12 Types of Businesses That Benefit Most from a Small Business Accountant

Is managing your business’s finances overwhelming you?

Running a small business is a rewarding challenge but comes with much responsibility and managing finances is one of the most crucial ones.

According to APQC, 29% of company owners need to know which area of their business has the highest expenses due to the need for daily insight.

One of the most important aspects of any small business is its finances. Finding a small business accountant can help you stay on top of your finances, save money on taxes, and make better financial decisions.

Here are 12 types of businesses that can benefit from a small business accountant.

Business Type	Requirements	Solutions
Retail Businesses	Inaccurate POS integration  Payroll Accuracy Maintain Accurate Inventory	Daily audits of high-volume transactions Integration of POS and accounting software Accurate payroll processing
Restaurants & Motels	Real-time financial analytics Digital transaction management Nightly auditing	Overnight auditing  Online invoices Digitise daily transactions Continuous revenue flow for financial obligations
Health & Wellness Services	Separating NHS and private income GDPR compliance Insurance management	Finance medical care  Working with insurance companies to ensure cash flow
Construction Business	Project cost estimation Payroll processing Tax strategies	Increase cost-efficiency Deploy tax savings strategies Assist with payroll processing
Real Estate Agencies	Property management complexities Tax compliance financial reporting	Assist in company succession planning Improve cash flow Provide virtual CFO services
Creative Industry	Revenue recognition for contracts Grants and royalty management Compliance with industry-specific tax regulations	Managing revenue recognition for long-term contracts Handling grants and funding Managing royalty payments and compliance with tax regulations
Solicitors & Lawyers	Client trust account management VAT Compliance Partnership tax Implications	Accurately recognize revenue for unbilled work Integrate accounting with legal practice tools Develop reports to track profitability by case or client
Consulting and Counselling	Irregular income management Invoicing disputes Compliance with data protection laws	Generating detailed financial reports Ensuring compliance with data protection laws Scaling accounting processes as the business grows
Freelancers	Invoicing accuracy Expense tracking Tax planning Compliance with self-assessment	Tracking and separating personal and business expenses Providing tailored tax planning strategies Deploying budgeting and forecasting tools
Online Business	Revenue recognition across multiple streams Tax compliance Inventory management	Track cost allocation and variable costs Facilitate inventory management with real-time tracking Reconcile multiple payment gateways and handle chargebacks
Government Agencies	Fund management complexities Budget constraints Compliance with accounting standards	Financial risk management Upgrading accounting systems Compliance with regulatory frameworks
Manufacturers	Raw materials cost management VAT compliance Logistics tracking	Environmental cost tracking VAT compliance strategies Efficient logistics management

1. Retail businesses

Challenges

Retail businesses often need help maintaining accurate inventory counts due to shrinkage, theft, and spillage.

Concurrently, inaccurate data transfer between POS systems and accounting software leads to errors in financial records. 

Solution

• Daily audits of high-volume transactions.
• Balanced expenses and revenue throughout the year. 
• On-hand accounts to collect financial records when tax time rolls around. 
• Accurate employee payroll.

2. Health & Wellness Services

Challenges

UK health and wellness businesses have a tricky balancing act. They need an accurate separation of NHS and private income for compliance and keeping client data secure (especially health information) to avoid GDPR penalties.

Solution

• Financing medical care for patients.
• Optimising finances for enough revenue.
• Working with insurance companies to ensure cash flow.

3. Restaurants & Motels

Challenges

Even today, restaurants and motels rely on manual entry, leading to real-time analytics gaps. 

This blurs your business’ financial health and forces uninformed decisions, decisions that allow for the identification of cost-saving opportunities with quick price adjustments. 

Solution

• Overnight auditing and financial reports.
• Ensure all expenses have online invoices.
• Digitise hundreds of transactions every day.
• Ensure continuous revenue into the business for financial obligations.

4. Construction Business

Challenges

Most architecture firms require a percentage of completion strategy to maintain their business records. Also, most construction businesses depend on sureties. They need reliable information about the project and secure a business line of credit to progress in the next phase.

Solution

• Detailed Look at Cash Flow
• Deploy Tax Savings Strategies.
• Present Compelling Case to Secure Financing

5. Real-estate Agencies 

Challenges

Real estate agents deal with the complexities of property management, like rental income, expenses, and security deposits, while navigating real estate-specific taxation and regulatory compliance.

Also, accurate financial reporting, technology integration, cash flow management, and adapting to regulatory changes further complicate accounting. Your real-estate business requires a skilled accounting professional and robust systems for accuracy and compliance.

Solution

• Company succession planning.
• Strategies to improve cash flow.
• Virtual CFO services.

6. Creative Industry

Challenges

The creative industry in the UK faces unique accounting challenges. It must navigate issues like revenue recognition for long-term contracts, handling grants and funding, and managing royalty payments. 

Additionally, staying compliant with industry-specific tax regulations, such as R&D tax credits and VAT on digital services, adds complexity. 

Solution

• Automated Revenue Recognition Systems.
• Assists in managing growth sustainably.
• Getting your business started.
• IP Valuation Models.
• Intellectual Property Valuation.

7. Solicitors & Lawyers

Challenges

Accounting for solicitors and lawyers involves complex challenges such as maintaining separate client trust accounts and complying with stringent regulatory requirements, including the Solicitors Regulation Authority (SRA) rules.

Proper handling of tax compliance, including VAT on legal services and tax implications of partnership distributions, further complicates accounting for legal practices.

Solution

• Use systems to recognise revenue for unbilled work and complex fees accurately.
• Integrate accounting with legal practice tools for streamlined operations.
• Develop reports to track profitability by case, client, or practice area.
• Provide guidance on VAT and partnership tax for optimised planning and compliance.

8. Consulting and Counselling

Challenges

Consultants and counselling businesses often face irregular income and delayed payments, which complicate cash flow management. 

Imprecise invoicing, billing, and time tracking for billable hours lead to disputes and ensure profitability. 

Solution

• Generate detailed financial reports.
• Ensure adherence with the UK Corporate Government Code.
• Scale accounting processes as the business grows. 
• Adhere to data protection laws and GDPR compliance with The Information Commissioner’s Office (ICO).
• Maintain financial health and operational efficiency.

9. Freelancers 

Challenges

Freelancers worldwide adore flexibility and independence, which aids them in pursuing diverse projects and tailored schedules. 

However, this freedom comes with complexities regarding timely invoicing, late payments, and logging billable hours. 

Solution

• Accurately track and separate personal and business expenses.
• Provide tailored tax planning strategies.
• Deploy budgeting and forecasting tools.
• Handle tax compliance, including self-assessment.

10. Online Business

Challenges

Online businesses and e-commerce stores must deal with revenue recognition across multiple streams and manage deferred revenue. 

They need to navigate multi-jurisdictional laws and determine the taxability of digital goods for Sales tax compliance. 

Solution

• Track cost allocation and manage variable costs like advertising. 
• Facilitate inventory management with real-time tracking and precise COGS calculation. 
• Reconcile multiple gateways and handle chargebacks. 
• Deploy customisable financial reporting tools.

11. Public Sectors

Challenges

We see public sectors grappling with technical challenges in accounting, like complex transactions involving multiple funds and grants, each subject to different accounting rules like GAAP or IPSAS. 

Also, strict budgetary constraints require precise expenditure and revenue alignment while meeting operational mandates. 

Solution

• Managing financial risks
• Upgrading outdated accounting systems. 
• Ensuring robust data management and security. 
• Compliance with evolving regulatory frameworks and standards.
• Audit and oversight requirements. 
• Adept financial management practices and skilled personnel.
• Assists in staying ahead of developments and regulations.

12. Manufacturers

Challenges

Manufacturers in the UK require precise cost management involving raw materials, labour, and overheads. 

Moreover, compliance with VAT regulations, especially post-Brexit for transactions within and outside the EU, requires meticulous handling. 

Solution

• Tracking and reporting of environmental costs and adherence to regulatory standards. 
• Efficient payment processing for suppliers and meticulous monitoring of logistics costs. 
• Accounting for quality-related expenses and accrued liabilities for warranties. 
• Managing currency exchange fluctuations 
• Navigating customs duties and import taxes. 

All in all, a skilled small business accountant is essential for managing complex inventories, navigating industry-specific tax regulations, or optimising cash flow. 

For businesses looking to streamline operations and make informed financial decisions, get a quote to partner with some of the most accomplished small business accountants.