Role of an Accounting Firm in UK to Develop Your Business
An accounting firm helps a business to translate the financial performance of a business. Finance is the lifeline of any business; it is a synonym for business in the true sense. Thus it is accountants who make your business understandable to the whole world.
The role of accounting firms in the business is far beyond maintaining accounts and finance. They perform several roles throughout the business functions. Modern accounting and bookkeeping firms provide professional services, including budget preparation, consultancy services, setting up a business, funds management, tax agents, and much more.
And the advent of cloud accounting has, even more, broadened the scope of accounting firm services. The presence of online bookkeeping and accounting firms across the UK helps businesses save more and grow more. And the services are not limited to a specific industry and cater to small, medium, and large businesses.
Here are some of the roles of an accounting firm:
Bookkeeping and financial reporting:
The bookkeeping service is the basics of managing the business’ finance. Accounting firms provide professional bookkeeping service that saves your time and cost. These experts have a stronghold on various accounting software that streamlines the whole books of accounts. There are no constraints of time and place because online bookkeeping services are available. They also assist in financial reporting to HMRC –a legal requirement. The accounting firm provides a comprehensible range of services.
Tax Compliance:
Every business wants to get right on its taxes. Every business wants to pay less tax however, underpayment of taxes can land you up in trouble with HMRC. It might attract penalties and may ruin business tax returns. Thus, accounting firms also serve as tax consultants for their clients.
Cash flows improvement:
Managing cash flows is very important for any business, often overlooked by small businesses. A business without steady cash flow gets into trouble even if it appears profitable. A professional accounting firm will ensure steady cash flows to protect against risk and boost confidence among investors and stakeholders.
Setting up a business:
Many business ventures don’t work out because of the figures and forecasts that are not conclusive or lack viability. An accountant can add more value to your business plan and provide strong analytical points to it. They also give a second opinion based on their professional expertise. They provide constructive input into key areas of the business model. A plan with strong financials will appear more attractive to the investors.
Compliance:
Big business has to take care of a lot of government regulations. Handling compliance with several rules and regulations will take a toll on your time and may end up with several mistakes. An accounting firm takes up the burden on your behalf.
Buying/Selling of a business:
Mergers and acquisitions help a business to grow and pave its way to enter a new market. And if you are planning to acquire a business, no person is better than an accountant to drive you into a company’s finances. They help to assess practicalities and show a big picture about the finances.
