Do I really need an accountant?

There are good reasons for hiring an accountant at different stages of your company's growth.

Whether it is help with a business plan, forming a company, dealing with a loan application or even a government audit, Omni can make life easier for you, proving to be a worthwhile investment.

Can I afford an accountant and do I need one full time?

You don’t always need to employ an accountant full-time or hire one on a retainer basis – that is entirely within your control.

Like all small business owners who are looking to save money, you may think you can’t afford an accountant. But look at how long it would take you to do certain tasks (such as calculating taxes), and ask yourself - is that a good use of your time?

For example:

• Ø  Let’s say it takes you 20 hours to do your taxes
• Ø  Your time is worth £60 an hour
• Ø  Doing taxes yourself costs £1200

And there’s always the risk you’ve made errors – especially if you’re multi-tasking like most business owners.

However, if you get an accountant like Omni to take care of time-consuming tasks like taxes, it’s quite likely that they will cost you less per hour than your time is worth. You’ll not only have extra time to free you up to generate revenue, but you’ll have peace of mind that an expert is taking care of the details.

So what other moments during the life of a typical small business might you want to hire an accountant to help you?

Advice about your company’s legal structure

Not all businesses have the same legal structure – there are different types that are determined by a number of factors. Some might be called limited companies, limited liability partnerships or corporations, others could be sole traders or proprietors.

Sole trader vs Limited Company

You should carefully consider each type before deciding which one best suits you. Omni can help advise you on this. For example, you may do business as a sole trader or sole proprietor, working on a self-employed basis and invoicing under your own name. If this is the case, you might be able to offset some of your living expenses against tax.

However, this also means you could be held personally liable for any business-related obligations. If your business fails to pay a supplier, defaults on a debt or loses a lawsuit, the creditor could legally come after your house or other possessions.

With a limited liability company structure, it's different. As the name suggests, the liability of the business is limited to the assets owned by the business, not you personally (though there may be exceptions in some circumstances).

Omni can explain the legal business structures available and help you choose the one that best suits you.

Accountants can help with the finances

Small business accounting can quickly become complex if you do it on your own.

If you feel you're losing control of who owes you money and how much, Omni can help you get back on track.

You may also want to measure key business metrics, such as the ratio of salaries and other employee payments to total revenue. We can help by managing your payroll and producing graphs so you can see how the ratio changes over time.

Hiring an accountant when you're ready to delegate

As a small business owner, no doubt one of the things you like best is that you have control. You can set your own working hours, craft your business strategy, regulate your workload (at least to some extent) and determine your own finances. And being the master of all of these things is a wonderful and liberating feeling.

But sometimes it can stop you from delegating. Business owners can feel overworked, partly due to a reluctance to allow other people to help out. You might feel that no one can possibly know your business as well as you do, therefore nobody can handle any part of your business as well as you can.

Inability to delegate can mean you’re left feeling overworked and stressed. At some point you will have to let go, and learn to trust other people to handle some parts of your business so that you can look after the rest. Trust in Omni to help you every step of the way as you grow YOUR business.

Contact us now to find out more or call 01902 837408 for a free initial telephone consultation.