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Experienced Chartered Accountants
Does Your Small Business Need to Hire An Accountant? Choose The Right Accountant With Xero Accounting Software
Running a small business comes with its share of challenges, and managing finances is often at the top. Like most business owners, you may be pondering the need for professional advisors. Should you hire an accountant or a bookkeeper? When is the right time to hire one? This guide aims to help you make that critical business decision.
Why Consider Xero for Your Accounting Needs?
Xero is a leading cloud-based accounting software prevalent in the UK, designed to make small business accounting efficient and straightforward. Whether you’re a sole trader or running limited companies, Xero UK can cater to your specific business requirements.
The Dilemma: Accountant or Bookkeeper?
Many small businesses often wonder if they need an accountant or a bookkeeper. While bookkeepers handle tasks like data entry and invoice management, an accountant can add value by providing strategic advice on growing small businesses.
Key Considerations: When is the Right Time to Hire an Accountant?
Business Plan to Company Formation
Right from the start, an accountant can help you formulate a robust business plan, decide on the legal structure, and assist with the financials of setting up your new business.
Cash Flow and Financial Information
An accountant can help you understand your cash flow, manage invoices and ensure that money comes into the business as expected.
Tax Return and HMRC
One of the most crucial times to hire an accountant is during the tax season. They can save you time and money by ensuring accurate tax returns, thus avoiding penalties and fines.
Business Loan or Overdraft
Suppose you’re considering a business loan or overdraft. In that case, an accountant can often provide invaluable advice and prepare the necessary financial statements.
Selling Your Business
When it’s time to sell your business, an accountant can make life easier by preparing your business’s details for a potential sale.
Benefits of Hiring a Xero Accountant
Saving You Money
A good Xero accountant can help identify cost-saving opportunities and tax benefits, ultimately saving you money.
Adding Value to Your Business
Beyond mere number-crunching, an accountant can add value to your business by giving you advice that helps you make sound business decisions.
Choosing the right accountant who uses Xero can save you time by automating many accounting processes letting you focus on running your business.
Level of Expertise
The benefits of hiring a well-versed accountant in Xero include a high level of expertise in the software and current financial regulations.
Getting the Most Out of Xero and Your Accountant
What Tasks Can a Xero Accountant Handle That I Can’t?
While Xero is designed to simplify tasks like invoicing and bookkeeping, a skilled accountant can handle more complex issues such as tax planning, business consulting, and financial analysis. An accountant can often do what the software cannot: provide personalised, expert advice tailored to your business needs.
Can I Switch to a Xero Accountant Mid-Year?
Yes, you can switch to a Xero accountant at any time. However, transitioning might be smoother at the end of a financial quarter or year, as this aligns better with tax deadlines and financial reporting.
How Can a Xero Accountant Help with Payroll?
If your business has employees, payroll can become complex. A Xero accountant can integrate payroll into the system, ensuring that all employee payments and tax withholdings are accurate and timely.
How Secure is My Data with Xero and an Accountant?
Xero employs robust security measures to protect your financial data. When hiring an accountant, ensure they follow stringent security protocols to keep your business information safe.
How to Choose the Right Accountant for Your Small Business: Why JacRox?
- Qualifications: JacRox is a division of Jack Ross Chartered Accountants and a Xero Gold Partner.
- Recommendations: Our excellent client feedback reflects our dedicated, bespoke services
- Compatibility: JacRox understands your business needs and can offer tailored services.
Conclusion: Xero and Your Accounting Needs
With the click of a button, Xero software enables you to manage your business data quickly and easily. However, hiring a Xero accountant can add even more value as your business grows by offering a level of expertise that software alone cannot provide. Use the contact form below, and one of our JacRox Xero specialists will be in touch.
Accountants and bookkeepers using Xero can provide services such as setting up bank feeds, creating budgets and reports, and reconciling accounts automatically with bank statements/transactions from multiple sources like banks or credit cards. They are also able to customise invoices for quick payments by customers as well as track inventory accurately.
Before hiring an accountant who uses the software, ensure you clearly understand what type of professional accounting advice you need. You must have all necessary financial documents ready before beginning work with the new accountant.
If your small business has grown beyond a certain point in terms of sales or number of employees, it may be beneficial for you to hire an experienced accountant who is familiar with using cloud-based accounting software like Xero so that they can manage financial information more efficiently.
We were instantly impressed with their approach to accountancy
Mark Moppet | Managing Director
JacRox is transformational, saving us hours a week in mundane tasks, making life easier.
Duncan Ogilvie | Managing Director
On every occasion we’ve sent an enquiry they’ve been straight back to us with an answer
Paul Mulderrig | Managing Director
Xero businesses we’ve helped achieve great things