If you run a small business, one-man band or work freelance, understanding the ins and outs of tax regulations is probably very low on your to-do list. However, it is crucial to know the whys, whens and whats of your business's financial standing, that's why we have accountants. Today we give you 5 benefits as to why you need an account for your business.
Your tax affairs are a huge responsibility for any business owner, small or big. Following HMRC rules and making sure you hit your deadlines is often a point of stress and concern for many businesses. Though it doesn't have to be. Accountants like us are here to help you every step of the way.
Here are five benefits accountants bring to your business
Hours and Hours of Time Saved
In the early days of business, be it self-employed, freelance or even a limited company, the aim of the game is to generate business and keep your clients happy.
Doing all the endless admin tasks such as bookkeeping often takes you away from the ‘important’ stuff that you know has a direct impact on your success like sales and networking.
Employing an accountant who is up to date on the latest tax regulations, deadlines and modern accounting methods can save you hundreds of hours over a year, leaving you to use that time more efficiently.
Bring Your Tax Liability Down
Any accountant worth their salt can give you expert advice on how to make your business more tax efficient.
Having the knowledge of the best way to operate your business, whether it's as a sole trader or an LTD company, and knowing the best way to take money out of your business without running into high-tax liabilities is something that accountants can help with.
An accountant will talk you through things like paying yourself through a dividend, the different things you can and can't claim back on your VAT return as well as the benefits of the flat rate VAT scheme.
A good accountant will know exactly what to suggest to make your business the most tax-efficient enterprise it can be.
Help You Avoid Tax Penalties And Fines
A great challenge to new business owners is keeping up with all the bookkeeping and meeting the ever-present HMRC tax deadlines. Some people like this kind of work and find that they can manage it on their own, up to a point. But most people simply struggle with bookkeeping and record keeping. It can be tedious at times and understandably, business owners outsource the work to a bookkeeper or accountant to ensure they never miss a deadline again.
Keeping to your deadlines will avoid HMRC penalties which can be as much as £150 a day for late submissions or a £1500 fine for a six-month late annual accounts delay.
These are just the late fees that HMRC will slap you with for missing deadlines. This doesn't include things like filing your accounts wrong, messing up when you do your self-assessment, VAT return or corp tax. Accountants do this for a living so know exactly what needs to be done and when. As Well as being masters at talking to HMRC to get things resolved before more fines can be issued.
Help With Business Growth
Working with so many businesses, accountants are pretty well educated when it comes to growth strategies. They are a great source of advice and will gladly guide you to higher levels of business success.
This is even more powerful when applied to new business owners who may not know so much about business. Accountants see the profit and loss accounts for their clients so can quickly bring new owners up to speed with how to spend their money and get great results with less capital.
Let's be real here, taxes are confusing. Is it any surprise that business owners stress about taxes when even HMRC’s own expenses guide is over 100 pages long?
Running your business day to day, making sure clients' expectations are met, finding new business, learning about best practices, managing staff, marketing, planning, and budgeting all become incredibly hard for one person to manage. As well as remembering to prep your year-end accounts, VAT return, payroll and corp tax is just too much for most businesses to handle, especially in smaller companies and startups.
Your account will take all of the tax stress of your business off your shoulders. Imagine not having to deal with the endless stream of paperwork from clients and suppliers, not dealing with HMRC when they allocate a tax payment to the wrong account and making sure that you don't miss the next deadline. Knowing that you have an expert on call to discuss financial matters relating to your business.
That's All For Now
We hope you have found value in today's article and don't forget to check back every Monday and Thursday for new content. You can also sign up for our newsletter for a monthly roundup of our latest news. Maybe have a look at one of our other articles too. Thank you.