Proper accounting is needed by any business, no matter how big or small your business is. And the same is true if you work as a contractor or a freelancer – you need to have the proper accounting and bookkeeping for your profession so you can understand where your finances are going and whether or not you are truly making enough – and, more importantly, making enough to turn a profit. Along with this, you also need to have a good idea of whether your tax affairs are in order or not. This is where help from an accountant or bookkeeper can definitely come in handy. So how can an accountant or bookkeeper truly help you? Here’s a look at the critical reasons why you may need an accountant for your small business.
- Save time
Once you have your own business or are self-employed, your main objective would be to generate as much business as possible. But if you still have to do financial paperwork and accounting on top of your other responsibilities and activities, this can take time away from what you really have to do. If you employ an accountant, however, you can have someone on your side who takes care of your financial records and makes sure you are completely compliant with all the latest regulations and tax laws. Not only this, you have someone who can take care of what HMRC needs and requires, especially when it comes to the proper deadlines and formats. This can definitely save you hours and hours of effort and time, allowing you to make more efficient use of your talent and skill.
- Decrease your liability on taxes
A proper accountant and bookkeeper can also help you find ways to save money simply by giving you the proper counsel and advice on how you can run your business more tax-efficiently. If you are aware of the best way in which you can operate, then you can become more tax efficient, thus saving more money as well. Your accountant can help you understand how you can pay yourself with the use of dividends, what you can (as well as can’t) claim on your business expenses, and how the VAT scheme can benefit you, among others.
- Avoid hefty fines and taxes
One of your foremost responsibilities if you have a small business or are self-employed is making sure that you keep on top of your financial paperwork as well as making sure you avoid any fines due to late penalties. If you have an accountant by your side such as the accountants in central London from Griffin Stone Moscrop & Co, you don’t have to worry about deadlines and keeping up with changes in legislation, as they can do all that for you. This will help you avoid any hefty fines and taxes simply because someone else is keeping track of it. Fines can take a big chunk off your earnings because they can range from about £150 per day for the late submission of your yearly accounts to as much as £1500 for a delay in the submission of your paperwork for six months. And these are just late penalties – what if you also have to deal with fines due to the incorrect filling in of forms for your self-assessment tax returns, corporation tax, or VAT returns?
Lastly, a good accountant can help you find ways to grow your business, giving you the right advice on when to make investments, when to venture out, when and how to take out a loan, and much more.