Do You Need an Accountant for a Small Business?

Running a small business requires passion, dedication, and strategic planning. However, amidst the myriad of responsibilities, managing finances often poses a significant challenge.

As a small business owner, you may find yourself juggling multiple roles—from marketing and sales to operations and customer service—leaving little time to delve into the intricacies of financial management.

This is where the expertise of an accountant can make a substantial difference.


How Can an Accountant Help Your Business?


An accountant is more than just a number-cruncher; they are a strategic partner in your business’s success. Here’s how:


Financial Clarity

Accountants provide accurate financial records and reports, offering insights into your business’s financial health. This clarity helps in making informed decisions and planning for the future.


Tax Planning and Compliance

Navigating tax regulations can be daunting. Accountants ensure you meet deadlines, maximise deductions, and comply with tax laws, potentially saving you money and avoiding penalties.


Business Growth Strategies

Accountants offer strategic advice on budgeting, cash flow management, and forecasting. This guidance is invaluable for expanding your business and navigating economic challenges.


Risk Management

Accountants help identify financial risks and implement controls to mitigate them, safeguarding your business’s assets and reputation.


What’s the Difference Between an Accountant and a Bookkeeper?


One makes sure the numbers add up, and the other makes sure you add up the numbers! Joking aside, while both manage financial data, their roles differ significantly:

  • Bookkeepers focus on day-to-day transactions, recording receipts, preparing invoices, and reconciling accounts.
  • Accountants interpret financial data, provide strategic insights, perform audits, and advise on financial planning and compliance.

What Can an Accountant Help You With?


Accountants offer a comprehensive range of services tailored to small businesses:


Financial Reporting

Preparing financial statements including balance sheets, cash flow statements and income statements.


Tax Services

Filing tax returns, advising on tax planning strategies, and representing your business when dealing with tax authorities.


Financial Analysis

Interpreting financial data to identify trends, opportunities for cost savings, and areas for business growth.


Business Advisory

Providing strategic advice on business expansion, funding options, and profitability analysis.


Certified vs. Chartered Accountants: Which is Suitable for a Small Business?


For small businesses, the distinction between certified and chartered accountants is crucial:

  • Certified Accountants (e.g., AAT qualification) are proficient in day-to-day accounting tasks, tax compliance, and basic financial analysis. They are suitable for routine financial management.
  • Chartered Accountants (e.g., ACCA, ACA qualifications) undergo rigorous training and are equipped to handle complex financial strategies, auditing, and international financial reporting standards. They are ideal for businesses requiring in-depth financial expertise and strategic planning.

For most small businesses, a certified accountant provides adequate support, while chartered accountants are beneficial for businesses with complex financial needs or seeking international expansion.


How to Find a Good Accountant

Choosing the right accountant involves careful consideration of several factors:



Look for accountants with experience in your industry or similar-sized businesses.


Accreditations and Certifications

Ensure they are accredited by recognised professional bodies and stay updated with industry standards.


Range of Services

Assess if they offer a comprehensive suite of services beyond basic accounting, such as tax planning, financial advisory, and business consulting.



Balance the fees against the value they provide and potential cost savings from their expertise.


Business Growth Support

Consider how they can contribute to your business’s growth through financial insights, strategic planning, and performance improvement.


When Should You Get an Accountant?


It’s advisable to engage an accountant early in your business journey to establish solid financial practices and systems.

However, if you’re already operating and experiencing growth or facing financial complexities, hiring an accountant becomes even more critical.

They can help streamline operations, enhance financial visibility, and position your business for sustainable growth.


CRM Accountants 8 Step Business Improvement Programme


For small businesses seeking structured growth and performance enhancement, we offer our proven 8 Step Business Improvement Programme:

  1. Plan
    Set clear business goals and develop strategies to achieve them.
  2. Measure
    Monitor monthly performance against forecasts and key performance indicators (KPIs).
  3. Review
    Evaluate annual performance and ensure compliance with HMRC requirements.  
  4. Evaluate
    Analyse current performance trends compared to previous years.
  5. Compare
    Benchmark your business’s performance against industry standards and competitors.  
  6. Value
    Assess how financial performance impacts the overall value of your business. 
  7. Analyse
    Calculate potential profitability improvements and identify areas for efficiency gains.  
  8. Improve
    Develop and implement a tailored performance improvement plan to achieve business goals.

This programme is a tailored solution designed to help you achieve your personal and business goals and aspirations. You decide how much support and input you want and which steps you need.


Summing up


Hiring an accountant can be a game-changer for small businesses, providing accuracy, compliance, and strategic insights.

Beyond managing books, accountants act as financial advisors, helping you make informed decisions and optimise performance.

Engaging an accountant early or as financial complexities grow ensures a strong financial foundation and leverages growth opportunities.

An accountant will allow you to focus on your core operations while they handle the financial intricacies, ensuring your business thrives. 


How CRM Can Support Your Small Business


CRM Accountants are committed to helping small businesses thrive through personalised financial solutions and strategic support.

Our expertise spans financial management, tax planning, and business advisory, empowering you to make informed decisions and achieve long-term success.

Plus our 8 Step Business Improvement Programme can help you achieve better results by focusing on key performance metrics. It provides a structured approach to planning, measuring, and improving performance, enabling you to take control and consistently progress towards your goals.


Next steps


If you’re looking for an accountant for a small business, you can count on CRM. Get in touch by completing our contact form or give us a call at 01865 379272. We’re here to simplify your financial journey.

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