Men in grey have the brightest ideas

Men in grey have the brightest ideas

Accountants may have a reputation for being dull, but when it comes to generating bright ideas they are a preferred port of call for small businesses, according to a recent BACS Direct Credit business panel. The panel comprising managers of small businesses from a variety of sectors unanimously agreed that accountants represent a very useful source of external advice for both short-term financial advice and long-term business planning.

According to BACS research, only 9% of small business employ external accountants, but accountants look set to become an increasingly important source of support for small businesses. The two main factors driving the need for external advice being increase in administration and pressure on managers to dedicate themselves to the day to day running of the business.

Some examples of the top tips provided by accountants are:

Buy business premises privately instead of renting. Owners can then collect company rent and have a permanent asset
If a small business I run by a married couple, spread the income between the two to avoid paying more tax than necessary
Set up a separate high interest savings account to save for tax bills
Make and receive payments electronically to avoid the administrative overheads in manual handling of cash and cheques
Include bank details on invoices to encourage prompt, electronic payment of bills
Check new business credit ratings before carrying out work for them

David Harvey, head of small business at the Association of Chartered Certified Accountants (ACCA) said: "These results come as no surprise. If a business is too small to afford an in-house finance expert, a Chartered Certified Accountant will fill the gap, bringing a broad range of all round expert management and financial skills and help plan for the long term. When burdens on business carry on rising, they will also know how to deal with the resulting hurdles, cutting through red tape or keeping the tax man at bay."