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:
- 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.
- 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.
- 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.
- 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.