For business owners, the need to hire an accountant is arguably the fairest question of all, isn’t it? Naturally, you want to spend your money where it matters the most. However, you might tend to spend on extraneous digital marketing activities that often don’t amount to much.
That said, paying someone to handle your taxes might sound startling at first, but it is the best decision you can make for your business. So, do you need an accountant? Well, yes. But realizing the “need” and “finding” the one you need are two different things.
If you want to maintain a higher business standard, you might not want to opt for a freelancer. Sure, it may be more convenient, but the expertise or results may not be entirely satisfactory.
Don’t Generalize Accountants
You’d be surprised how many businesses hire accountants over a few years. And that’s because it takes time to be comfortable and align your goals with your accountant. However, at some point, you might think of changing an accountant because of the complexity of paperwork.
You can search through ads or ask a contractor for advice. And if you operate as an Umbrella Company, you will need to hire an accountant who can take care of your annual personal tax return flawlessly. Whether you need a rigorous tax or dividend planning, an experienced accountant can help you with payroll processing and VAT. Some accountants, for instance, charge extra for providing a more proficient level of tax advice. But the fee is usually around £15-30.
What Can Accountant Do For You?
Ordinarily, an accountant can help you with:
- Corporate taxes
- Annual accounts
- Dividend management
- Payroll processing
- VAT Calculations
- Personal Taxation
- Annual tax returns
Pay Attention to Details
If your inexperienced accountant is more focused on invoices and receipts on your financial statement, then it is time to put your tax affairs in order by hiring a more qualified accountant.
Hiring a Chartered Accountant, however, will add more value to your business. Practically, you will require continuous and proactive financial expertise throughout the tax year. It’s a great way to reduce your extravagant annual tax bill.
Moreover, a chartered accountant can help you save from poor tax planning that might lead you down the path of hefty financial penalties. Additionally, you will be able to manage and submit error less tax records that will decrease most of your financial challenges.
If you intend to hire an accountant, the best course of action for you would be to confirm the qualifications of your selective accountant and then meet in-person. In fact, you should think of hiring a qualified and experienced accountant as an investment.
Besides, not getting one will land you in a pit of tax troubles. In hindsight, remember that not every accountant is a Chartered Accountant. And before you know it, you will be more tax-efficient and will be able to generate more revenue.
We can help with all of your business and personal tax and financial planning needs. For a strategic review of your finances, please contact us.
Disclaimer: We don’t take any responsibility for actions taken based on above information. Please speak to our consultants if you need more information. This guide was written specifically for Smart Accounting clients. Some of the information contained in this guide might not be applicable if you do not have a business managed by Smart Accounting. By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details are correct at time of writing.