Whether you have been in business for some time or are just starting out, I am sure you have wondered about all the various financial roles out there and what would be right for your business.
Finance Professionals are wide ranging and finding the right type of professional for the task at hand is important in getting the best result, so read on for our brief guide into the different roles and services provided:
At some point you may want a book-keeper in your business, even as a sole trader this support can be valuable. A bookkeeper is a data-entry professional, whose primary role is to make and maintain your accurate business records. The data collated by a bookkeeper is often used by business owners and accountants to make financial decisions and can be provided to your accountant.
Unless you love doing your own tax returns, you will want an accountant. The bigger your business gets the more important it is to have someone who really knows what they are doing on the job.
They maintain your financial accountability; and oversee areas like payroll, taxes, and spending. They can also provide reports to management and investigate any financial discrepancies that may arise.
If you become a LTD company, then you will want a Management accountant. They work for public companies, private businesses, and government agencies and look after the day-to-day accounts. Their duties include recording and crunching numbers, helping to choose and manage company investments, risk management, budgeting, planning, strategising, and decision making. They are normally a key part of a business.
Larger companies will have a Financial Manager or Director. They work with the management team to plan, organise, direct and co-ordinate financial information and advise on company financial policy.
A Tax Specialist focuses solely on tax planning and compliance. They can advise clients on ways to reduce their tax bills, or prepare and submit tax return forms.
An auditor is trained to carry out an audit which is “independent examination of financial information of any business or organisation.” Larger companies are required to have their accounts audited, however this is not usually required by small companies.
Companies of any size can be investigated by HMRC, for example if a discrepancy arises in your tax affairs. This is not a statutory accounts audit, and your tax specialist or financial accountant can usually help you through this process.
An Insolvency Specialist is someone who is licensed and authorised to act in relation to an insolvent individual, partnership or company. Most are accountants or insolvency specialists working in firms of accountants. You will only need one of these if your business cannot pay it’s debts ie you have more liabilities than assets on the balance sheet, or if you’re looking to wind up a company. Sometimes it can be useful to consult an insolvency practitioner if your business is encountering difficulties and you want to look at options for recovery.
Mergers & Acquisitions Specialists
Mergers and acquisitions (M&A) is a term that refers to the management, financing, and strategy involved with buying, selling, and merging companies. The M&A Specialist will assist with the deal negotiations and help manage the entire process from a tax perspective.
Banking & Financing
As we all know, Banking and Finance is the world of money, shares, credit and investments. Financial markets are very important, and understanding the pricing of assets and derivative securities is vital. Financial intermediaries such as banks are key players in these financial markets.
An investment specialist represents the fund manager when speaking to clients, they can explain what is happening in the fund: ie where the manager is investing and why.
So how do you know what support you need for your business?
For most sole traders, you would just need a low maintenance bookkeeper and accountant, someone to keep everything up to date and prepare at end-of-year off your records and file statutory commitments.
If you want a more supportive professional, who is available to discuss, train and explain what you need and occasionally check in with you regarding your numbers then look to work with an accountant who actively supports you through the year.
If your business is expanding and growing, you may need extra support from someone who is more involved in your business. Depending on your comfort level with the finances this might be through your financial accountant, or by using additional management accounting services. Look for someone who can actively review accounts throughout the year, share information or updates as they arise that may affect you, and share ways to improve your books. The aim is to help you plan the coming years strategy as things change in your business.
Pyramis Solutions - Your Outsourced Financial Department
At Pyramis Solutions, our services are designed to feel like your internal team, offering the support and practicality of having a book-keeper, management accountant and Financial Director/Controller in your business. Our aim is to help get the full financial management coverage in one handy service, from getting the numbers in order, having reporting that helps you make decisions with them and then utilising this to plan ahead, future proofing your business as well as you can.
We also bend and flex as the business changes, utilising the right people at the right time to work closely with you, that way you have the whole team available and no further recruitment or training needed when you grow.
To top it off, with our Pyramis Accountancy service, we also can help with the compliance and statutory work, again taking the proactive approach to your accounting, perfect for those that want a closer look throughout the year.