By law, you don’t need an Accountant, but in this post, I am going to tell you why you need an Accountant to support your business.
When people think of Accountants, the normal image that comes into their heads is someone sat at a desk behind a pile of paper, completing Tax Returns. However, while that may have been true in the past, a new age is upon us.
People are no longer looking for the bog-standard Accountant; they want one that can help, not only support, but grow their business as well through business development. So; here are some reasons why you need an Accountant.
- Pre-start-up business advice – An Accountant, or at least one with experience, can give you expert advice on all areas of starting a new business, from Tax advice, to how to kick-start your company, as well as forecasting your finances.
- Give advice on raising finance – The way in which you finance your business has an important effect on profitability. An Accountant can advise you on such things as whether new
equipment should be leased or purchased, whether it would be best to issue more shares, take out a loan or increase your overdraft, and how to invest any spare cash.
- Give advice on running and managing a business – This is especially useful if you are a recently started business, or you are thinking of starting one. An Accountant can advise you on what would work best for you in your current situation, drawing on previous experience with clients in a similar position to yourself.
- Look after the finances and tax – Good record keeping is an essential requirement for monitoring the financial health of your business. An Accountant will suggest the most efficient and practical way for you to keep your financial records in order. An Accountant will also do for you;
- VAT Returns (If you’re registered for VAT)
- Year-end Accounts, calculate how much tax & NI is owed
- Minimise your business tax by making full use of your allowable expenses.
- Handle any enquiries with HMRC on your behalf
- Planning and managing growth – An Accountant will be able to help you grow your business, whilst cutting back on expenses. They can look at your financial records, and pinpoint exactly where you are spending too much money. Most Accountants would stop here, but if you find a really good one, they will also advise you how you can use this extra financing to grow your business.
- Undertake annual audits – If your annual turnover is more than £5.6m, you are, by law, required to have a formal audit of your company finances. If your turnover is significant, but below this threshold, you may wish to enquire into what auditing services your Accountant offers; it can be beneficial to have a formal, independent, and un-biased review of your business.