Why You Should Appoint an Accountant for Your Tax and Accounting
Whether you’re a self-employed sole trader or the owner of an SME, you’re probably debating whether to go down the DIY route or hire professional tax and accounting services. While the former option may sound appealing, especially if business is slower than usual due to the pandemic, appointing an accountant is almost certainly the way to go.
In truth, the reasons for taking this route are near endless. Here are six of the best.
#1. Financial savings
The chief reason for resisting the professional route comes from the perceived financial savings. After all, not paying a few hundred pounds for an accountant’s time will have a positive impact on your cash flow. Right? Wrong.
While an accountant will charge you for their time, they will also generate significant savings on your behalf. Their knowledge of tax deductions, as well as financial support that may be available due to the current pandemic, will yield savings that easily outweigh their fee. In fact, even their work is tax-deductible.
For the sake of your bottom line, appointing an account makes a lot of sense.
#2. Time savings
Right now, business might not be booming. However, that doesn’t mean you have time to waste. On the contrary, you’ll need to focus your energies like never before as you look to come through this difficult patch. Distracting yourself with tax returns is far from ideal.
An accountant may be able to complete your returns in a few hours, but it’ll take you twice as long. Moreover, you’ll still probably miss out on a few tax deductions. Crucially, though, it will stop you from actively working on the business model. Worse still, the inevitable stress it brings can cloud future decisions.
Time is your most valuable resource. If an accountant can help maximize yours, embrace it.
#3. Avoid taxman hassle
First and foremost, HMRC wants businesses and workers to file their taxes. Nonetheless, in an ideal world, they’d probably rather everyone filed through a certified accountant. Aside from increased organisation, it ensures that everything is above board and accurate.
With this in mind, you are more likely to receive a visit from the taxman to verify the legitimacy of your receipts and other features. Even when you have nothing to hide, this is a time-consuming and stressful process. As such, it would be far better to avoid it altogether. Submitting via a certified accountant should do this.
And even if they do want to speak, you can advise them to go through your accountant.
#4. Help beyond accounts
When you think about an accountant’s role, you primarily consider tax returns and filing accounts with Companies House. In reality, their expertise can extend to an array of different aspects, such as PAYE and interactions with HMRC.
The fact that accountants can also run a full audit of the business is telling. Their insight has the potential to tighten your purse strings during this important period without compromising your output. Using a service that offers audits, staff accountants, project accountants, and more can truly transform your approach to business.
Once you combine those services with the core tax features, their value is even greater.
#5. Support future financing
The immediate benefits of using an accountant are plentiful. However, the impact on your long-term future should not be overlooked either. Accounts will be prepared correctly before being presented in a binder. This official status can serve you well in later years.
While you may not need to worry about this right now, there is a strong possibility that you’ll seek financing through a bank loan or private investors at some stage. When you make an application, the accounts will aid your cause. Once again, their advice could be vital as they’ll ensure that you’ve taken all issues into account.
Given that future financing could save your firm or facilitate an expansion, this feature is key.
#6. Peace of mind
Finally, there is no doubt that appointing an accountant or accountancy firm will deliver confidence and peace of mind. When you take the DIY route, a cloud of self-doubt will circle overhead long after you’ve submitted your returns.
Likewise, you’ll be left wondering whether improvements could be made in various aspects of the business. Working with a professional team of accountants that are passionate about helping UK businesses will allow you to put those fears to bed. Smart Solutions is the only answer you need.
Take the first steps by arranging a free consultation today.