Why tech and IT companies need an accountant

When growing a successful IT company, you don’t want to be bogged down with financial reports, cash flow management and other complicated accounting processes. Instead, you should be focusing on running and growing your business.

Enlisting the support of a specialist accountant can add immense value to IT and tech companies. Beyond simply balancing the books, a tech accountant can identify specific tax reliefs, manage cash flow effectively and find innovative ways to drive your business forward.

At AudTax, we specialise in providing tailored accounting services for tech and IT companies. We offer support in all areas of traditional accounting, such as bookkeeping, payroll and preparing financial statements, but we also go beyond this by providing valuable tax advice to enhance your profits.

Whether you’re a startup looking for initial funding, an established tech corporation needing support with tricky financial decisions or anything in between, then this blog is for you. We explore the various aspects of accounting for the tech industry and help you understand how harnessing strategic accounting solutions can be the route to successful business growth.

Keep reading to learn more about accounting for tech companies and IT businesses, or get in touch with one of our accounting professionals to discuss your current business needs.

What can an accountant do for an IT or tech company?

An accountant can provide a wide range of services to assist tech businesses in all areas of tax and accounting. Their industry-specific knowledge will allow them to tailor their approach to suit the needs of your business.

At AudTax, we are specialist accountants, helping clients across the tech industry scale and grow their businesses. We’ll be able to provide you with general accounting support, as well as more technical support with specific challenges faced.

Benefits of using an accountant that specialises in IT and tech companies

As a growing IT or tech company, you’ll already have a heap of work to get through without the need to worry about calculating taxes, understanding your cash flow position and preparing financial statements. Hiring an accountant who specialises in your industry can prove really beneficial, especially when it comes to finding niche tax exemptions.

Specialist tech accountants can implement forward-thinking strategies that keep up with the fast pace of your savvy tech or IT company. With their guidance through the financial intricacies of working in the tech industry and implementing compatible accounting software, you’ll soon see your technology business reach new heights.

By delegating the not-so-fun accounting tasks to professional accountants like ourselves, you’ll have more time to focus on getting stuck into the more exciting areas of your business.

Let’s take a look at some of the various benefits of hiring an accountant for your IT company.

1) Research and Development tax relief for tech startups

As an IT or tech company, you’ll need to put a lot of time and money into researching ideas and developing new products to stay ahead of the competition. Most groundbreaking software and technology come from constant progression in the tech sector.

But did you know that you can save money when you develop new ideas?

An accountant specialising in the IT and tech industry will be able to find the most suitable tax reliefs for your business. This includes the popular R&D tax relief.

Research and development (R&D) is tax relief set up by the government to provide financial incentives to businesses and startups that carry out research and development tasks. Many tech companies and IT businesses can benefit from R&D as it allows them to create completely new products and services, which can entirely transform how people use technology. This, in turn, can result in significant business growth.

2) Ensuring compliance

All accounting firms should ensure compliance when it comes to handling tax and accounting properly. However, an accountant specialising in your specific sector will have a deep understanding of industry-specific tax regulations, which can help you save money while keeping HMRC happy.

Compliance is one of our many areas of expertise. We understand the importance of assisting clients with preparing accurate financial statements, filing tax returns on time and keeping on top of changes to tax laws. With proper compliance and organisation, you’ll have peace of mind knowing your taxes are being handled correctly.

3) Time-saving

When you and your employees are no longer rushing through endless piles of paperwork and administrative tasks, the company morale is much higher.

With an accountant handling your tech company’s accounts, finances and taxes, you’ll have more time to focus on your core business activities, like talking to customers and developing new products.

4) Business growth and scaling

When your finances are in order, that is when you can really focus on scaling and growing your business. By ensuring your accounts are managed, and bills are paid on time, an accountant can put your tech company in the best financial position moving forward.

Not only can they help with the physical accounting tasks, but a specialist tech and IT accountant can provide the right level of financial advice so that you can make informed decisions.

5) Cash flow

With an experienced accountant by your side, you can make the most of your improved financial stability. You’ll have more money to spend on new equipment and tools, keeping you ahead of the competition.

An account will be able to ensure this by streamlining your billing process, identifying cost-saving solutions, assisting with budget management and, ultimately, helping you with important financial decisions. You’ll benefit from clear insights into your tech company’s financial position and avoid the consequences of late payments.

6) Cost-efficient

While you may feel like hiring an accountant will cause a dent in your budget, it can actually be more cost-efficient than doing the accounting yourself. An accountant will look for new and effective ways to save your business money through proactive tax planning, improving financial processes to avoid costly penalties and exploring all possible tax incentives for your tech business.

There is also the age-old saying, ‘Time is money.’ So, with a professional focusing their time and energy on your accounting needs, you’ll be left with more valuable time to focus on improving your business and, ultimately, making more money.

Looking for an accounting specialist in tech and IT? Contact us today

At AudTax, we are an established accounting firm with plenty of experience supporting IT, digital and tech businesses. Our industry-specific knowledge and understanding of tech-related tax schemes means we can save your business more of its hard-earned income.

If you are looking for an accountant who understands your tech business, then get in touch with the specialists at AudTax today. We’ll tailor our accounting services to your specific needs.