Start Up SME: What Are My Accounting Options?

Start Up SME: What Are My Accounting Options?

Almost every aspect of business ownership is interesting, except, perhaps, for accounting – which can seem to be mundane, tedious and time-consuming for many. If accounting is not one of your fortes, it is possible that you perceive accounting tasks as a necessary drudgery you can’t do without. However, accurate bookkeeping is crucial to the overall success of your business. Besides, precise accounting is a legal requirement that is fundamental to monitoring and managing the cash flow of a business effectively.

If you are setting up an independent business or a small-medium enterprise, you would need to have a clear idea about your accounting choices that don’t interfere with your business’s growth prospects while ensuring timely and accurate record-keeping. Let’s quickly go over your options in account keeping.

Can I Do My Accounts on My Own as a Start-up SME?

Let’s start the discussion with the DIY option. While the do-it-yourself method might be the first option that comes to your mind, it isn’t essentially the most advantageous one for your business. It could seem like a low-cost option. However, it demands a great deal of impeccable organizational skills from your end. You need to be completely committed and willing to spend a considerable amount of time ensuring your records are up-to-date. Even a seemingly simple mistake can spell disaster if you are trying to balance your accounts at the end of the week.

If you are keen on doing it yourself, you should invest in decent accounting software, keep yourself updated with the latest tax rules and HMRC regulations, and reign in on your business expenses. A pro-tip – remember that the devil lies in the details. So, pay attention to everyday tasks like processing invoices, recording every single expense regardless of the value and salary.

A DIY method is a viable option if you have a fundamental understanding of accounting. It is a good option, but certainly not the easiest one.

Working With a Cloud Accounting Partner

The convenient alternative is working with a cloud accounting partner who can streamline the entire account keeping of your business. Let’s look at some of the benefits of working with an accounting partner:

Knowledge Expertise:

The first and foremost benefit you derive from working with an accounting partner is the subject expertise you can take advantage of. Your business can benefit from the in-depth knowledge of taxes and regulations that experienced accounting partners come with. A cloud-based partner can help you do away with some of the mundane and time-consuming tasks involved in accounts management.

Ease of Accessibility:

One of the major advantages of cloud-based accounting facilities is the ability to access real-time data from any location—traditional accounting stores transaction information on local storage devices such as a hard drive or a local server. At the same time, cloud-based accounting keeps track of real-time information on the cloud so that it can be accessed by SMEs from any location. This ease of access helps in making crucial decisions on time.

Impeccable Accuracy:

Traditional forms of accounting rely on manual input of data which is prone to human errors. Artificial intelligence or OCR-based cloud software can help refine the accuracy of accounting transactions and reduce the overall time spent on cross-verifying cash flows.

Improved Security:

When it comes to business accounting, security is one of the major focal points to concentrate on. If you choose to undertake your SME accounting on your own, you would require an in-depth understanding of cyber-security to protect your sensitive financial information from the prying eyes of criminals. Cloud-based accounting services help protect sensitive data, generate auto-backup of transactions, and prevent unauthorized access to data.

Scalable for Growth:

Cloud-based accounting service is a viable option only when it is scalable for growth. Your accounting platform should make it easy for your business to grow. It should ideally have add-ons and features that can be tailor-made to suit your specific business needs.

Wrapping Up:

Regardless of whether you are an independent business owner, setting up an SME or partnership, you would require the services of a reliable and experienced accounting partner who can make the entire accounting process easier and legally compliant. While accounting is not everyone’s cup of tea, accurate accounting is a legal requirement. That’s the reason why choosing a cloud-based accounting services partner is the smart move for most business owners who want to leave the legal hassles to the experts while focusing solely on running the business to success.

About the Author:

Nik Patel , A specialist accountant and tax adviser for freelancers, contractors and small businesses. Expert in business growth and development strategies. A renowned tax expert for owner managed businesses and contractors.