When most people hear the word accountant, they think of tax returns, spreadsheets, and maybe the odd letter from HMRC. But if you’re running a small business, a good accountant can be far more than just a compliance box-ticker—they can be a key player in helping you grow.
This article breaks down what an accountant really does (or should do) for a small business, what to expect, and how to get more value from the relationship.
1. Keeping You Compliant
Let’s start with the basics. Your accountant should take care of:
- Year-end accounts (profit and loss, balance sheet)
- Corporation Tax returns (CT600 for limited companies)
- Self Assessment tax returns (if you’re a sole trader or company director)
- VAT returns (quarterly or annually)
- Payroll submissions (including pensions and RTI reporting)
They make sure you meet HMRC and Companies House deadlines, claim the right allowances, and avoid penalties. This is the core compliance role—and for many businesses, it’s where the relationship starts.
2. Managing the Numbers Day to Day
Bookkeeping is the backbone of all financial reporting. Your accountant may handle this in-house, or you might work with a separate bookkeeper.
A good accountant will either:
- Provide bookkeeping services directly (as we do at My Finance Department)
- Or work closely with your bookkeeper to ensure the records are accurate, consistent, and timely
This includes:
- Recording income and expenses
- Reconciling bank transactions
- Managing receipts and invoices
- Keeping digital records (a legal requirement under Making Tax Digital)
3. Helping You Understand What the Numbers Actually Mean
Here’s where the value really starts to show.
A good accountant doesn’t just give you reports—they help you interpret them. That means breaking down:
- What’s driving your profits
- How your costs behave as you grow
- Where you might be undercharging or overspending
- How your cashflow looks in the next 3–6 months
If your accountant only speaks to you once a year, you’re missing out.
4. Forecasting, Budgeting and Planning Ahead
Once the past is sorted, a proactive accountant helps you look forward.
This might include:
- Cashflow forecasting (to avoid nasty surprises)
- Profit modelling (to test hiring, investment or pricing decisions)
- Budgeting (so you stay in control as you grow)
- Scenario planning (what happens if you win that contract—or lose it?)
At My Finance Department, we specialise in turning your numbers into decisions—giving you confidence to plan rather than just react.
5. Providing Strategic Business Advice
An accountant with commercial experience can help you answer key questions like:
- Is this business model scalable?
- Can I afford to hire?
- Should I raise my prices?
- Am I ready to take on funding or investment?
You shouldn’t have to figure all this out alone. Your accountant should be a sounding board who understands your business—not just your tax code.
6. Saving You Time (and Stress)
Perhaps the most under-rated role: peace of mind.
By outsourcing your finance function—even partly—you can:
- Focus on serving clients and growing your business
- Stop worrying about deadlines and HMRC jargon
- Get clear, accurate numbers at your fingertips
- Sleep better at night (seriously)
Final Thoughts
So, what does an accountant actually do for a small business?
At the most basic level, they keep you compliant. But the right accountant helps you understand your business, make better decisions, and grow more sustainably. They’re not just a cost—they’re a partner.
At My Finance Department, we combine bookkeeping, accounting, and commercial insight to help sole traders and small businesses thrive. If you’re looking for more than just year-end accounts, get in touch—we’d love to help.
