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Using your Liverpool-based accountant to export more

Most business owners understand the importance of diversification – especially those based here in Liverpool. According to the latest figures from the Office for National Statistics, over 14,000 active SMEs are based in Liverpool itself, with many more located in the suburbs. This means that there is always a lot of competition between companies.

Why diversification matters

One minute you can be the market leader in your area, the next a startup with newer, faster production equipment comes along and beats you on price. Suddenly, you have a big hole in your order book, which can easily lead to cash flow issues and potentially the failure of your business.

Why firms need to export more

If you only know how to sell your products and services locally, you are stuck. However, if you work in other markets, there is the potential to quickly expand those.

When some of your customers are located abroad, you are partially protected from domestic downturns. This is because in other parts of the world, the economy may stay strong. Therefore, you can continue to sell in those markets should domestic sales drop.

Why exporting from Liverpool is so easy

Being located in Liverpool puts you in a strong position to export. The city is extremely well connected. You are right next to the port and there are good airfreight options available. Plus, the extensive road network means that your product can easily be taken to other UK airports and port facilities.

How your accountant can help

Exporting their goods, and in some cases, their services, is something virtually every Liverpool-based firm can easily do. All you need is the right knowledge and support to get started and sustain your exports.

Most accountants have a good understanding of export processes

This is where the right Liverpool-based accountant can prove invaluable. An accountancy firm that already works for other exporters will have extensive knowledge of the processes involved. For example, they fully understand the taxes and tariffs that have to be paid. This is because without this knowledge, they cannot manage the accounts properly and track profit and loss. The net result is that they have a strong understanding of every step of the actually exporting process.

Use their connections and experience to identify opportunities

In addition, you can potentially tap into the expertise to get the support you need and identify new markets. Over the years, the right accountancy firm will have built up good connections that can potentially help you. For example, they will already know which organisations in the city offer the best in-depth advice and support to firms that are just getting started in the export business.

Help you navigate exchange rate fluctuations

One the biggest challenges you will face is dealing with the rapidly changing global exchange rates. Your accountant will be able to help you to better understand these issues and how they impact your bottom line. Most importantly, they will help you to deal with exchange fluctuations in the best way.

Track profit and loss properly

They will also set up your accounts so that you can properly track your cash flow for the products you export. Plus, more importantly, determine that you are actually making a profit on each one. Armed with this information, you will be able to work out when to push those products and services and when to withdraw from those markets.

Posted by Mark
September 25, 2017
Accountants

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