Why do I need an accountant?
20 June 2019
Sometimes entrepreneurs just dive right into their businesses without giving a second’s thought as to what an accountant can do for you them.
Setting up a new business can be a daunting task, especially in the current economic climate.
Is there enough market share for the business?
What if it doesn’t get off to the start I expected it to?
How and when do I pay taxes, wages, VAT etc, etc?
The list is endless!
All these insecurities and questions can be eased by hiring an accountant. One aspect of running a small business that few people give a lot of thought to is the way they deal with professional advisers such as bankers, lawyers, accountants and so on.
Sometimes entrepreneurs just dive right into their businesses without giving a second’s thought as to what these professionals can do for you them. Too often this ends in tears when they discover that they have the least advantageous structure for their business, paying more tax than they need to at the wrong time to the wrong section of HMRC, thereby incurring penalties left, right and centre. Taking a step back and getting all the necessary support in place before diving in head first is therefore a sensible option.
Listed below are a few examples of answers that an accountant can provide:
- Help you decide what type of entity and ownership structure to have when you first get started. Should you be a sole trader, or partnership or even a limited company?
- Design and set up your accounting system so that year-end financial reporting will be easier. Can you make use of Cloud accounting opportunities to reduce your accountancy costs?
- Ensure that you enroll with HMRC within the time limits
- Ensure you pay the correct types of taxes in the correct amounts to the correct places
- Advise you on deductions and how to separate your personal and business expenses and affairs
- Advise and guide you through an audit if you ever have one
- Advise you on specific transactions such as, whether it's better to lease or buy
- Carry out payroll and VAT services that get ever more complicated as the government leans on the business world to perform more of their administration by submitting information online within strict deadlines
- Compile your financial records for you
- Help you understand your financial statements. You should use your accountant's expertise to further analyse your financial statements so you can understand your business better and make informed decisions for its future. If you neglect to do this, you risk losing control of your own business.
Ultimately therefore, the range of services an accountant can provide will take the pressure off you. As Bexons are so experienced in this field, you can be sure that all the financial side of your business will be secure. This will allow you to spend your time doing what you do best, instead of worrying about deadlines, who to pay and how much.
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