Running a business can be time consuming and complex as a business owner is responsible for all aspects of their company. Marketing, dealing with clients, payroll and managing a workforce are just some aspects of a business which require almost daily attention. From the day you decide to start your own business, an accountancy service can be greatly beneficial.
Whether you decide to set up a limited business, be a sole trader or find yourself considering a partnership, a qualified accountant is able to provide advice prior to starting your business. Seeking advice before setting up a business will help you to start a venture which is beneficial to you from the very first day.
A number of business owners will try to deal with all aspects of their business themselves in-house. Although this may start off well, you could soon find yourself falling behind with administration, which may incur heavy penalties from HM Revenue & Customs. As you work your way through each day, juggling the many aspects of the company, you could also find that you aren’t up to date with current regulations. Again, this could result in penalties being incurred if you errors are made in your business administration.
Outsourcing to an accountant can help you on a daily basis with items like cash flow prediction, profit forecasts and installing a system to monitor business performance. You may need advice on such matters as how to raise finance or what is the most cost effective finance source. The business records will be looked at on a regular basis so that any problems will be identified at an early stage, before any damage is done. Forecasting for a business is done using the current financial state, making improvements where necessary.
Using an accountancy can leave you free to deal with other aspects of your business.
There is a preconceived idea that accountants charge extortionate prices and require lots of time dedicated to meetings. This is a myth, especially as online accounting is becoming increasingly popular. Online services let accountants utilise technology to keep costs low for clients, often charging a fixed fee. Using an online service allows you to upload documents to your accountant on a real time basis. This permits figures used in your self-assessment tax return to be definite rather than estimated, resulting in an accurate tax bill for the year. As documentation will have already been submitted to your accountant, your tax return will also be prepared and submitted in a timely manner, avoiding penalty and interest charges.
For many business owners, dealing with HMRC during an investigation is not only stressful but also time consuming. Accountants are used to dealing with HMRC on a regular basis and can prepare you for what to expect from any investigation which may take place. HMRC carry out Business Record Checks and it is crucial that all business records are up to date and in order to avoid charges. Keeping accurate business records also plays an integral role in tax planning and financial strategy for the business. A tax accountant knows which tax reliefs, allowances and expenses can be legitimately claimed, reducing your tax bill.
An accountant will use their extensive knowledge and technical ability to work with you to improve the development of your business. If you run a limited company or a small business which is registered for VAT, you may not be fully aware of all regulation changes or correct procedures and timelines which, again, can result in financial penalties. Put quite simply, outsourcing to an accountant can leave you free to run your business.
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