Why do I need an accountant?
Running a small business involves navigating a complex web of financial transactions, tax obligations, and legal responsibilities. So, why do I need an accountant? Tackling these areas can be a daunting task and is often done after business hours during evenings and weekends, adding to the stress of the business owner.
Hiring the right accountancy firm will not only give you your evenings and weekends back, but also keep you up-to-date with your tax obligations, provide business advice and identify opportunities to save.
If you’re not using an accountant you may fall into these common pitfalls:
- Missing filing deadlines with HMRC or Companies House
- Making errors in your record keeping
- Miscalculating the tax you owe
- Not claiming all of your allowable expenses
What will hiring a good accountancy firm mean for you?
Expertise & Knowledge
Accountants are professionals who have undergone extensive education and training in accounting and tax. They have in-depth knowledge of tax laws, financial regulations, and best accounting practices. Their expertise can help you navigate complex financial situations, avoid costly mistakes, and ensure you are compliant with your legal and regulatory requirements.
Note: If you have an accountant, it is worth checking whether they are regulated by a professional accounting body. Read our blog here on “Why is using a regulated accountancy practice so important?”
Time and Efficiency
Managing finances can be a time-consuming task that distracts you from focusing on your core business activities. By hiring an accountant, you can delegate the financial responsibilities to an expert, freeing up your time to concentrate on what you do best. Many accountancy firms can also handle tasks such as bookkeeping, payroll, VAT preparation, as well as year-end reporting, allowing you to streamline your operations and improve overall efficiency.
Tax Planning and Compliance
Tax laws are ever-changing and can be challenging to keep up with. An accountant can guide you through the intricacies of tax planning, helping you maximize deductions, minimize tax liabilities, and ensure compliance with the latest tax regulations. They can prepare and file your tax returns accurately and on time, relieving you of the stress and burden associated with tax-related matters.
Accountants possess analytical skills that enable them to interpret financial data and provide valuable insights into your business’ financial health. From generating comprehensive financial reports, they can identify trends, and offer recommendations to improve profitability and cash-flow. With their assistance, you can make informed decisions, set realistic financial goals, and devise effective strategies for growth.
For business owners, accountants serve as trusted advisors who not only provide guidance on financial matters, but also act as a listening ear to their business challenges. Running a small business can be a lonely experience, but hopefully having a trusted advisor to bounce ideas across, brings a welcome relief.
Peace of Mind
One of the most significant advantages of having an accountant is the peace of mind they bring. Knowing that a qualified professional is managing your finances instills confidence and reduces stress. You can rest assured that your financial records are accurate, your taxes are handled properly, and your financial affairs are in good hands.
So, if you’re without an accountant or your current firm doesn’t tick the above boxes, it might be time to review your position. When hiring an accountancy firm, it’s important to do your due diligence. You can do this by taking a look at their website and social media channels, ask for client references, seeing if they have any industry awards, and checking if they are regulated by a professional body.