The role of accountants in the path to recovery for UK Small and mid-size enterprises

Role of accountants

December 23, 2020

As UK Small and Mid-Size Enterprises (SMEs) navigate the path to recovery in an ever-evolving business landscape, the role of accountants becomes increasingly vital. In this article, we'll explore how accountants serve as strategic partners, helping SMEs chart a course to financial stability, growth, and prosperity. Discover the invaluable contributions these financial experts make to the resurgence of SMEs in the UK.

The Account is considered as the base and pillar of any organisation. The accounting information should be carefully handled by a concerned person as a responsibility or the wrong information may lead to unfruitful result. The accounting services are cost effective, improve efficiency and practice management because of which it is always a wise decision to outsource the accounting work.

A business should have the strong accounting base to flourish in the market. The exact financial information will be provided by the business accounting, which helps in making business decisions. The financial analysis will be benefitted with the information received and strategies can be prepared with proper execution of planning helping in the growth of the organisation. 

The below points indicate about the qualities of perfect accountant in UK accounting firms:

  • - Always make a habit to update all financial or non-financial records on day to day basis
  • - Have a proper record of your expenses and keep a close watch on it.
  • - For recording the transactions and payment of employees, set up a Bookkeeping and Payroll system respectively.
  • - Always reassess the methods on periodical basis because sometimes it helps in changing the strategy because of which more time can be invested in business and more money can be saved due to it.
  • - With the exact information of profits, losses and gross margins, we can analyse the company strategy before future planning. Therefore, it is must to keep proper records for it.
  • - The proper record should be maintained for tax related information which includes sales tax, import tax or tax obligations.
  • - Always take smart decisions which will help companies in cost, time and money saving.
  • - Proper financial planning.

The efficient planning and work-flow management are required to improve the processes. The new tools should get introduced for payment process and accurate reporting. There should be better control and clarity on financial processes as this will help in doing accurate financial analysis and there will be improvement in turnaround time.

Role of accountants:

On the path to recovery for UK Small and mid-size enterprises, the role of accountants is mentioned as below:

  • - In the maximization of profits, an exact financial planning will play a major role.
  • - To know about the growth of business, financial statement plays a major role as this will help in making strategy of the company.
  • - Cost accounting will help management to plan for the future by analysing the exact cost of company products and resources.
  • - The fund flow analysis will provide a better clarity in understanding whether compared to last year, the funds were utilized properly or not.
  • - The analysis of Cash flow will help in analysing the cash from one period to another.
  • - Budgetary control will help in future financial needs estimation and arrangement can be made according to an orderly basis.
  • - In representing the capital properly with asset value, Revaluation accounting will help.
  • - For effective control of business operations, Ratio analysis paves the way.
  • - Historical cost accounting is used to evaluate performance and it will help in comparing with pre-determined costs.
  • - By using statistical techniques, management problems can be removed.