Why you need a small business accountant when relocating your company to the UK
The UK is one of the strongest magnets for small and medium-sized enterprises (SMEs) looking to expand their reach to a more business-friendly global environment.
It is easier to do business in the UK than in any other major European economy, thanks to trade ties with the rest of the Eurozone, a transparent political and regulatory environment, strong local labour skills, good infrastructure, as well as high quality of life and educational standards.
The UK also has a highly favourable tax regime for inward investing companies, offering the lowest corporation tax rate in the G7. If you are thinking about growing your business in the UK, an expert accountant’s input will become more significant than ever before.
Why you should hire an accountant for your small business
SMEs are fundamental to a successful economy. They are engines that propel growth, generate employment and lead innovation. In addition, they tend to create and implement new technologies and business models in service of a better future. The World Bank states that they make up roughly 90% of businesses globally and account for 50% of employment worldwide.
Covid-19, however, has had a seismic impact on small businesses. Given their thinner liquidity reserves they are vulnerable to market disruption, especially when workforces are subject to strict lockdown measures. As a small business owner, bootstrapping and cutting costs are all part of the process, but in the long term, one crucial place to invest is in your accountant.
Smaller accounting firms, also known as small medium-sized practices (SMPs), are one of the most trustworthy consultants for small businesses. Seeing as small businesses have strict limitations with regards to budgets and resources, accounting is integral to facilitating growth and development. Poor financial management is the primary reason for small business failure, especially in the first few months of operation, but especially during times of widespread economic volatility.
Accountants can play a role in risk management and mitigation for SMEs. They can also provide professional advice and assist with implementing and monitoring operational procedures.
How to move your South African company to the UK
For many, saving a business may mean relocating overseas, however, moving your business to the UK is a complex process. There are a variety of different options to consider, and you’ll need to choose the option that most closely fits your company’s structure.
In addition to the assistance an accountant can offer during volatile times, they can also provide valuable consulting for expanding to the UK, including company valuations to managing cash flow, meeting tax, corporate and immigration requirements, and the generation of a holistic business expansion strategy.
Furthermore, if you do end up expanding your business into the UK, you will need to choose between opening a subsidiary or a branch. Each structure offers varying benefits, so the decision strongly depends on your specific circumstances. An accountant can help discuss all of your specific options.
Why you need an accountant when establishing your business in the UK
If you need help registering a UK-based business and understanding financial reporting obligations and UK tax structures, an accountant can guide you in the following ways:
Regular business operations
A dedicated accountant can help get your SME off the ground in the UK. Some ongoing actions they can take include:
- Providing general business and tax advice
- Guiding you through your financial statements so you can understand the ins and outs of your business.
- Overseeing the business’s payroll and payment processes.
- Advising on estimated tax payments you should make during the year.
- Closing out your books and creating financial reports.
- Compiling and submitting your taxes, financial reports, and all necessary paperwork.
Business growth stage
When you approach the stage where you want to grow your business, your accountant can also be a resource that helps you manage the process, including:
- Helping you find potential growth areas by providing insight into cash flow patterns, inventory management, pricing, and business financing.
- Advising on property and equipment leasing and purchase.
- Preparing you for, and guiding you through, an audit, if necessary.
- Creating financial forecasts.
- Creating a business budget that will support your goals.
- Providing advice and resources to assist you with the sale of your business.
An accountant is unequivocally the best source of advice and guidance when you want to maintain and elevate your business’s financial health.
No comments: