Do I need an accountant? - Small & Medium business accounting
“Do I need an accountant?” is a question commonly asked by most small business owners at some point in their entrepreneurship journey. To answer this requires evaluation of your business growth, your goals and your willingness to give up free time to develop a new skillset.
What do accountants do?
Accountants are trained to help you reduce your tax liability, saving you money by knowing which deductions you can claim for in relation to your business expenses – such as claiming a personal car as a company vehicle.
They’re also well-versed in business operations and will often be able to provide insight into various other financial aspects of your business.
An accountant can:
- Keep you updated with the latest tax laws
- File all legal documents
- Prepare your annual tax statement
- Maintain records
- Handle payroll issues
- Apply for business loans
- Explain difficult legal jargon
- Manage your finances as you grow
- Assist with any tax audits or investigations
Why should you hire an accountant?
Using an accountant will give you peace of mind and make your life easier – it’s that simple.
Navigating your way through the maze-like UK tax system can be confusing to newcomers, especially if numbers are not your strong suit.
Employing a professional will ensure that your business doesn’t take any wrong turns, thereby securing your finances from any accidental tax reporting errors and frees you to focus on the growth and development of your business.
Regardless of the cost, there are times during your business life that you should strongly consider hiring a professional accountant.
Pros and cons of hiring an accountant
To summarise, here are some of the advantages and disadvantages of hiring a professional accountant:
- Give you peace of mind and saves you time
- Can protect your business from accounting errors
- Can handle many different financial issues
- Can save you money and reduce your tax liability
- Cost can be expensive for a new business
- Might not be trustworthy/competent
- You can lose touch with your finances
- Cloud-based services can help manage your accounts
Accountants may appear expensive in the early days of your business, but they can save you time, money and stress. It’s in your entrepreneurial hands to decide whether you can afford that expense or not.