If you’re starting to gain some money from your business, enough to consider a new hire, an invaluable member of any business is the accountant.
Handling the money is the world’s second-oldest profession, but it can be a daunting task, and it’s essential to get it right the first time.
Do I Need An Accountant For My Small Business?
Small business owners often ask if they need an accountant. The answer is always yes! HMRC, the tax authority in the UK, recommends that small businesses use the services of a qualified accountant to deal with business tax issues.
If finances are causing stress in your team or you think they could benefit from a professional perspective, then read on for our reasons as to why you should consider hiring an accountant.
Saves On Time
Most businesses will naturally start as someone doing what they love and hoping to make a living out of it. A majority of those businesses will treat the finances as an afterthought. The companies that grow do not.
Hiring someone solely to focus on the money will save you time that you and your team could be spending honing and perfecting your products or services rather than spending hours at the dinner table trying to wade through financial records and determining taxes. You don’t need to waste time crunching numbers or trying to understand crunching numbers, and your team gets to focus on the general running of your business.
Saves On Stress
A lot of us weren’t made to look at numbers. If spreadsheets, invoices, and tax returns have you going cross-eyed or the idea of opening your accounts causes an instant migraine, you should look into hiring an accountant. Some accountants can offer you access to software that can give you a simple look at your finance.
You can even hand over complete management of your accounts to your accountant, which means they will be able to do everything on your behalf. They can manage your tax return, PAYE, and even manage your communication with HMRC. However, you will still be legally responsible for any inaccuracies found in your accounts.
Accountants are not just solely meant to keep your taxes down; they can also aid in improving your entire business setup. They can run a critical eye over a business startup’s projections and financial plans and advice accordingly. As your business grows, they can present to you various available options and advise you on how, or if, to change the structure of your business.
Accountants can offer advice on business improvement services, financial planning and restructuring, and insolvency, for example.
If you are looking into gaining an investment, be it in the form of a bank loan, business angels, or investors, an accountant can help you create a solid plan which will detail your forecast and your accounts to date. They can offer guidance and make sure everything is covered and will be a professional reassurance to investors that your figures are accurate and realistic.
Saves On Money
With tax deadlines, limits and amounts constantly changing, it can be hard to keep up to speed. If you overlook a critical change, you could end up significantly underestimating your next tax bill. An accountant will be able to navigate these changes with ease, making sure your company will pay the correct amount of tax at the right time.
A good accountant will look at your finances and be able to point out any areas where you could be saving money, like avoiding overpaying for a service or product your business needs to function or claiming expenses you’re entitled to, which could drastically cut your tax bill and even end up paying for your accountant.
You can be confident that your money will be safe and your accounts in order, plus you will be assured that no late payment fees will land on your doorstep.