In the dynamic world of finance, the role of accountancy is always evolving. Over the long term, the accountancy practices that are the most successful are not necessarily the firms with the best accountants, but are the firms that are most able to act strategically and effectively navigate through the inevitable challenges that they face along their growth journeys.
So, maintaining a healthy, growing accountancy practice clearly requires more than just having good accountants… It requires a strategic, proactive approach to business that enables the firm to repeatedly do things like take calculated risks, spot and mitigate against potential threats, and maintain a healthy cash flow position.
So, what proactive measures can accountancy firms take to increase their chances of long term success? Well, strategically raising business finance at opportune moments is often one of best levers available to accountancy firms to aid them on along their growth journey, and at Acorn, we’re set up to help you with exactly that.
In this blog post, we’ll explore a few ways that our funding solutions can empower accountants before also looking at how accountants can further enhance their own business and that of their customers by becoming an Acorn Introducer.
What Can Accountants Use a Business Loan For?
1. Business Investment
It’s inevitable that as an accountancy practice grows, there are going to be times where substantial capital investments will be required to take the business to the next level.
In a competitive field such as accounting, businesses need to regularly invest to boost their development and stay at the forefront of industry trends. Whether it’s for recruiting more staff, expanding offices, or something else, it’s usually the case that progress requires some form of upfront investment.
This is where a professional practice business loan comes in, with funding for accountants available for investments such as:
Case Acquisition Finance:
Cover the costs associated with acquiring new clients or cases. This could include expenses such as initial consultations, legal documentation, and any upfront costs related to taking on new accounting engagements.
Refurbishment Projects:
Renovation or modernisation of office spaces, technology infrastructure, or other facilities
Capital Injection:
Support growth initiatives such as expanding service offerings, hiring new staff, or investing in marketing and business development activities.
Buy-in / Buyouts:
Funding to facilitate your accountancy practice bringing in new partners into the firm (buy-in) or purchasing shares from existing partners (buy-out).
Aged-Debt:
Outstanding invoices owed by clients that are overdue (aged-debt) can cause even healthy businesses to face cash flow struggles. In moments such as this, without a business loan, strategic investments to support growth may have to put off or even cancelled altogether.
In this situation, a business loan from Acorn will help to stabilise your cash flow and allow you to continue in your commercial operations with confidence. At Acorn, business loans are the largest area of our business, and with decisions on loans applications usually received within 48-72 hours of submission, we prioritise a fast, personal service.
PII Premiums:
An accountancy firm’s PII renewal premium represents a substantial outlay even at the best of times, but with PII renewal costs on the rise and acceptance criteria tightening, the financial burden can become even more significant.
We’ve written this 2024 Professional Indemnity Insurance Guide For UK Businesses which sheds more light on how to deal with PI insurance. One key takeaway is that, in industries that carry high PII premiums such as accounting, a business loan is a smart, convenient and stress-free way to cover the cost and maintain cash flow.
Disbursements:
Disbursements for accountancy firms include reimbursable expenses incurred on behalf of clients during the course of providing professional services. This could include expenses such as travel, accommodation, postage, software subscriptions, or regulatory filing fees, which are passed on to clients as part of the overall service cost.
2. IT Finance
This is business finance that is used specifically for IT purposes, including:
- Updating software systems
- New computer equipment
- IT installation & maintenance costs
- Tablets, Monitors, keyboards etc
- IT specific training
At Acorn, we also take into account any tax benefits that may apply to the funding you need for IT investments. When you consider that tax deductions from IT investments are available on many different types of investment usage, such as capital allowances, R&D, and more, this is an area where businesses can take advantage.
3. Vehicle Finance
Company vehicles can be an important part of a business that needs to meet clients, attend meetings and manage various responsibilities on the go. As with other large capital investments, vehicle payments can put a strain on your cash flow.
At Acorn, we can help you source bespoke vehicle finance to suit your needs, whether you are upgrading your existing vehicle, buying an additional car for your team, or even financing a whole fleet! We can help you put together a finance package
These are just a few of the ways that a personalised business loan brokered by Acorn can support accountancy practices in the UK.
Interested in learning more? Book a free call with our team today, or browse our website to read about more of the types of business finance we specialise in.
Partnering for Success: How Accountants Can Become Introducers for Acorn Business Finance
Are you an accountant seeking to provide additional value to your clients while growing your own business? Partnering with Acorn Business Finance as an introducer could be the solution you’ve been looking for. Here’s what it means, the benefits it offers, and how you can get started:
What It Means to Be an Introducer:
Becoming an introducer for Acorn Business Finance means you have the opportunity to refer your clients who are seeking funding options to a trusted and reliable finance provider. By leveraging your existing client relationships and understanding of their financial needs, you can connect them with financing solutions that support their growth and success.
The Benefits:
- Ease of Referral: Acorn’s Introducer Portal streamlines the referral process, making it quick, simple, and secure. With our bespoke system built on Salesforce, one of the world’s most advanced Cloud-based CRM systems, you can create leads, track their progress, and view any commission owed to you, all from the Portal dashboard.
- Personalised Service: Once you submit an introduction, your dedicated Business Development Manager will personally reach out to your client to guide them through the funding process. From providing indicative terms to facilitating electronic documentation via DocuSign, we ensure a seamless and personalised experience for your clients.
- Commission Structure: We value the referrals made by our introducers and offer a commission for each successful referral. However, many of our introducers choose to forgo this commission and instead deduct it from their clients’ annual fees, passing the financial benefit directly to them. This not only strengthens your professional relationship with your clients but also rewards them for their loyalty and trust.
How to Enquire:
Getting started as an introducer for Acorn Business Finance is easy. Simply reach out to our team to express your interest, and we’ll guide you through the onboarding process. Once onboarded, you’ll gain access to our Introducer Portal and receive personalised support from our team every step of the way.
