Working for yourself is no matter a big concern, provided, when you have to become a watchdog for every penny coming in, to the penny going out. Checking it by yourself is a big job in itself, yet if you look your accountant as just a mere expense. But there are various reasons why you need to spend a little bit extra for getting a good accountant can literally help you grow your business. Simply check out the importance of having an accounting in your business.
- Saving your precious time
When you work for yourself, your main emphasis is to create a lucrative business that can meet all the obligations of the work you have won.
When you have lots of paperwork to do, keeping sideways of what you have spent and what comes in can take lots of time and literally consume much of your time away from your task in hand.
Recruiting an accountant who is conversant with the current tax laws, rules and regulations and deadlines, not to mention the one who can understand fully on what format HMRC needs all the information, can help saving you hours of time navigating through the website of HMRC, leaving you to utilize your valuable time more effectively.
- Minimize your tax liability
Saving your money is your top most priority, definitely you need a good accountant who can help you do so and provide you a good counselling relating to the most tax effective methods of doing your business.
Ascertaining the efficient way to operate-whether it is a limited company or a self-employed -and the most tax effective manner for flushing money out of your company is something you will be guided on, depending on your own situations.
They will visit through paying yourself by way of dividends, knowing what you can and can’t claim via your company expenses and the advantages of employing the flat rate VAT scheme.
The Flat Rate Vat Scheme (FRS) is usually a government incentive wherein VAT on invoices are chargeable from you at the standard rate (let’s say 25% in 2015) but need to pay HMRC at a lower percentage.
Suppose you are an IT Consultant, with a few VAT expenses which are chargeable. So, you need to pay only 15.5% to HMRC on the flat rate VAT scheme, keeping aside the balance after deducting as your profit.
You will then be getting a good advice by your accountant on whether the FRS will suit you and financially stand beneficial for your business or not.
- Avoid obtaining exorbitant tax penalties and fines
When you are having an accountant with your company, it means you don’t need to be panic about impending dates, be aware of the current legislation and ensuring that no tax deadline be ever missed by them.
If you are not having an accountant, then you will miss all your way out of doing tax submissions or can incur any fines which can range between £150 for a day in case you submit late annual accounts to a massive £1,500 fine for a six month delay.
It is not just limited to this only, the penalties incurred upon late submission of your annual accounts-this doesn’t involve the fines upon delay, or submitting your forms inaccurately for your self-assessment tax return, corporation tax and VAT return. You don’t have to worry if you have your accountant to take care of all these.
- Planning for your business doesn’t come easy
Having an accountant is a boon to your business as they will help you plan for your business growth in a coherent manner.
Generally there are many clients who have a dedicated accountant, so by having an accountant will make your business succeed as your accountant is responsible for a proactive approach because of the knowledge of ins and outs of your business.
- Tax Worries shouldn’t take a toll on your health
Managing tax is a cumbersome process. Although HMRC’s guide to expenses consists of more than 100 pages, so who will take care of, of course your accountant itself. Your accountant becomes responsible to make a claim to HMRC for your tax relief. By organizing yourself ensures to involve everything, you are eligible to in any claim or return which you make to HMRC.
Hence, your accountant is your guide who will assist you in all your accounting and tax related issues while at the same time you have a peace of mind in running your business efficiently.