Small business owners often put off working with an accountant, thinking it’s an expense they can’t afford. However, DIY accounting isn’t for everyone – especially if you are busy growing your business and don’t have time to give your accounts the attention they need. If this is the case, turn it on its head and ask yourself, can I afford not to have an accountant?
There are so many benefits to outsourcing accounting when starting or growing a business – even more so if you work with what we call a ‘hybrid accountant.’ Stick with us as we explain what a hybrid accountant means and how they can add significant value to your small business.
What is a Hybrid Accountant?
A hybrid accountant is a professional with all-around knowledge of what it takes to run a successful business. First and foremost, they know the ins and outs of accounting, but they also have a sound understanding of other business areas, like HR and IT.
A great asset for your small business, working with a hybrid accountant might save you from hiring or outsourcing to multiple experts when setting up or growing your company.
Crucially, hybrid accountants are more than just number crunchers. The support and expert guidance they can provide will be of equal value to their work to keep your accounts in check and your business compliant. They will be your business cheerleader; someone you can turn to for advice or even just a listening ear. And we’d argue that all small business owners need that person as an extension of their team.
How can a small business benefit from a hybrid accountant?
Now that you understand the role of a hybrid accountant, let’s look at some ways they can support your small business.
Startup business planning
When starting a new business, thinking about business ownership and structure is essential. Will you be a sole trader, a partnership, a limited company, a limited liability partnership, a charity, or a CIC? One of the benefits of working with an accountant is that they will discuss your options with you, explaining which will be the most suitable, how you will pay yourself and the best option tax-wise.
Your accountant will also provide startup advice and tips to set you up for success. For instance, setting up a separate bank account for your business and having different pots to help you put aside money for your Self-Assessment tax, PAYE, and VAT.
Starting a business can feel incredibly daunting, with so much to think about, and at times, lonely. Having a hybrid accountant in your corner can make a world of difference. You will have someone to support you with expert knowledge and act as a sounding board.
Getting your accounts in order
Accurate and up-to-date accounts are critical to the success of your small business. But when you’re in the throes of setting up or growing your business, it’s often the first thing that slips. It’s that task on your to-do list that you can never quite cross out because it’s an ongoing process that requires time and dedication.
By outsourcing small business accounting to a hybrid accountant, you can benefit from 100% accuracy and compliance. They will keep your business accounts up to date, ensure you meet your tax obligations on time and help you avoid costly mistakes and penalties.
As a small business owner, you will benefit from the peace of mind that your accounts are in order. You will also free up more time to focus on the parts of running your business you love most and even enjoy a better work/life balance – it’s allowed, you know!
Improving cash flow
Good cash flow is also crucial to the success of your small business, and at any given time, you should know what money you’ve got coming in and going out and when. A small business accountant will work with you to:
- Identify and reduce expenses
- Optimise tax relief
- Create additional funding sources
- Improve financial forecasting and tax planning
- Create good bookkeeping and accounting habits
All to improve cash flow for your small business.
Advising on business loans / funding
Whether you’re just starting out or looking to expand your business, you’ll likely need to access some form of business funding or take out a business loan. A hybrid accountant will advise you on your options to access the best financing for your business and not take out a loan you can’t afford to repay.
When applying for a small business loan or funding, having your accounts in order and good cash flow will also increase your chances of securing it – another reason to work with a hybrid accountant.
Support with HR, IT & other key business areas
As we mentioned before, hybrid accountants aren’t just number crunchers. Get more for your money by working with a multi-skilled professional who can also support you with other key business areas like HR and IT. Here are just a few examples of the areas where a hybrid accountant can help you.
Registering for PAYE at HMRC
A hybrid accountant with HR knowledge can advise you on the ins and outs of PAYE, including the benefits of employing staff over having freelance contractors and the legal aspects, and help you set it up.
Registering with the pension regulator for workplace pensions
If you’ve decided to employ staff at your small business, it’s crucial that you register with the pension regulator. Even if staff opt out, you must register to avoid penalties. Again, this is something a hybrid accountant will support you with.
Registering with ICO to ensure you avoid penalties for non-compliance
Have you registered your small business with the ICO? If you are handling and processing other people’s data, you’ll likely need to register as soon as possible to avoid potential penalties. A hybrid accountant will help get you clued up on your GDPR and legal obligations.
Streamlining your business processes & systems
Could you improve your business performance and efficiency through automation and moving to the cloud? A hybrid accountant with sound IT knowledge will help you improve and streamline internal processes and systems and even train your staff to use cloud-based accounting software.
Changing your accountant
While we imagine that many people reading this article will be starting a new business and considering outsourced accounting, there are also likely some of you who already have an accountant but aren’t receiving the level of service this article details.
At Kale Accountancy Ltd, we believe your accountant should be an extension of your team – someone you can reach out to at any point for help (without the fear of being charged for a simple conversation) and someone you are comfortable asking questions and seeking advice from. Your accountant should know your business inside out and want it to succeed. It also helps if you get along. Of course, we’re all for being professional, but an element of friendship can be so important to building long-term business relationships that go the distance.
If you can’t relate to this with your current accountant, it’s time to consider switching to a hybrid accountant. Changing your accountant is easy. Contact us and we’ll talk you through the steps.
Hire a hybrid accountant for your small business.
Kale Accountancy Ltd isn’t your average accountancy firm. CEO Lillian Oliveri is a hybrid accountant with a wealth of knowledge and experience in a wide range of business areas, including IT, HR, Law, and Business Management. Book a free 30-minute consultation to explore the benefits of working with a hybrid accountant and learn how we can support your small business.
