Whether you're running a start-up or an established brand, you have been tempted to cut corners. And in fact, you have already cut some—one of which might be hiring a brand accountant.
Your reasoning is simple:
- You were pretty good at math in school.
- Accounting is easy: money in, money out.
- Hiring an accountant for your brand requires capital you just don't have right now.
- There are things you just can't do: accounting isn't one of them.
- For now (at least until you get more revenue coming in), you'll take care of your business's books for yourself.
How did I know you were thinking that?
Because lots of brand builders (especially new ones) do.
And how do I know it's all a bad idea?
Oh, let me count the ways…
Without a Brand Accountant, You're Rolling the Dice
Without a brand accountant, you're not only risking the loss of potential revenue, you're risking the loss of profits due to noncompliance, as well as the loss of your entire business due to gross negligence in tax and reporting matters.
Here are some of the areas in which a brand accountant is necessary for efficient business operations:
An Accountant will Ensure you're Tax Compliant, including GDPR
The average small business in the UK spends £5000 and three weeks' time ensuring that their companies are tax compliant (Enterprise Nation)—and those numbers are bound to skyrocket with the new GDPR (General Data Protection Regulation) rules going into effect on 25th May, 2018.
These regulations are intended to protect the personal and confidential data of individuals within the EU (European Union). Only 7% of affected companies are currently in full compliance (Crowd Research), and 60% are expected to miss the deadline. If your business is not in compliance, you will be subject to fines equal to 4% of your annual revenue.
A brand accountant will not only point you in the right direction (to make sure you're compliant), but will be able to properly file any tax penalties you're responsible for.
Need help becoming GDPR compliant? Then get into the Brand Builders Club as soon as possible, where HR expert Leanne Pogson has recently published compliance templates for controllers and processors. Email me at [email protected] and I'll get you started.
Having an accountant for your brand will not only eliminate the time you and your team are spending on tax compliance, it will eliminate penalties and ease your mind.
A Brand Accountant can Systemise Bookkeeping
"Keeping the books" is a laborious task, and one that falls to the wayside when you get busy with business. It's particularly bothersome when you're doing it all on paper.
An accountant will know the best way to automate the bookkeeping for your specific operation, streamlining the way you track expenditures and earnings. We often talk about how important systemisation is to the building of your brand. Well, that goes for accounting, too. Add a professional accountant to the picture, and you've got more time and energy left for building your brand—instead of keeping the books.
An Accountant will Maximise Allowances
Quick! Off the top of your head, what are your company's current business expense reliefs, R&D tax credits, and allowances? Without an in-depth knowledge of the tax credits available to your business (which changes on a yearly basis, by the way), you will pay more tax than necessary. That cuts directly into your business's revenue.
A Professional Accountant can Help Secure the Best Financing
As a small business or start-up owner, your criteria for business financing is probably something like, "Whoever will give me the money." When you get a professional accountant involved, he or she can't look at a number of different financing options and recommend the most cost-effective one based on things like your cash flow situation, interest rates, repayment options and funding requirements.
You can Enhance your Bottom Line with the Help of a Brand Accountant
Are all of your business investments resulting in dividends? Is every employee helping you to turn a profit? Is your spending targeted, purposeful and profitable? Could you be reinvesting revenue in a more forward-thinking way? Can you afford what you're spending, and could you be turning a better profit? These are all questions that a brand accountant can answer—because it's always easier to see what's going on in a business when you're observing from outside the business.
I trust that you've deducted that every brand needs an accountant. When it comes to filing taxes, keeping the books and increasing profit margins, these professionals will not only save you time, they will give you peace of mind and help you to maintain your business's good standing.
Need a good brand accountant? Or want more information about GDPR compliance? Then I invite you to look into joining the Brand Builders Club as soon as possible. We don't accept everyone who enquires, and space is limited. Contact me today at [email protected] and we'll set up a call to determine if the club is right for you.