The Importance of Having an Accounting Professional by Your Side

If you are an owner of a small business, then maybe you are one of those saying that they cannot afford to hire an accountant or those thinking that such a person would just be there to fill out forms, keeping the tax bureau happy. However, an accountant is much more than that—he can help you save money in many ways, such as computing your tax return, bookkeeping, etc. If you are still having doubts, here are more reasons why having an accounting professional by your side is very important:

  1. It prevents you from receiving hefty tax fines and penalties.

A key to working around your finances is keeping on top of the paperwork to avoid any penalty for being late. Though this is a task that you are happy to keep up-to-date with, having an accountant would make sense, so you do not need to worry about being familiar with the latest tax regulations, looming dates and ensuring you will never miss a tax deadline. Keeping abreast of your tax submissions will help keep your company’s bank balance healthier by avoiding hefty fines and penalties.

These are only the penalties incurred from late submissions, and there will be more if you submit your forms incorrectly for your VAT return, self-assessment tax return and business tax. Fortunately, your accountant can keep you on top of your deadlines, so you do not have to suffer from these unfavourable consequences.

  1. It removes your tax worries.

Remember that tax is a complex subject—even the HM Revenue and Customs’ guidelines to expenses exceed 100 pages, so it would come as no surprise if you worry about your tax affairs. Having to remember to prepare abbreviated company accounts where appropriate; prepare your company year-end accounts; prepare corporation tax computations and returns; sort out your personal tax return; submit VAT calculations; liaise with HMRC; sort your payroll; and deal with other companies concerning finance can be a burden, which can nevertheless avoided with the right person by your side to handle accounting. He will prepare everything you need, which can save you money and bring you peace of mind, while allowing you to take care of the more important task of running your business.

Accounting Firm

  1. It saves you valuable time.

When you start working for yourself, your priority will be to generate business and fulfil the work you have won, and this would involve keeping abreast of what you have spent, having to do the paperwork and determining what is coming. These things can be time-consuming and would actually take valuable time away from doing essential tasks in hand. But by employing someone to do the accounting process properly, you can save more hours you can spend on other things that can make your operations more efficient.

  1. It helps you with growing your business.

With the knowledge and experience, a good accountant will be a good source of advice on developing and growing your company. Typically, you can work with him to understand the ins and outs of your business, gearing it towards your goals.

By working for yourself, every penny would count, from the money that comes in to the money that goes out. Just keeping a check on the process is a job in itself, yet it would be easy to see accountants as just extra costs. However, there are definitely many good reasons why you should spend a little bit more to hire one to actually help you bring your business towards success.

Good Ways to Secure Your Financial Future

You do not know what lies ahead in your life, and it is important to consider the risks and be prepared if things go awry. This means you have to think what is important to you, such as your family, your home and your lifestyle, and make sure they will be in a safe place. To work things out, you have to do some wealth management and planning to protect what you must, but you have to look at the whole picture.

Wealth Management

Your plans would depend on your stage in life and personal circumstances, e.g. age, health, marital status, employment status, etc. So, from saving as much as you can to planning your superannuation, self-managed super fund (SMSF) and other retirement arrangements, here are good ways to securing your financial future:

  • Try to have more savings.

Apart from saving for important events and purchases, it is also wise to set aside money in case you lose your job or unable to work. Basically, you need to have enough money saved up to cover essential outgoings for at least 3 months, so you will have an emergency fund that can keep you afloat in a short term if something went wrong. However, it is not always easy to save such amount of money, and it can take a lot of time to only be used up very quickly. With this in mind, you should have some emergency money and combine it with a form of protection insurance.

  • Get the right insurance.

Depending on your situation, there are various types of insurance you can take out. A life insurance policy will pay your dependents regular payments or a lump sum if you die unexpectedly to reassure them financially without your existence, while income protection insurance can financially support you if you can no longer work due to a serious injury or illness. There is also the short-term income protection insurance, which will pay out a monthly sum for a set period of time if you lose your source of income due to injury, illness or redundancy. In case you get a specific type of life-changing condition, then you can take out critical illness cover. Aside from these, there are more types of policies you can get to protect you for a lifetime.

  • Pay off your debts.

Many people have debts, and most probably you do as well. For example, you might have incurred secured debts, such as a mortgage, or those unsecured, such as bank loans and credit card debts. Now, remember that if something untoward happens to you and your earnings drop, you still have to pay them out. This means it is wise to keep them under control by prioritising to pay them off.

  • Plan for a richer retirement.

As life expectancy is rising, many people can expect 45 years in employment, which could be followed by 30 years of retirement, possibly living on until they are in their nineties. So, for you to ensure you are not left out of pocket for these entire 3 decades, you should plan effectively. This means you should start planning your superannuation, SMSF or any other retirement arrangement that is available for you. Remember that these arrangements can vary according to how far you have journeyed in life, but you can safely find the right solution with the help of professionals.

With all these tips in mind, you can secure a brighter financial future for yourself and even your family.