Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which can be used in making business decisions
You would not ask your milkman to fix your car – you choose a contractor that is a specialist in their field. This should be no different to you. You may be a specialist in your industry, but are you a specialist also in accounts and tax?
The complexities of your accounts and tax will depend on the structure of your business – having a limited company has many more rules and regulations than a sole trader – but you have to ask yourself how much can you earn doing what you do best, when you let your accountant do what they do best?!
When considering whether you need an accountant ask yourself:-
- Do I know what expenses are allowed or more importantly what expenses are not allowed for tax?
- Do I know what costs are allowable for VAT?
- Do I know what allowances are available to reduce tax?
- Do I know the most tax efficient way to withdraw funds from your business?
- Do I know what and how to report my figures meeting legal requirements?
If the answer to any is no, then you should consider using an expert in accountancy & taxation to help you.
When choosing your accountant look for:-
- Qualification & Experience
- Business Experience
- Do they hold a practice certificate
- Member of a professional body
- Professional Indemnity Insurance Cover
- Fee Charging Structure
- Ongoing Training – keeping up to date with changes in legislation
- Use modern technology and software
- Proactive & Approachable