Are Your Finances Keeping You Awake at Night? 

Out of all the aspects of a business, financial worries are what is most likely to give you sleepless nights. After all, this is the lynchpin of the business — if the money is not flowing properly, nothing else is likely to work. 

The trouble is that you are probably not a financial expert — and, even if you do know what you are doing, it takes you away from actually running your business.

 

The Do-It-Yourself Method and Its Pitfalls 

When you are starting a business, it is likely that you are trying to keep the costs down as much as possible. This leads to many business owners, especially if they are one-man-bands, trying to do everything themselves, including their accounts. 

If your business is a Limited Companyyou will certainly need an Accountant when it comes to filing the year-end accounts and your personal tax returns. If you wait till then to hire an Accountant though, your job (and the Accountant's) is going to be far more complicated.  

It is better to start off with the best Accountant you can find, so there are no confusions to untangle at the last minute. 

If you are a Self Employed and not VAT registered, you may get away with the do-it-yourself method of accounting. However, the real question is whether you really are saving money and time, that way.

 

The Headaches of Finance 

The reality of business accounts is that simply recording income and expenditure is the easy bit — though still essential to get right. There are so many other things to remember, not to mention knowing exactly how they should be done correctly. 

Do you know, for instance, exactly what you can claim for expenses against your tax — and what you cannot? If you get that wrong, at best you will overpay your tax, while at the worst extreme you could end up being fined for tax evasion.  

 

The Accountant and the Entrepreneur 

Unless, like me, your business happens to be accountancy, you did not start it so you could spend time doing your accounts and chasing unpaid invoices.  

You started it as an entrepreneur.  

If you are spending time on jobs that an Accountant could do in a fraction of the time, you are not finding customers and growing your business. You are just going to be running as fast as you can to avoid going backward.  

A good accountant can save you from that, but a great Accountant can do more. The best Accountants will not only provide you with your numbers but will also explain what those numbers mean for your business and how to use them to plan for the future. 

If you find the right Accountant, it will be like having a dedicated Finance Director. 

Give us a call to find out how to sleep better at night and make your dreams more likely to come true. 

 

 

I hope this information helps your business run more smoothly through these difficult times.

Stay safe

Dora Ngoma

Director & Managing Partner

Grace Certified Accountants

Please check out my other blogs for more advice on how to run your bookkeeping and accounts smoothly. Or take a look at us on Facebook and LinkedIn for more valuable insights.