Running a small business isn’t easy. You’re juggling everything – from sales and marketing to customer service and admin – while also trying to keep your finances in order. With so many digital tools available to make things easier, it’s tempting to try and figure it all out yourself. But is that really the best use of your time?
At Starfish, we specialise in helping small businesses, particularly those with fewer than ten employees, to streamline their finances and make their processes more efficient. One of the biggest ways we do this is by guiding businesses through digitalising their business finances. But why is this so important, and how can an accountant help?
1. Less Paperwork, More Clarity
Many small businesses still rely on spreadsheets, paper records, or outdated systems to manage their finances. This can easily lead to missing invoices, forgotten expenses, and stressful tax deadlines. Moving to a cloud-based system like Xero means everything is in one place, updated in real-time, and accessible from anywhere.
As a Xero Gold Champion Partner, we help businesses transition from their current systems to Xero, ensuring a smooth setup and making sure they fully understand how to use it. And because of our partnership with Xero, we can even offer discounted subscriptions.
2. Small Business Compliance Made Simple
Whether it’s filing tax returns, running payroll, or managing VAT, small business owners often struggle to stay on top of ever-changing financial regulations. An accountant doesn’t just handle these tasks for you – they make sure you’re using the right digital tools to do them efficiently.
With Making Tax Digital for Income Tax (MTD IT) on the horizon, more businesses will soon have no choice but to use digital solutions for tax reporting. Yet, many business owners either don’t know where to start or believe MTD will be postponed again and keep putting it off. Having an accountant guide you through this transition ensures you stay compliant without last-minute stress.
3. Finding the Right Tech for Your Business
There are hundreds of digital tools available, from accounting software to invoicing apps and payroll solutions. But figuring out which ones are worth investing in can be overwhelming. Many business owners just don’t have time to research all the options, leading them to either stick with inefficient systems or adopt the wrong tools for their needs.
That’s where we come in. We understand how businesses operate and can quickly identify which software will make the biggest impact. Our approach is to find quick wins – changes that deliver immediate benefits to show you that going digital is worth the effort.
4. Avoiding DIY Pitfalls
Some business owners see hiring an accountant as an unnecessary cost. They assume they can manage on their own with a spreadsheet or an AI-generated guide. But in reality, DIY finance management often leads to mistakes – such as missed expenses, poor cash flow planning, and incorrect tax bills.
AI tools like ChatGPT can be helpful for answering quick questions, but they don’t replace personalised advice. The problem is, AI only provides answers based on the question asked – if a business owner doesn’t know the right question to ask, they might end up with misleading or incomplete information. This is where professional guidance makes all the difference.
5. A Changing Business Landscape – Relationships Matter More Than Ever
Interestingly, while digital tools are making finance management easier, the way businesses choose their accountants has shifted. Online content marketing used to be a strong driver for new clients, but now, we’re seeing a return to in-person networking and referrals.
With so much financial information available online, business owners often feel overwhelmed. Many try self-service solutions, only to realise they need expert help after getting confused. This is why trust is more important than ever. People want to work with an accountant who understands their business and can offer tailored advice, not just generic online content.
6. Knowing When It’s Time to Get an Accountant
Many businesses wait until they’re in trouble before seeking help. However, there are key points where working with an accountant can make a huge difference:
- Becoming an employer – Managing payroll and taxes for employees is a big step, and getting it wrong can be costly.
- Registering for VAT – A major milestone that requires proper tax planning and compliance.
- Seeking investment – Investors want to see clear, accurate financial records.
- Growth and scaling – When business owners are ready to take things to the next level but need better systems to do so.
By getting an accountant involved at the right time, businesses can avoid frustrating mistakes and set themselves up for long-term success.
Getting Started
Digitalising your business finances isn’t just about using new software – it’s about making your business more efficient, compliant, and ready for growth. Having an accountant to guide you through the process ensures you choose the right tools, avoid common mistakes, and get expert insights tailored to your specific needs.
If you’re ready to make managing your business finances easier, get in touch with us at Starfish Accounting. We’d love to chat about how we can help you make the transition to digital and free up your time to focus on what you do best.
