Why using an accountant is better than going it alone
Whether you are a limited company or sole trader, being at the front-end of your business is what you do best. You know your market, your product or service, and your clients. You know how to keep your clients happy and how to find new ones. You’ve probably taken advice on marketing and sales at some stage in your business’ life. When it comes to accounting this is not the place to try to save money. In fact, investing into hiring an accountant to help you run your business is what will lead to saving you money.
But how? Here are a few reasons why hiring an accountant is more beneficial to your business than doing it on your own:
Setting up the business properly
A qualified accountant can advise on the best way to structure your business at the outset. Are you better off as a sole trader or would it be more beneficial for you to operate as a limited company or even a limited liability partnership? With their knowledge of tax and regulations they will advise you on the best option for you and your business.
Preparing a business plan
No one goes into business without some idea of what they want to achieve, how they want to run it, and what returns to expect. An accountant will take this a step further with you and help with financial projections, analysis, and reporting to make sure you are on track or to help if you are veering off it. With access to a wide variety of tools and software, with their help you will end up with a realistic business plan and a higher chance of success.
Getting help with your finances
Inevitably that time of year comes around when you have to prepare and submit a tax return. They will help you to understand what tax you have to pay and when, find the most tax efficient way for you to manage your business, help you to navigate things such as claimable expenses, VAT, tax obligations, and dividends.
They understand regulation
Accountants can do much more than advise on tax and company structuring. They also know about the regulatory and compliance requirements you must adhere to; these can, and sometimes do, change frequently with new or major changes made to existing obligations that could result in large penalties if not followed properly.
Help during an audit
You may be audited when your company reaches a certain threshold. This could be your company size or the business’ turnover. An accountant will help you navigate through the requirements of an audit and reduce the stress, expense, and time that it can take to complete.
Help with expansion plans
If you are considering expansion an accountant is ideally placed to help you choose the right path. If you’re thinking of taking out a loan they can assist with preparing the paperwork, projections, and business case to put to your lender or investor. If you are considering an acquisition they can assist with the financial due diligence, and if you are thinking of franchising they can advise on issues such as fees and charges as well as assist with income projections.
Running your business is your primary focus, whether it is a large corporation or you are a freelancer. At Bells Inc. Hamilton Stewart we are here to help make it easier for you to do that. Talk to us about anything that you are unsure of or would like some professional advice on. We are here for you when you need us on 020 8763 1711 or by email on .