Why choosing a bad accountant could signal the end of your business
As a business owner, there’s a lot to think about. 20% of small businesses fail in their first year, while 50% will have failed by year five.
A logical step to keep your business on the right track is to hire an accountant. Unsurprisingly, we’re not all great with numbers. And bringing someone on board to take care of your finances can be helpful. But there is such a thing as a bad accountant.
Tasks like self-assessments, VAT, PAYE, corporation tax, and pensions are all essential to keeping your business above board and successful. But if you’re dealing with an accountant that doesn’t communicate with you, misses deadlines, gives bad advice, or generally doesn’t know what they’re talking about, your business will be the one to suffer.
Filing paperwork incorrectly or missing important deadlines could add extra strain to your business’s finances. If your accountant isn’t up to scratch, you run the risk of having to pay fines to make up for missed deadlines. Or you could find yourself scrambling to find large chunks of money to make up for missed payments, inaccurate calculations, or paying the incorrect threshold.
If you get into trouble financially, you also risk harming your business’s reputation. If you need to go back to your clients and ask for a year’s worth of VAT to cover what you owe, you’ll appear unprofessional and risk losing their custom. This would then lead you into even more financial trouble.
Similarly, if you’re spending a lot of time worrying about finances, your customer service could take the hit and you could ruin your reputation that way.
Tackling financial trouble will be both stressful and time-consuming. If someone makes a mistake, chances are it won’t be an overnight fix. And as a business owner, despite it being your accountant’s responsibility, most of the weight will fall onto you.
If things start to unravel in your professional life, it’s likely to spill over into your personal life. Your family or loved ones will also feel the strain if you’re always absent or preoccupied. And if a lot of your personal finances are wrapped up in the business, you have the extra worry of losing your personal possessions or family home.
Your stress and worry are bound to trickle down to your staff. They will be able to sense when something’s wrong and it’s likely to kill the morale of your whole team. You won’t be able to be an uplifting, motivational leader if you’re constantly worrying about whether or not you’ll make it through the next financial year.
Partnering up with the wrong accountant can prove detrimental to your business. And as it’s your business, you’ve got the most to lose. Losing your livelihood due to financial troubles won’t just be disappointing; it could also wreak havoc on your personal finances and impact on your family and future.
Make sure you find an accountant who knows what they’re talking about, gives accurate and useful advice, and can help you out in other areas of business. All these are signs you’ve found yourself a good accountant.
At Big Hand, we take care of your business’s finances so you can focus on your growth and development. Feel free to get in touch with us on 0161 327 2911.