by Nick Robinson | Jun 27, 2014 | Business, Business Planning
Many small business and sole traders are unsure about whether to hire a small business accountant. If they are good with numbers and have relatively small turnovers, it may seem like it will be easy enough to keep their own books and complete a yearly tax return than to spend money on getting an accountant to do it. However, even if you are quite capable of basic bookkeeping and completing a tax return, there are still a number of solid advantages to using a small business accountant.
Setting up and Ongoing Advice
A small business accountant can provide you with invaluable help when setting up a business, especially if you are going through the more complicated process of registering a limited company. Your accountant can help you ensure that all requirements are met, every necessary body is notified, and the process goes smoothly.
The finances of even a sole trader are an ongoing concern and can have a direct effect on your income. A small business accountant can provide reliable, ongoing advice and guidance on finances and a range of other business matters. Examples include which records and financial documents you need to keep, and how much you need to set aside for tax and national insurance to avoid a shock at the end of the year.
Compliant and Efficient
Hiring a small business accountant will ensure that all rules and regulations are fully complied with. It will also ensure that your accounts are kept in the most tax-efficient and correct way possible, with all allowances and deductions that you are entitled to being properly claimed.
A small business accountant will also make sure that all expenses are handled appropriately. For example, different types of expenses will be deducted from tax in different ways and it is important to ensure that this is done correctly to prevent over- or underpayment. For example, some expenses will be entirely deductible while others will be deducted over a series of years as capital allowances.
Save Time to Run Your Business
It is sometimes said that a good accountant will save more money than they cost by ensuring that your accounts are properly handled and you get every allowance to which you are entitled. However, these aren’t the only ways in which hiring a small business accountant can save you money. Many people do not consider the value of the time that is saved.
If you handle your own accounts, this takes out time that you could be using to run your business, complete projects, or source new clients. You are usually paid for your working time, but in order to keep books and complete tax returns you need to set aside unpaid working hours. Hiring an accountant will eliminate this need, leaving you to focus on your business and on making money.