The role of the accountant in a small business by Carl Elsby of Elsby & Co.
We are fortunate in the Harborough area to have a relatively healthy local economy.
However, we also have a higher proportion of small businesses than the national average – around 86 per cent of local organisations employ ten people or fewer.
In my experience, smaller companies often have very specific financial needs. With many owners guilty of working ‘in’ their business rather than ‘on it’, the accountant’s role is crucial.
Your accountant needs to know the business inside out and what your plans and targets are, acting as a business mentor to help focus on key issues.
A locally-based accountant with a good understanding of the area’s economy and demographic will often have an advantage over a faceless national chain.
More than a number-cruncher, your accountant should form part of your company’s management structure, advising on issues from creating a tax efficient company structure to identifying problems and monitoring profit-and-loss so any potential cash flow issues can be managed proactively.
They should suggest areas for development, possible revenue streams and advise on issues such as minimising tax liability, and research and development.
Ultimately an accountant should be proactive and involved, adding value to your business so it goes from strength to strength.
Business column by Carl Elsby of Elsby & Co which is based at Harborough Innovation Centre. For more information, email email@example.com, phone 01858 414255 or visit the website www.elsbyandco.co.uk.