One of the most common questions asked by small businesses is whether or not they really need an accountant. During the initial stages of a business launch, resources are usually relatively limited and many business owners think they are saving themselves some money by doing all the accounting work themselves. But is this really a good use of their limited time?
Keeping Up With Paperwork
Starting a successful business is complicated enough on its own, before you even reach the question of official registrations and regular paperwork. At the bare minimum, it is necessary to register your business with HMRC, keep up-to-date and accurate books, and file annual accounts and tax returns - but this can take up a surprising amount of time. Every year, there are adjustments and updates to tax rates, exemptions, thresholds, and a range of other essential data that you can't simply ignore - HMRC inspectors won't care that you were unaware of the changes.
A good accountant is dedicated to staying abreast of all the latest changes, and is much more efficient when it comes to processing your books and filing all the necessary paperwork. It's a much more effective use of time to hire someone who knows exactly how to get things done properly, as it will allow you to focus your energy on making your business a success. After all, any fees that you pay an accountant still count as a business cost, so it's not nearly as expensive as you might think.
Maximising Your Profits
Beyond filing the necessary paperwork, accountants are also experts when it comes to the time to actually get money out of your business. Profiting from your work is your primary goal, after all, and accountants understand the best methods to structure your business and pay out profits to ensure that you're getting the most out of your hard work.
Business Costs
When tax time rolls around, it's important to know what you can legitimately claim as a business cost against your tax bill. Obviously the basic requirements of the business such as rent and inventory are allowable, but once you get beyond the basics you need the expertise of an accountant to make sure that you're everything your claiming is legitimate. A good accountant will also be able to understand your business well enough to suggest additional items that can be claimed, which can often lower your tax bill significantly.
Reliability
As some unfortunate business owners have found to their cost, not all accountants are equally skilled at their profession. In the UK there are no laws about who can claim to be an accountant, which makes it all the more important to ensure that you're getting someone who is both capable and trustworthy. Fortunately, there are several professional organisations that provide assurances to customers that their members will handle your business professionally, such as the Institute of Chartered Accountants in England & Wales, the Association of Chartered Certified Accountants and Association of Accounting Technicians.
Cost
Engaging with an accountant needn’t break the bank and can always be kept to a minimum if you are prepared to do some of the bookkeeping yourself. Accountancy fees can be drastically reduced if you use accountancy software, for example, we are Xero certified and Xero can help you to make the bookkeeping very easy, straight forward and less time consuming.
If you would like to know more about Xero drop us an email.
Keeping Up With Paperwork
Starting a successful business is complicated enough on its own, before you even reach the question of official registrations and regular paperwork. At the bare minimum, it is necessary to register your business with HMRC, keep up-to-date and accurate books, and file annual accounts and tax returns - but this can take up a surprising amount of time. Every year, there are adjustments and updates to tax rates, exemptions, thresholds, and a range of other essential data that you can't simply ignore - HMRC inspectors won't care that you were unaware of the changes.
A good accountant is dedicated to staying abreast of all the latest changes, and is much more efficient when it comes to processing your books and filing all the necessary paperwork. It's a much more effective use of time to hire someone who knows exactly how to get things done properly, as it will allow you to focus your energy on making your business a success. After all, any fees that you pay an accountant still count as a business cost, so it's not nearly as expensive as you might think.
Maximising Your Profits
Beyond filing the necessary paperwork, accountants are also experts when it comes to the time to actually get money out of your business. Profiting from your work is your primary goal, after all, and accountants understand the best methods to structure your business and pay out profits to ensure that you're getting the most out of your hard work.
Business Costs
When tax time rolls around, it's important to know what you can legitimately claim as a business cost against your tax bill. Obviously the basic requirements of the business such as rent and inventory are allowable, but once you get beyond the basics you need the expertise of an accountant to make sure that you're everything your claiming is legitimate. A good accountant will also be able to understand your business well enough to suggest additional items that can be claimed, which can often lower your tax bill significantly.
Reliability
As some unfortunate business owners have found to their cost, not all accountants are equally skilled at their profession. In the UK there are no laws about who can claim to be an accountant, which makes it all the more important to ensure that you're getting someone who is both capable and trustworthy. Fortunately, there are several professional organisations that provide assurances to customers that their members will handle your business professionally, such as the Institute of Chartered Accountants in England & Wales, the Association of Chartered Certified Accountants and Association of Accounting Technicians.
Cost
Engaging with an accountant needn’t break the bank and can always be kept to a minimum if you are prepared to do some of the bookkeeping yourself. Accountancy fees can be drastically reduced if you use accountancy software, for example, we are Xero certified and Xero can help you to make the bookkeeping very easy, straight forward and less time consuming.
If you would like to know more about Xero drop us an email.
Talk to us today to see how we can help you and your business.
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