WHY IT IS IMPORTANT TO USE AN ACCOUNTANT
Firstly and foremost it is important to gain the services of the right Accountant as unfortunately HMRC are very unforgiving and start to dish out the fines. if you submit paperwork late.
Or if you haven't quite understood tax laws and what are acceptable expenses and which are not, you can end up being investigated by HMRC. A good Accountant will always advise you which are the correct procedures and which are not.
These are the basic and most important reasons to find yourself the right accountant at the beginning of you journey. But if you have time to read the article below, there are many other reasons why its important to choose the right account.
If you register with an Accountant at the start of your journey they will be there to support and advise you at every step. and as you have time then to pay them a little each month by the time your accounts are ready to be submitted to HMRC you will be fully aware where you stand in terms of profit or in some cases whether your business, company or self employment is making a loss.
Many people and freelancers just starting out often think that put off getting their own accountant due to the cost, and feel like its an extra cost which they will worry about once they have money coming in.
But this is not always the best solution as depending on your year end date or in case of self assessment there are a lot of people that leave this to the last minute. There will be many people out there in the same position.
And the accountant may then not be available to complete your work on time.
Also if you choose the right accountant like us for example we love to work with all kinds of businesses and tailor our fees to the needs of the client rather than having a fix fee rate which for new and struggling businesses is not a viable option. we offer fees that are flexible in price and payment methods.
Accountants can do so much more for your business. The cost alone should not be your deciding factor as the very least an accountant should be doing is saving you enough cash to cover their own costs, but a good one will be saving you a lot more and bringing additional benefits to your business too.
Many business especially those in the service industry charge by the hour or bill clients based on the amount of time they have worked on a project. That means time wasted on doing your paperwork and tax returns is time that you are not earning.
You want to spend your time where your talents lie, not spending valuable time on sorting out your accounting. Handing over the nitty gritty of your accounts to an expert accountant will save you lots of hours that you can spend actually building your business.
Getting things right:
Accountants are indeed experts at filling forms. They need to be to make sure that everything is correctly filed with HMRC and to make sure that no crucial errors are made. If you have never had the pleasure of filling in a tax return before then you are opening yourself up for errors that could prove costly down the line. This can often take longer than people think if you are unfamiliar with the process and delays in filing your returns will lead to financial penalties. Using an experienced accountant will mean your returns are filed correctly and on time, every time.
Saving you money on your tax bill:
Correctly filling in your tax return isn't just about completing the boxes correctly, it's also about knowing how to do it and save yourself money at the same time. Decent accountants will know where you can legally reduce your tax bills and the savings can quickly add up to cover the cost of your accountant and a whole lot more. Tax laws are also constantly evolving so appointing an accountant who will stay up to speed with the latest policies means you will never pay more than you need to in tax.
General business advice:
Experienced accountants have dealt with all kinds of businesses, meaning they are often well placed to give general advice and help in growing your business, as well as dealing with the details of your finances. It is in their interests too for your business to succeed and grow so a good accountant will be there to offer their advice and the benefits of their experience, even for general business queries.
When you are starting out, and even if you've been in business for years, it always helps to have other people to bounce ideas off and your accountant can give you objective feedback and valuable advice, beyond the financial advice you will get from them. And if you do encounter any issues which they cannot help with, they are sure to have an extensive contacts list of professionals who can.