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How a Liverpool-based accountant can help you succeed

The city of Liverpool is a great place to run a business, being home to over 478,000 people and thousands of firms, not to mention the 75 million tourists who visit this beautiful city every year. When you base yourself here, you will never be short of potential customers, which makes it a prime location to build a successful business, and fast!

However, there is a potential downside; in all likelihood, you will be in direct competition with hundreds of other firms that are offering the same, or very similar, products and services as you.

You need to be nimble and work efficiently to be able to compete with, and beat, your direct competitors. There are several ways you can do this. Regardless of what approach you decide to take to making sure you are competitive, hiring a good Liverpool-based accountancy firm will make it all a lot easier for you. Read on to learn how a good accountant can help you to compete effectively and build your business quickly.

Identify emerging markets

A good accountant will start by helping you see the direction of the market. They will rely on you to stay up to date, read the trade press and watch social media, helping you to better understand your customers and what they are interested in buying today.

However, your accountant will also track what is happening within your own business. They will tap into the information held in your accounts, and help you to use it to spot new trends early.

Provided you ask your accountant to do so, they will put together bespoke reports that notify you as soon as sales of certain products start to take off. You can then examine the possibility of upping production of these to take full advantage of the upswing in interest.

When your research turns up potential opportunities, your accountant can help you to investigate whether you should be entering that new market. They can put together costing reports that show you how much it would set you back to set up a production, and work out whether you could beat your competitors’ price point.

Improve your cash flow

Using reports that your accountant provides, you can better understand seasonal demand patterns. Once you do so, you will be in a position to improve your cash flow, which will protect your business and workers, as well as keep your costs down.

Once you understand the patterns, you will be able to improve your stock levels, so you have less cash tied up in materials. Potentially it will also enable you to buy your materials at the right time, getting in just before prices start to rise to meet seasonal demand.

Always having a healthy bank balance opens up all kinds of opportunities for you and your business. It means if a competitor closes down, you will have the cash available to snap up their stock or equipment for a low price, so you can become even more competitive and boost your profits.

Work out which products generate the best ROI

Having a good handle on your finances is the key to understanding your business. The more you understand about the financial health of your company, the easier it will be for you to remain profitable.

There is no point in carrying on offering a product or service if it is no longer making you a profit. A good Liverpool accountant will help you to identify which products and services generate a good return on investment, and which ones are potentially losing you money. Tracking the true cost of production, and understanding your profit margins, will help you to focus your efforts in the right places.

Free up your precious time

All entrepreneurs sometimes struggle find enough time to get everything done. Many, especially small business owners, find that it is the day-to-day tasks that take up much of their time.

Taking care of the payroll, keeping the accounts up to date and chasing payment are all time-consuming tasks. The problem is that the time you spend doing these tasks is no longer available for you to use in a more productive way. Ideally, you want to be spending your time looking after your customers or promoting your company.

Hiring the right Liverpool accountancy firm can free you of these time-consuming yet important tasks. These professionals have the training and resources to be able to maintain look after your accounts and do so efficiently. Interestingly, hiring a professional accountancy firm can also save you money, because running your own accounts team can work out expensive.

By the time you have paid wages, national insurance, holiday, sickness and maternity pay, you end up paying a lot for each employee. When you add in the cost of training each member of staff and providing them with the hardware and software they need, maintaining your own accounts team is very expensive. Economies of scale mean that accountancy firms can to do everything your own staff would at a fraction of the cost.

A good accountant keeps your business compliant

When you hire an accountant, you know you are going to stay within the law. Your VAT and annual tax return will be taken care of, which means you can avoid unnecessary inspections by the authorities. This ensures that you are able to focus your energies where they are needed most, and build your business.

Help you to expand

As well as helping you to identify opportunities to expand and make more profit, your accountant can assist you in other ways. They have extremely good connections within the financial and business communities. This means that they stay in touch with what is going on within Liverpool, and beyond.

Importantly, they are very familiar with local funding schemes like the Liverpool City Region Local Enterprise Partnership (LEP). In many cases, they will have taken some of their other clients through various funding application processes.

A good accountant understands how to put together a successful application. They know what information the team considering your application needs, so can help you to pull together the data asked for in a format that improves the chances of your receiving funding.

Posted by Peter
June 28, 2017
Accountants

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