Why accountants should care about Intellectual Property: A business perspective

When you think of intellectual property (IP), you might picture patents or trade marks being handled by legal teams. But accountants have an equally vital role to play. As financial advisers, your insight into a business’s assets isn’t complete without understanding the value and implications of IP. Here’s why IP should be part of your conversation with clients.

Intellectual Property for accountants: Why it matters

Intellectual property is a critical business asset. For accountants, it’s not just about the numbers on a balance sheet; it’s about helping clients protect and maximise the value of their IP. Whether it’s trade marks, patents, designs or copyright, IP often forms a substantial part of a company’s overall worth.

High Street banks are now lending on the back of registered IP, if businesses are looking to buy, sell or seek investment not having IP protected could be a substantial blocker in your clients getting the value that they want and deserve for their business.

The accountant’s role in IP

Your role as an accountant goes beyond traditional financial tasks. Accountants and intellectual property intersect in various ways, from IP valuation to tax planning. By considering the financial implications of IP, you can offer your clients broader, more strategic advice.

Here’s where accountants can add value:

• IP audits: Signpost clients to help them identify and organise their IP assets.
• IP valuation: Provide accurate valuations for acquisitions, mergers, or licensing deals and if this is not within your remit signpost those clients to those that can undertake this work.
• Tax implications of IP: Advise on tax relief opportunities, such as R&D credits or capital allowances.

Understanding these aspects not only strengthens your client relationships but also enhances their financial position.

Intellectual property protection as part of business strategy

IP protection is crucial for businesses, regardless of size. Accountants are uniquely positioned to highlight the risks of leaving IP unprotected. For example, failing to register a trade mark could result in costly legal battles or loss of brand identity.

Accountants are often the first professional to hear of a business’ name, they may register it at Companies House, indicating at this stage that a trade mark search would ensure true name availability can save huge costs and time if a business owner was to unknowingly infringe on another’s IP. Business owners do not want to be wasting their time, effort and money investing in a brand or name that they can never truly own. You’re advice at this stage would be invaluable to a business owner.

By integrating IP protection into financial planning, you help clients avoid these pitfalls. You can also encourage them to think strategically about their IP, whether through licensing agreements or expanding their trade mark registrations to new markets. By doing this you are helping your clients to identify their assets, their weaknesses, help them get the most investment or the most value for their business and brands.

IP and accounting professionals: A team effort

Collaboration between accountants and IP specialists is key to providing comprehensive advice. While IP professionals handle the legal aspects, accountants can focus on the financial side, ensuring that IP assets are correctly valued and strategically utilised.

This collaborative approach ensures clients get the best of both worlds: robust legal protection and sound financial management.

Helping small businesses make the most of IP

Small businesses often underestimate the importance of intellectual property. As their accountant, you can change that. From helping them register trade marks to understanding the tax benefits of protecting their innovations, you can guide your clients in building a solid foundation for growth.

Small businesses can benefit significantly from your advice on IP strategy, particularly in competitive industries where differentiation is key.

Adding IP consulting to your services

For accounting firms, offering advice on intellectual property can set you apart. By incorporating IP management into your services, you’ll not only provide more value to clients but also open up new revenue streams for your practice.

From conducting IP audits to advising on IP strategy, accountants can play a pivotal role in helping businesses protect and grow their intangible assets.

Final thoughts

Intellectual property is more than a legal matter; it’s a financial one. As an accountant, your ability to advise on IP rights, valuations, and tax implications can be transformative for your clients. Whether it’s a simple trade mark registration or a complex IP strategy, your expertise can help businesses safeguard and grow their most valuable assets.

If you’re ready to explore how intellectual property can enhance your practice, contact National Business Register today. We’re here to support accountants in navigating the world of IP with confidence.