Accountants can provide a wealth of support to your business, outside of simply balancing the books. A great accountant understands your business needs, providing the advice you need to maximise success and allowing you to focus on what’s important. From the start-up phase to a future exit strategy, the right accountant can provide strategic support throughout every key milestone. That’s why it is essential to find an advisor who aligns with your business’s needs and goals, setting you up for success from the beginning of your journey and enabling you to scale and grow.
What makes an accountant right for your business?
Choosing an accountant is a crucial, albeit challenging, decision – especially for smaller businesses. Early on, a skilled accountant can save you time and help your business thrive, while a poor choice could cost money and create future problems. Your accountant should be more than just a bookkeeper; they should be a partner who adds value by securing grants, government funding, or tax relief.
A key factor to consider is whether the accountant holds the right qualifications and is regulated by professional bodies like The Association of Chartered Certified Accountants (ACCA) or The Institute of Chartered Accountants in England and Wales (ICAEW). A regulated accountant provides your business with protection, as these organisations enforce standards of conduct and performance. Regulated firms also carry professional indemnity insurance, offering extra security if they provide negligent services or advice.
Another often-overlooked aspect is how well the accountant fits with your business, sector, and model. An accountant who shares characteristics with your firm can be advantageous, as they likely understand your specific needs—particularly if you’re an owner-managed business. They should demonstrate their expertise and experience with businesses like yours. You are entitled to request testimonials from clients who are similar in size to your business, or are a similar structure, so you can see that the accountancy firm relates to the obstacles and challenges you might face.
Understanding your business needs
Building a long-term relationship with your accountant allows them to gain a deep understanding of your business, enabling them to offer tailored advice and solutions as your business evolves. A solid partnership enables your accountant to become familiar with your financial history and long-term goals, aligning their advice with your future aspirations. Acting as active partners, they can guide your key decisions, maximising profitability, minimising tax liabilities, and optimising cash flow.
Having the same accountant throughout your business’s life cycle ensures support at all key milestones. During the startup phase, having an experienced advisor is crucial – they can assist with structuring your business, tax registrations, and financial planning. As your business grows, your accountant can help manage cash flow, secure funding, and facilitate expansion.
Ensuring long term success
If your growth plans include a merger or acquisition, an accountant can provide valuation expertise and due diligence services, ensuring a smooth transition. Their deep knowledge of your business, developed through a strong relationship, minimises risk during these processes. Finally, when you’re ready to exit, a long-term accountant can prepare you for a sale or transition, maximising value and supporting your business’s success even after you leave.
This article is written by Andrew Moss, a corporate partner at DSG Chartered Accountants.
