On average because of poor management. The AAT (Association of Accounting Technicians) have carried out a study that found small businesses are losing on average around £15,000. This is due to them not using professionals and by trying to do it themselves, by using accountants it can save you money in the longer term by reducing your tax bills and can improve financial planning.
Adam Harper, Director of Strategy and Professional Standards at AAT made this comment:
“Effective financial planning is critical for SMEs as they often lack the funds to manage an unexpected crisis. There are a number of simple things every business can do to avoid some of the most common financial pitfalls.
As we are just a few weeks into the new financial year, we are advising SMEs to make use of finance skills as early as possible to help deliver sustainable growth. Businesses can engage an external accountant to provide vital support but should also consider looking for their own ‘hidden accountant’ – that colleague who is best placed to upskill and keep your business in good financial shape on a day-to-day basis.”
The mention of a “hidden accountant” is something we frequently find is relevant. Often, within a small business, the best equipped person to deal with finances is doing something else and the job of financial management is delegated to someone who doesn’t really understand it.
When we are appointed as accountants and advisers to a business we try to help and support the person delegated with the task of “doing the books” so that he or she can better understand “how the business ticks”.
We can’t guarantee to do it every time but we can often suggest simple changes which reduce tax bills or save time, more than covering the cost of using us.
We have four members of staff qualified to MAAT level (one to FAAT) and four others currently studying for an AAT qualification.
Take advantage of our Free Initial Consultation to discuss your accountancy, bookkeeping and financial planning requirements. Contact us via our website or by telephone – (01509) 816150 one of our team will be happy to assist.