s happening in your business. The value is then in the interpretation of the numbers to identify trends, risks and opportunities. It’s also in the quality of the advice that leads to better decisions, improved profitability and more resilience.
Interpretation is a significant word. It’s a lot like translating the language of finance into the language of business. At this point it becomes something you, as a business owner, can work with.
Differences in accountancy services grow out of relationships. Our approach is to understand the fine details of how your business operates and how it’s structured. The numbers then take on added levels of meaning as they relate to real people and real processes.
The advice we offer is then much more relevant, useful and actionable – because it’s based on the realities of your highly individual business rather than an abstract or theoretical model.
To find out whether your accountant could be contributing more to your business success, visit our resource centre, contact us here, or call us on 01297 639457.
