Managing your own business is a lot of hard work and you need to keep your eye on the ball and concentrate on your core business if you want to be successful. This means that it is best to outsource certain jobs and responsibilities. If you do not have a background in accounting, you will most likely require the services of an accountant. Before choosing an accountant, you need to have a clear picture of what you require and ask yourself the question, “what can accountants do for me?”
The most obvious benefits of an accountant are filling in tax forms, reducing your tax bill and filing your year-end accounts but a good accountant can do so much more for your business and add real value to your company.
Services that an accountant can offer you
New business start-up advice
Many people have great business ideas, but it can be daunting to set up a new business as there are many things that you need to focus on. An accountant can be invaluable during the start-up phase of your business. They will advise you on the best structure for your business, i.e. should you operate as a sole proprietorship, LLC, corporation or partnership. They can help you draw up a business plan or do a financial analysis of your existing business plan. They can offer advice on bank accounts, accounting software, accounting procedures, bookkeeping, cash flow and the tracking and managing of income and expenses.
Fill in and submit tax forms correctly
Filling in tax forms is always painful and takes your time and focus away from your core business responsibilities. Even if you are a small business owner with a simple business model, you still need to fill in your tax forms correctly and file them on time. If your documents are not filled in correctly, they will be sent back to you by HMRC and you will have to complete them all over again, wasting your time and energy and you could be penalised for late submission. If you miss the deadline and submit your tax forms late you can be liable for a fine. Or worse, your tax forms could be sent to a tax inspector who will then do a thorough investigation of your finances. A professional accountant will ensure that the right tax forms are correctly filled in and submitted at the right time.
Reduce your tax bill
You want to spend your time and energy growing your business not looking for ways to reduce your tax bill, for that you should hire an accountant. A good accountant will cost you a bit extra, but they will also help you save money by reducing your tax bill. They will stay up to date on the latest tax laws and take advantage of every legal opportunity to help you pay less tax.
Tax planning should not be confused with tax preparation. Tax preparation is the work that you do to submit your tax forms correctly, tax planning is the advice that your accountant gives you to enables you to manage your business in the most tax-friendly way and take advantage of the tax laws and regulations.
Managing your personal finances
If you are a small business owner, sole trader or freelancer, your personal finances are directly related to your business income and an accountant can give you personal financial advice, help you manage your finances effectively and save money.
Grow and improve your business by helping you make sound business decisions
When you start a business don’t wait too long to find an accountant because with the help of the right accountant you can develop and grow your business to levels you may not have envisaged. An accountant can handle tax filing, but they can also give you good financial advice and help you make sound business decisions. They can ensure that you keep a good eye on your costs, cash flow, and financial management. If your accountant is acting in your best interests, they will want you to succeed in your business venture and they can act as a sounding board and business consultant, assisting you with more than just your tax planning and preparation. Because your accountant is privy to your business finances and balance sheets, they will soon know your business as well as you do, this means they can offer objective advice because they have no emotional investment in your company. Your accountant will also have connections in the financial, business and banking world that could be useful to you.
Allow you to focus on what you do best
You did not start a business to fill in tax forms and do accounts. You started a business to do what you enjoy and make money. If you are a freelancer, your time is extremely valuable to you and the time that you spend doing accounts is the time that you are not making money. By hiring an accountant, you will have more time to focus on what you do best, ultimately saving yourself time and money.
Find the right accountant for your business
If you have now answered the question “what accountants can do for me?” And the answer is all of the above, then you need to find the right accountant for your business.
Begin your search by asking for referrals from other small business owners. A good recommendation is always a good start. Before you hire an accountant to find out what they specialise in and see if their area of expertise is what you are looking for. If you are a small business owner or freelancer, you do not need an accountant who specialises in tax planning for large multinationals or corporations.
Before you sign up with an accountant, ask for a thorough breakdown of their fee structure, the services they offer, their experience and references from other clients. Your accountant will have access to all your financial information, be an integral part of your business and will offer business advice so it is important to do your homework and choose someone that you trust.
If you’re looking for a trustworthy and reliable accountant in or around Southend then give TFMC Southend-On-Sea a call now on 01702 814 623 or fill out our enquiry form and we will get back to you as soon as possible.
Posted on Thursday, August 8th, 2019 at 11:14 am in Latest News.