One of the constant dilemmas of sole traders and small business is deciding whether to do the accounting work yourselves or to bring in an expert into the business. Employing any professional service including an accountant can be expensive. However, accountants can sure eliminate your workload and therefore, give you more time to concentrate on the actual running of your business.
Here are the main reasons why you need an accountant:
- An accountant can advise you on your company structure such as whether you should remain as a sole trader, expand into a partnership, or become a limited company.
- An accountant can forecast your cashflow for the current year and for the following few years ahead that will help you with decision-making.
- An accountant can help you make up for potential pitfalls and make financial plans including changes introduced in the UK budget, fluctuations in inflation and interest rates, or changes to VAT, or any regulation that might affect you.
- Most importantly, an accountant can aid you with tax management and planning. They don’t just make sure you pay the right tax and avoid penalties from HMRC but they also ensure that you’re not missing out on tax breaks or any expenses claims that you’re entitled to.
The cost of hiring an accountant varies depending on the number of factors such as the services mentioned above, the size of your practice, and how often you use them for their services. This is why it’s important to know whether the potential benefits offset the costs involved of hiring an accountant.
If it is, then hiring an accountant it’s the right thing to do. When looking for accountants, opt for accountants that have professional credentials and members of accountancy organisations such as Association of Chartered Certified Accountants. This will make sure that you will pay the right accountant and that your business will fall into great hands.