Like any professional, an accountant is useful due to the level of expertise they can provide. Whilst it is not uncommon for self employed individuals to complete their own accounts and submit their own tax return, it is unusual for them to claim all the possible expenses and/ or pay minimal tax.
It is important to consider why there is a need for people to go through accountancy training and work hard over a number of years to obtain qualifications, if it is possible for anybody to accurately compile a set of accounts.
Accountants have a vast knowledge of allowances and can use this knowledge to pinpoint expenses to the business that may have been overlooked. In addition, an accountant can evaluate which methods of claiming expenditure would be most tax efficient for your individual business. For example, your self employed friend may claim mileage as an expense; however this does not mean you should. It might be more beneficial for you to claim car expenses and an accountant would be able to weigh this up for you.
In addition, accountants don’t just complete your accounts and tax return. They can evaluate the transactions occurring within your business, spot where it might be faltering and advise you on how it could become more profitable. They can also provide lenders with evidence of your profit if you decide to apply for a loan or mortgage and offer advice on decisions you may need to make, such as whether you should lease or purchase a vehicle.
From our own experience at The Accountancy Partnership, it is extremely rare for us to not save a client money on tax if they had previously been doing their own accounts and returns.
For more information please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.
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About The Author
MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.