What can an Accountant do for a small business?

WantToBeSE

I am just wondering if I need an accountant when I take over a business next month.


I am not sure what they can do or how they can help me.


Sorry for the newbie question.

Opinion

WantToBeSE wrote: »

I am just wondering if I need an accountant when I take over a business next month.


I am not sure what they can do or how they can help me.


Sorry for the newbie question.

You have surely employed an accountant to go over the books and assist with due diligence? Surely...

phill99

If you can't answer your own question, don't expect to be in business this time next year.

CKhalvashi

Opinion wrote: »

You have surely employed an accountant to go over the books and assist with due diligence? Surely...

Accountant = Checking the books with a fine toothcomb.

Solicitor = Due Dilligance, checking existing contracts etc.

Both are very useful, and can be worth their weight in gold (a lot more than you're paying them) if anything goes wrong afterwards, that they should have picked up on.

Last time round, I saw the solicitor first and last, and the accountant in the middle. This (from what I gather) is the most common way of doing things.

Carl31

If you can safely say you understand a balance sheet, income statement and how cash flow works, then maybe you don't know one

but the reality is accountants can offer you more than just doing your taxes, we can provide invaluable insight into your finances that ensure you stay functioning as a business, both from a financial and legal perspective

I have worked with some small organisations, and I am sometimes truly shocked at how little some business owners or managers know about basic finance, it's actually worrying

WantToBeSE

Ignoring the useless answers. Obviously some people think that everyone is born knowing everything about business.


Thank You Carl for your answer. I understand the basics of things like balance sheets, cash flow etc. The person I am taking over from is helping me by going through everything with me, and says that I shouldn't need an accountant really.

colino

If you are taking over a substantial going concern and you don't have the background yourself, you should instruct commercial lawyers and accountants to conduct due diligence on your behalf. Make sure you are clear in what you expect for the fee. Any old historical accountant will run his pen over the figures and confirm they add up, but do they make sense for the type of business? Equally internal contracts (employment etc.) and future sales may well all be on paper, but were they constructed last month for this sale?
Depending on the size of the business and the risk it exposes you to will lead you to an appropriate amount of duedil. The basics need answered: Why is the business for sale, how has it been performing, is this an accurate prediction of how it will perform for a new owner, is the price reasonable for the whole package.

trailingspouse

Having read all of the replies to your questions, I'm struggling to find any useless ones. They are all straightforward and to the point.

But to make it clearer -

Yes, yes you do. They will help you to avoid making a complete pr@t of yourself.

If (and it's a big if) you have tons of experience in this line of work already, have run a similar business (or any business) successfully in the past, and have an in-depth knowledge of RTI, VAT, NIC, and a dozen other abbreviations, then maybe you could get away with it. But I'm guessing if you had all of this experience, you would already have an accountant and be very aware of what they can do for you.

pleasedelete

If you are going for a personal mortgage etc in the future then you may need accountant verified accounts.

longforgotten

I work for an accountant and prepare accounts.


If I went into business I would still have an accountant. As said before a good accountant is worth their weight in gold.

Mistral001

WantToBeSE wrote: »

Ignoring the useless answers. Obviously some people think that everyone is born knowing everything about business.


Thank You Carl for your answer. I understand the basics of things like balance sheets, cash flow etc. The person I am taking over from is helping me by going through everything with me, and says that I shouldn't need an accountant really.

The OP described herself as a "newbie" in he first post and then complains when posters reply accordingly.


PS. in my opinion there are no useless answers given by posters here.