Only 57 per cent of UK SMEs rely on accountants – Could you be putting your business at risk?

UK businesses are feeling the pressure right now of having to manage rising costs and remain compliant with new regulations.

However, recent research from Wolters Kluwer has found that some UK SMEs are actively turning down a helping hand.

The Future Ready Business report revealed that only 57 per cent of UK SMEs are relying on accountants and business service providers for help.

This means that nearly half of the reported businesses are trying to manage their finances and obligations on their own, but why?

Leaving valuable advice and support on the table could, in fact, limit your growth and put your business at risk.

So, if you are a part of that 43 per cent, it might be worth knowing the valuable support an accountant can bring.

Keeping your business compliant

Tax rules and reporting requirements are changing regularly and it is easy to feel overwhelmed trying to stay compliant with HMRC.

Making even the smallest of errors or missing a submission by a few days could put you at risk of penalties, fines, interest charges and unnecessary stress.

An accountant will ensure that all this is handled correctly and on time. They will maintain accurate records, submit returns on time, ensure correct calculations and meet your VAT submission deadlines.

Giving you financial visibility

It is not an easy task to grow your business without a clear understanding of your numbers and leaving it up to guesswork could lead to overspending or missed savings.

Accountants can help provide you with accurate and up-to-date financial reporting, so you know what is coming in and going out.

Having that expert support on your side also means that you can spot rising costs and inefficiencies early and allow you to make more informed decisions about your business’s future.

Cash flow management

Keeping a healthy cash flow is important for any business, but that is often easier said than done.

Cash flow management may become a challenge for SMEs at one point or another and even profitable businesses struggle without proper planning.

An accountant will help you track your income and expenses, forecast future trends and potential cost increases and give you a better chance of avoiding shortfalls.

They can also advise you on building a cash reserve for those quieter months and when unexpected costs creep up.

Supporting your growth

It is always exciting when your business starts to show signs of growth and it is time to take those steps to scale.

However, before you jump ahead, you must be able to manage the new costs and requirements that come with it.

Hiring more staff, higher turnover, investing in new systems and increased VAT obligations and reporting requirements will put pressure on your financial systems.

Accountants are there to support your growth and can advise on budgeting for these costs and forecasting the impact on your profits.

They can also ensure your accounts are accurate and up-to-date if you are seeking funding and investment and you want to strengthen your credibility.

Outsourcing your services

The report revealed an interesting statistic that 75 per cent of UK SMEs are outsourcing at least one function.

All businesses can benefit from outsourcing services, such as their payroll and bookkeeping, as it can free up valuable time for you and your team and give you the reassurance that your requirements are being met.

How can we help your business?

Trying to take on the responsibility of your finances on your own will only put more pressure on your shoulders and take up more of your time.

Having the right accountant on hand can ease some of that demand and offer reassurance that your finances are accurate and in order.

Our professional team can support your reporting requirements, keep your books in order, stay compliant with HMRC and be that trusted adviser you can rely on.

We want your business to scale successfully just as much as you and now is the right time to ensure you are not missing out on any valuable advice.

If you want to know more about how we can help you, get in touch.