Why you should work with regulated financial professionals

Financial management. Successful businesses need to manage their finances properly. You will want good advice about how to organise and control your finances and plan for future growth. If you don’t have a financial background you will rely on your bookkeeper and accountant. You will want to know they have up-to-date knowledge of the latest good practices, regulations and requirements. Professional bodies require their members to hold qualifications and take part in continuing professional development or CPD. 

 

Growing with your business. As your business grows, you will soon struggle to keep track of your finances using spreadsheets on your laptop. In addition, the government’s Making Tax Digital initiative for VAT and self-assessment tax requires suitable software. 

 

You might work with an inexperienced bookkeeper to update your records and an accountant to complete your annual tax returns. However, you also need good financial processes to help you run your business day to day. Experienced professionals will make sure you always know how much money you’re making and what you’re spending. 

 

The LEOBS team recommends Xero accountancy software in the cloud. It’s easy to use and you can access it wherever you are. We also meet with our clients regularly to make sure their business finances are running smoothly. 

 

Efficiency. Many of our new clients simply have a drawer, shoe box or carrier bag full of receipts. They don’t have time to record and file them, and things soon get out of hand. 

 

If you’re in this position, your cashflow, VAT returns and payroll management could suffer. You could also miss opportunities to reduce your tax bill because you aren’t claiming all your allowable expenses. 

 

With the right back-up and software, it’s also much easier to create quotes and invoices and keep track of your bank accounts, all in one place. Everyone can see the same information, so if you have any questions, helpful advice is only a phone call away. What’s more, experienced professionals will quickly notice any unusual transactions or errors, so you can respond, if needed. 

 

Compliance and control. Simply checking your bank balance doesn’t tell you whether your business is healthy. It’s important to understand what your figures tell you. With professional help you can have a range of useful financial reports that show you all the key information you need. 

 

For example, you’ll know who has yet to pay their invoices and which bills you must settle. You can set budgets and see projections of your income and expenditure. When you’re ready to expand you’ll have reliable information to help you gain investment or a loan. 

 

If you already have employees or are thinking of recruiting, you must handle employee payments properly. Managing salaries, employer tax liabilities, National Insurance Contributions (NICs) and employee benefits can become complex. Financial professionals can handle your weekly or monthly pay runs and all the necessary paperwork for HMRC. You’ll have a full picture of your tax and NICs payments. If you are a contractor or use contractors affected by the Construction Industry Scheme (CIS) they can help you meet these requirements promptly too. 

 

Tax planning. With accurate financial records and professional advice, you can make informed decisions to help minimise your tax liabilities. You can also take full advantage of your tax allowances.