In today’s commercial environment it is essential that businesses have control of their finances. Accountancy practices that offer a whole range of services have become increasingly important. They are qualified to provide the financial support that companies must have to succeed. During the years of recession, many companies were forced to concentrate on eliminating waste to ensure their survival. With the recession receding into the past, there is now another priority; growth. That does not mean that the role of accountants has diminished in any way. Their expertise remains crucial. They can provide advice and prepare budgets and structures whereby accurate financial information, via management accounts, provides a tool to help decision making.
There are several important issues when it comes to growth and expansion. Those things require finance and a budget and cash flow that will be regularly monitored and amended as circumstances dictate. While this is not an exact science, accountants play a critical role in the exercise.
Every business needs to produce accounts; limited companies need their figures audited by law, but no company, whatever its legal status, can operate in the dark. There are statutory requirements that reach far beyond those that are related to ‘limited companies’. Her Majesty’s Revenue and Customs (HMRC) expects to receive financial information at some stage on everyone who is working, their tax and National Insurance as well as that due from employers. Likewise Value Added Tax (VAT) returns are expected each quarter.
Every company should look at their financial administration and ensure that they are in control of their affairs. It does not necessarily require great financial expertise within the organisation itself. There are accountancy practices such as www.berkeleyhamilton.co.uk that are happy to talk to any business. It may be a business that feels it is in need of help or even wanting to double check its current working practices.
One obvious thing worth consideration is the outsourcing of the company payroll in its entirety. That involves the details prepared for each employee and the BACS payment into the individual employee’s bank account. The returns to HMRC also come under this remit. Indeed, although the company itself can never ‘lose’ the ultimate responsibility for the returns to HMRC, outsourcing to a professional means there will never be any reason for concern about inaccuracies. Any queries that do arise whether from an employee or HMRC will be handled by the company processing the payroll. All the latter requires is the information on each employee at the outset and any changes along the way.
Many of the administrative tasks that a business needs to attend to have been made simple because of computers and the Internet. The storage of information in an orderly form is easy and email communication is just one of the things the Internet provides. The role of people should never be forgotten, especially those with the financial expertise to create the foundations for commercial success.
Image courtesy of Freedigitalphotos.net James Barker