The impact of Brexit on small businesses: why you need an accountant

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Small businesses have a lot to deal with in 2019.

There’s the question of how they are going to navigate Brexit, but that’s not the only thing. They’ve also got Making Tax Digital to contend with. This is new legislation which means that from April 1st, the majority of small businesses over the VAT threshold will be legally required to submit their tax online.

We know that an accountant is a small business owner’s most trusted advisor. And never has there been a more crucial time to speak to one. They can offer insights and expertise to help businesses stay afloat in the coming months.

This is the third article in our series on preparing small businesses for Brexit. We’ve talked about how to manage cash flow better, and improve your chances of getting paid on time. Here’s how an accountant can help in the coming months:

Get your tax online

The Government’s new legislation, Making Tax Digital is kicking off in April. SMBs over the VAT threshold will need to keep their records online and process their VAT returns digitally. This means no more submitting paper records. HMRC will only accept returns if they’re sent quarterly and via compatible accounting software.

Unclear what you need to be doing? An accountant will be well versed in the ins and outs of MTD. They can talk you through the transition and advise on how you need to go about getting set up.

Help with your business strategy

There’s a tendency to assume that accountants are all about crunching the numbers – but their roles are a lot more nuanced than this.

They have a deep understanding of what it takes to make a business succeed. Business financials are key business success so they can help you create accurate forecasts and projections. They can also identify cost savings such as the proportion of your operating expenses that can be offset against tax.

Changes like these can put your business in a better position to ride the waves of uncertainty.

Manage your cash flow

Cash flow can make or break a small business and getting paid on time is crucial to maintaining healthy cash flow.

Accountants can handle the entire invoicing process from beginning to end, setting up automatic invoicing systems, answering any queries, ensuring all correct details are shared in good time, and chasing any overdue payments. They can also advise on payment terms, and (with the help of cloud accounting software) share business accounts quickly and easily.

However Brexit turns out for small businesses, it’s wise to prepare for it with a robust and comprehensive cash flow strategy. Having an accountant on hand can help you do just that.

Stay on the right side of the law

Business owners wear multiple hats and it’s easy for mistakes to occur when there’s so much going on.

Sometimes these mistakes can have consequences. For example, underestimating your tax bill could get you in trouble with the Government and filing your paperwork late could result in fines. Your advisor can take care of these tasks and save you time and money.

Accountants can alleviate some of the pressure and uncertainty associated with current political events. So it’s always worth speaking to them about the things that are troubling you.

A good advisor can help you grow, provide essential advice, and manage the things you don’t have the time to manage yourself. Find one here.

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