Do I need an Accountant?
Updated: Feb 14
One of the questions we're always asked by new businesses just starting out is "Do I need an Accountant?" Well, in short, perhaps not - but there are many benefits to partnering with an Accountant from day one, benefits that go far beyond just having someone to complete your tax return at the end of the year.
Working with an Accountant may provide the push that many small businesses require to get off the ground. It will also offer you complete assurance that you are meeting your financial responsibilities and providing Her Majesty's Revenue and Customs (HMRC) with accurate information. Let's discuss a few key points that should help you determine your responsibilities as a small company owner and whether you require the assistance of an accountant.
Accountants for small business: Legally speaking
Regardless of whether you're a small business just starting out or have been operating for a number of months, the law is tight when it comes to satisfying your financial commitments. Although you're not legally required to appoint an accountant to handle your business' finances, you are legally required to ensure they are kept in perfect order.
These are some just laws and obligations you will have to meet as a small business owner.
Make it official. If you're choosing to register your business as a limited company (Ltd) you will need to register yourself and your new venture with Companies House. The deadline for doing this is 3 months from the date the business was started. If you're choosing to operate as a Sole Trader, you will need to inform HMRC.
Value Added Tax (VAT). If you anticipate your turnover reaching £85,000 or above, you will need to register for VAT. You will then need to submit a quarterly VAT return on behalf of your company.
Tax returns. Regardless of registering for VAT, You will still need to complete a TAX return each financial year. This is a requirement by HMRC to ensure you have paid the correct amount of tax. This will need to be completed correctly and you will need to keep accurate records of income and expenditure throughout the year - An accountant is an expert in knowing what you can and cannot claim to offset your tax bill, potentially resulting in you paying less tax than you initial thought you should.
Bookkeeping - can get messy! Keeping track of your spending and income is vital to ensuring you're submitting the right tax information to HMRC. Beyond this, bookkeeping is also the main way of knowing your net income, providing you with a full understanding of whether you're business is going to make a profit. Also, the shoebox full of receipts you have on month one will soon become a file full of confusion, so adopt software and keep it organised as early as you can - just ensure it's coded correctly.
The truth is, many small business owners will struggle to meet and keep on top of these obligations. That's understandable, why would you understand the ins and outs of tax-free allowances, bookkeeping, tax returns and VAT? The simple answer is - you wouldn't - unless you were an accountant - after all, that's just a snapshot of what we do, and that's what you pay us for.
We can help you ensure your business starts off on the right foot, we've met people like you, who are in your situation, and asking this question, many times over. We've worked with them to help make sense of their business finances, get to grips with their requirements and take the hassle out of accountancy - after all, starting a business is enough work!
Can I afford an accountant?
At Accountable, we only offer completely tailored packages to suit your exact requirements - Our clients find this the most cost-effective option, as you only pay for what you really need, at the time you really need it. Think of us as your accountancy partners, taking care of the finances, while you take care of running your business. We also allow you to split the cost of our service over fixed, monthly payments.
One of our friendly in-house accountants & tax advisors will take care of everything for you, that's a promise. You will receive unlimited, on-demand, real-human support too, that's another promise. And the best thing? It's all included in the price - which you can guarantee will be tailored exactly to your business, so you won't be overpaying. So give us a call or drop us a message today for a free discussion around your business and why so many people just like you have chosen to partner with Accountable Accountants.
Tel: 0117 3255523