The growth of many small and medium-sized enterprises is great news for aspiring accountants. But the flip side is that around 90% of all UK startups will fail. It’s a statistic that is both bleak and faintly depressing; how can so many businesses crash and burn? Why are so few companies capable of making the grade?
Well, the first thing to realise is that success is not necessarily dependent on the product; a company can have the very best idea and the most innovative way of manufacturing it, but if said business is lacking in one very particular department, then they will never be able to make an impact.
That department is Accountants finance
Without having access to funds, or without the correct monetary processes in place, it is all but impossible for a company to achieve long-term survival. And this is where accountants can play a significant role.
Accountants understand finance, and they have the insight and experience to inform a business where they should be spending money, why it is important to keep track of all outgoing and incomings, and what can be done to avoid the fate of so many other well-intentioned startups.
So, if you’re thinking about a career in accountancy, what are the FOUR main things that accountants can do to help SMEs sail through those turbulent first few years?
1. Getting finances in order
When a business is new, getting the finances sorted is absolutely essential. An accountant can help entrepreneurs understand their options and can advise on the best ways to secure that initial monetary injection.
2. Contingency planning
Sometimes things don’t go to plan in business, and that’s something accountants learn to cope with first hand. A common mistake amongst small business owners is a failure to set aside money for a rainy day, but an accountant can help mitigate the danger of running short.
3. Understanding cash flow
When trying to run a business, it can be difficult for owners to set aside the required amount of time to fully assess business performance. Accountants can crunch the numbers and understand the bigger picture, giving the business owner the time required to focus on the overall day-to-day operation.
4. Planning for the future
Accountants are not only financial experts, they understand business. They can offer advice to assist company growth and are best placed to offer detailed support and guidance. Many entrepreneurs don’t understand how vital an accountant’s support can be, so it is the role of the accountant to make themselves invaluable.
If you want to help more young businesses to succeed, why not train to become an accountant at one of London’s most respected establishments? If you are searching for accounting and finance degree near Ilford, look no further than Mont Rose.
To discuss the accountancy modules available, and to see if you are eligible for financial support, call 020 8556 5009. We look forward to hearing from you.