Life can be tough sometimes. Being a business owner or entrepreneur can add to those stresses and strains. At times you can feel as if you’re responsible for and accountable to everyone and everything.
This is when things can start to spiral out of control.
Most of us start our own businesses with the idea that it will bring a degree of freedom that working for others doesn’t. We learn quickly, however, that this is often not the case, especially in the beginning. Pressures arise from the need to be working on the businesses as well as working in the business.
It can be really difficult to manage your resources, the demands on your mind, body, emotions, finances, creativity and time.
A survey by IPSE (the Association of Independent Professionals and the Self-Employed) reported that the number of self-employed people saying they have “poor” or “very poor” mental health has increased from 6 per cent to 26 per cent since the beginning of the pandemic (a 300% rise).
A third of freelancers (32%) now say they are highly stressed, with serious negative consequences.
Half (48%) said they felt depressed or anxious because of stress – and the same proportion said they felt they were also less productive.
47 per cent of stressed freelancers said they were losing sleep because of worry and 46 per cent said they felt a reduction in their confidence and energy.
Just over a fifth (22%) said they had even lost clients because of job-related stress.
Times are indeed tough and whilst some markets are improving others are still well behind the ‘rebound curve’.
Many self-employed people and entrepreneurs feel isolated and are unsure as to how they can find a space to simply talk about their challenges
Much of the stress and strain in business comes from this sense of isolation. The truth of the matter is we can all benefit from personal and professional support.
Mental Health for business owners is often related to trying to do too much, in too little time whilst responding the demands of others. This results in a feeling of being overworked, overwhelmed and eventually unproductive.
Having a reliable, supportive and professional accountant is an important part of your business support network.
Here are five ways an accountant is good for your mental health.
1) They are on the outside of your business and looking in. This means that they can offer different perspectives and ideas to support you in what you are trying to achieve. Since their particular expertise is in finance they can help you effectively manage your cash-flow offering clear insights on where your money is going.
2) All businesses have to deal with HRMC and many have the additional pressures of VAT. As a business owner you may have an idea of what needs to be done by when, but your accountant will keep you on track. Rather than having to pay unnecessary charges on late filing, or even concerning yourself with that possibility, your accountant will remind you of what information they need, and by when, so taking all that pressure off your shoulders.
3) All accountants will have evolved a core set of processes to effectively manage their own businesses. The systems of record keeping they use need to be robust, manageable and relevant. Thus, they are well placed to advise you on the systems you need to have in place. Since you will be able to locate the financial information you need when you need it you’ll feel less pressured.
4) Your accountant will have a broad financial overview of your business and will be versed in where you can make savings. When the time comes to invest in new equipment, premises or employing new staff your accountant can offer impartial and very relevant advice.
5) Your accountant is not only a business ally but can be thought of as a confident and advisor. Accountants are business owners too and will have experience of a wide range of business types, sizes and structures. They not only personally have knowledge, but also have a network of contacts that could be of value to you and your business.
Let’s think again about why you started your business.
You had an idea, a product or service that you would enjoy developing and offering to paying customers. You became the expert in what you wanted to offer.
Then the reality of running a business strikes!
It’s now not just about your ideas, your services or your products. It’s about tax, research and development, production costs and possibly paying employees.
You are probably not an expert in these areas so spend time developing the skills you need. This takes your focus away from what you really wanted to do.
Smart business owners call in other experts to save time, manage costs and reduce workload. Reducing workload reduces stress and improves mental health. It’s not rocket science is it!
Talk to an accountant, reduce your stress and improve your mental health.
When it comes to your companies accounts and tax returns. GW & Co Ltd, offers Fresh Thinking, Friendly Advice for Your Business Success. If you’d like to talk about the issues raised in this article or any other accounting challenge facing your business, please do not hesitate to get in touch.
Tel: 01326 378288
Email: info@gw-accountants.co.uk
