Hire an accountant – and boost revenue by 11.5%!

In an age of cloud accounting, it’s never been easier to keep on top of your books. Indeed, according to a recent report, some 21.4% of SMEs don’t use accountants and bookkeepers. If you’re one of them, you may want to hire an accountant. The same report found that SMEs that do use accounting and bookkeeping services increase their revenue by 11.5%. This goes up to 12.8% when you consider only medium-sized firms. Clearly, when you don’t hire an accountant it can be a seriously false economy!

What is the new report?

The new report has been released by software firm Intuit Quickbooks, working with Dr Chris Brauer from the University of London, Symmetry Research and the Association of Chartered Certified Accountants.

The research looked at the correlation between the use of accountancy services and revenue growth. The study surveyed 4,000 businesses, including sole traders, micro, small and medium businesses.

Why hire an accountant?

The research results suggest that SMEs of all sizes benefit when they hire an accountant. The following table gives the average increase in revenue per year for SMEs using professional accounting services.

What accounting services are firms using?

While most businesses are motivated to hire an accountant to save money, firms of different sizes rely on proportionately different accountancy services. For example, sole traders and smaller firms tend to mostly use foundational services such as tax return preparation, tax planning and bookkeeping. Larger firms were more likely to also use financial management support services such as budgeting and forecasting.

A good accountant will be able to advise on which services are best for you. However, when you do hire an accountant who cares about your business, you can expect to see legitimately lower tax bills, money saved by avoiding compliance issues and penalties, plus improved business planning. You can also save a lot of time.

The issue of penalties is an important one. In recent years, the tax system has undergone – and continues – to undergo significant changes. One good example is the shift to Making Tax Digital. When you hire an accountant, you can expect them to help make sure your taxes are compliant. The research found that, over the lifespan of the average SME, they pay an average of £9,000 in tax penalties. Accounting mistakes account for more than an additional £8,300.

I want to hire an accountant. What next?

If you haven’t yet hired an accountant – or you are unhappy with your current one – we can help. THP has over 50 years’ experience of serving SMEs, helping them to grow and flourish. With multiple branches across London and Essex, we’re small enough to care but large enough to offer you expertise in everything from Self-Assessment Tax Returns right through to audits, payroll outsourcing and financial due diligence services. You can learn more about what makes us different here.

Hiring an accountant couldn’t be easier. Give us a call today or fill in the form below and we’ll tell you how our services could more than pay for themselves.