What are the Benefits of Hiring an Accountant for Your Small Business?

Whether you’re just starting out as a self-employed sole trader, run a small venture that employs others, or have been active for awhile but are looking to make the best use of your time – hiring an accountant to oversee your accounts, and advise you on your finances can be a fantastic business decision.

You might be wondering why accounting is important for small businesses, or if you even need an accountant – and whether the cost of hiring an accountancy firm is actually worth it.

The right accountancy service could benefit your business in multiple ways, including saving time and money, potentially reducing your tax bill, improving your cash flow, and helping your business grow successfully.

Saving Time and Money by hiring an accountant

Saving Time and Money by hiring an accountant

As the head of your small business, your time is probably the most expensive and valuable in terms of costs – and when you’re tied up doing your taxes, updating your cost sheets, working out your expenses, and all the other little tasks that have to be done on a regular basis, you’re not focused on bringing in money or working for your business.

Of course, it’s important to work on your business, but having an accountant, who knows exactly what reports and records are needed, and can fill in forms without having to spend time examining what they mean, and whether they’re necessary – can be a massive time saver.

The potential financial savings should also be appealing. The right accountant won’t just fill in your forms and be done – they’ll give you advice on how to best manage your cash flow, the benefits and / or reliefs you may be eligible for, and the most effective ways to use your personal allowance to reduce your end of year tax bill.

Meeting Deadlines and Staying Compliant with HMRC Requirements

Depending on the size of your business, the way it’s set up, and the different elements of the tax system that you need to deal with (such as VAT, Capital Gains, Self-Assessment, etc), there are a whole host of different deadlines that you’re legally obligated to meet – and specific ways in which your documents need to be submitted.

Rather than spending your time and energy on trying to work out when everything is due, and how you’re supposed to present each different form, hiring an accountant to do this for you makes life a lot simpler and less stressful.

Accountants know when the static deadlines are (such as 31 January for Self-Assessment tax returns), and they can work with you to determine any fluid ones (such as VAT payments which need to be made within 1 month and 7 days of the accounting period) – and help you manage your calendar so the documents are always ready, and a deadline is never missed; and considering most HMRC missed deadlines come with fees – it’s definitely a plus!

Taking the Stress Out of Software Choices

HMRC has been rolling out a program called ‘Making Tax Digital’ (MTD) for the last few years, and whilst it doesn’t affect all businesses yet, it will do.

Having access to the most appropriate software to handle your finances isn’t just a cost saver – it’s a time saver as well; if you only need to provide the information once, and it’s then formatted correctly to be submitted directly to the tax office, you’re not going to have to spend time making changes, altering the style, and panicking at the last minute if it doesn’t upload.

The right accountant will have a variety of software (such as Xero, Sage, Quickbook, etc) that they’ll show you how to use, and advise you on which of them best fits your business needs.

Paying for Experience and Expertise

When looking at hiring an accountant, you’re not just paying for their services – you’re benefitting from their years of financial experience and expert knowledge of UK taxation laws and legislations.

You might be able to keep your accounts by yourself, but if you’re not familiar with HMRC’s complex system of benefits, allowances, and reliefs – you could be missing out on all sorts of savings!

Your accountant will be able to give you strategic business advice that is carefully formulated to lower your tax obligations, meet your legal requirements, and enable you to make sound financial decisions.

If you’re looking to bring an accountant into your business, get in touch with our experts today – we can provide you with a consultation, and the services you need to make tax less taxing, and see your finances flourish.

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