Having a small business can be hard enough without having to worry about your accounts, which is why many SME’s choose to outsource to specialised accountancy services. There is no legal requirement for you to appoint an accountant, but for many it provides peace of mind having an accountant to guide you through to each step of your accounts. One Click has a full guide on SME flate-rate accounting.
For a small monthly fee, companies such as One Click Group will provide you with access to professional bookkeeping systems that will track your monthly and quarterly returns, whilst you receive professional advice on the financial direction of your business income.
As mentioned, using an accountancy service is not mandatory, but there are many reasons why most limited companies in the U.K use accountants to direct them on their finances, especially with IR35 legislation throwing a spanner in the works.
Those who have not used accountancy services before aren’t aware of what exactly the service involves, and it is a lot more than simply compiling your reports at the end of each year and submitting tax returns. To start with, there is the matter of registering your company with all the necessary departments such as VAT, PAYE and others you may not have even considered.
There is also the setting up and running of your company payroll system, as well as ensuring it complies with all the current regulations. Accountants help provide any dividend admin and tax planning advice you may need, as well as bookkeeping services, handling company related correspondence with HM Revenue & Customs and providing you with references.
Naturally when owning a business, you want to spend your time and energy focusing on ways to grow and profit, which means dealing with the admin side can add unnecessary time and stress to your life. An accountant on the other hand, is happy to handle every financial aspect of the business.
Accountants understand the nuances of handling tax and HMRC, so know exactly what to submit and when. Any advice you require regarding your expenses, tax or otherwise can be easily answered and then advised. Your accountant ultimately wants to ensure you are earning as much of your hard-earned money as possible and will continue to do so in the future.
Despite all of this, you may decide that you would prefer to handle this alone, but in doing so you will need to ensure that you are properly maintaining all your accounts and that they are adhering to all the current guidelines. All your account information must be submitted on time, be presented correctly and must have complete accuracy to ensure you are meeting all your business’ obligations.
There must also be a consideration of how much time you estimate you will have to spend preparing all your accounts, maintaining bookkeeping and dealing with any HMRC enquiries. In business, time is money, and it is an accountant’s job to save you on both.Your job primarily is to focus on your business without constantly worrying and undoubtedly utilising accountancy services will achieve this.