Why you need an accountant: part 2!
Posted on 11th July 2019 at 13:31
Last week we touched on a couple of reasons why you should hire an accountant to take care of your finances and the possible implications of not doing so. We know that making the decision can be a big one, especially to a small business. You may be concerned about the cost or how to outsource. However, there are many more great reasons as to why working with an accountant really is a no-brainer and will benefit your business to no end.
As a small business owner, you will have a great deal of knowledge about your business and the sector that you work in. However, do you have the same depth of knowledge about the accounting and financial side of things? Most likely not - or at least not as much knowledge as an accountant. They will be up to date with the latest legislation from HMRC and will ensure things are processed on time and in the correct manner - something you may not be totally up to speed on.
An accountant will also be knowledgeable about the best way to operate, depending on the type of small business you are. For example, they will be able to advise on all the different types of expenses you can claim, some of which you may be unaware of. They will also be able to advise on elements such as payroll and companies house, and whether you should go limited or work as a sole trader.
Accountants are familiar with all the financial terminology and language, so therefore will have the knowledge to deal with any tax enquires if they arise. Something you then don’t need to worry about. We touched on this last week, but this is an important factor that you really must take into consideration.
They will not only be able to provide you with support with the financial side of your business, but also in other areas too, such as legal. By ensuring you have an accountant familiar with your field, they are sure to help your business grow and develop.
By working with an accountant, you will save yourself time. Everyone wants more hours in the day to spent on other areas of their business, don’t they? Outsourcing can really help with this. You can feel confident that your accountant will be on top of your finances, as they are an expert in that field, leaving you to focus on the other important elements.
They will be familiar with how the HMRC requires the information, so something that would take you several hours to complete will take them no time at all. Your accountant will also be aware of any important deadlines, planning ahead to ensure that these are all met.
Finances and tax can be incredibly complex areas. It can be stressful when you begin reading up on all the requirements and penalties if things are not completed in the correct way. If you are stressed about a particular area of your business, this can then have a knock-on effect in other areas, both in your business and personal life. So, if you don’t want that stress and you want to be sure that things are completed in the correct way, you need to be working with someone who is an expert in this field. This will take the worry off your mind and leave you to focus fully on your business. With the finances in the hands of your trusted accountant.
Although it sounds counterproductive, hiring an accountant will save you money. They will be able to advise on the best way to run your business, ensuring it as tax efficient as possible. With some of these savings, you may possibly end up covering the fees they have charged you.
Your accountant may also be able to help with chasing late invoices (a task all small business owners dread), meaning you will get that money you are due paid more quickly (or even on time!). An accountant will also be up to speed on those all-important deadlines therefore avoiding any fines for late submissions or payments.
If you were to manage your own accounts and finances, you are going to be looking at a number of hours to complete this. These are hours you could be spending working with clients or on projects, bringing in more income.
An accountant will also be able to help with moving your business forward, like if you want to grow or expand your business. They will have all the necessary information to look at your cash flow, current position and financial forecasts too.
I’m ready to hire an accountant
Great news! An accountant really will save you time and money. They will also be a real asset to your business and in time will help your business grow.
If you are ready to hire an accountant then we would love to help you - and if we can't, we can put you in touch with our trusted network of associates and colleagues. Why not get in touch with us today and see how we can work together?
Nicola J Sorrell
- Effective Accounting
Founder | Xero Champion | IR35 Expert
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