Solestic Advisory seven reasons article

Seven reasons why you need an accountant

Hiring an accountant to look after your business finances can be savvy. DIY finances aren’t for everyone, especially when your accounts start looking rather complicated. Whether you’re just starting out or up and running but looking to expand, here are some ideas about why you need an accountant to help your business develop.

Saves you time

Most people start businesses doing what they love and have always dreamt of doing. For most people, this unbridled enthusiasm generally doesn’t extend to spending hours on financial records and paying taxes.

Accountants can help you focus your business efforts on the critical (money-making) stuff while they take care of the other necessary (tax-paying) stuff. It’s a win-win; you don’t get to waste time crunching numbers, and you get to spend time making more money.

They’re up-to-speed

Tax deadlines, limits, and amounts due have an annoying habit of changing semi-regularly. Overlook one critical change, and you could massively underestimate your next tax bill.

Using accountant guarantees that deadlines are met and that you’ll be paying the correct proportion of tax at the right time (and to the right people). Understanding the system’s workings can be a bit of a minefield; an accountant will help you tread carefully.

You could save money

Think hiring an accountant is expensive? Think again. A good accountant will be able to highlight any areas where you could be saving money (such as claiming for all of the expenses you’re entitled to), which means that not only could they drastically cut your tax bill, but they could even end up paying for themselves.

Hiring an accountant has never been cheaper; check out our services – from a simple tax return to comprehensive account management.

Alternatively, why not check out our infographic on how much an accountant could save you?

Business support and advice

It might be that being a sole trader isn’t very financially efficient anymore and that you’d be better off running as a Limited Company or operating through an Umbrella company.

Accountants aren’t there to help with finances; their support can improve your whole business setup. They can cast a beady eye over your projections and financial plans if you’re starting. As your business grows, they’ll be able to run you through the various options available and point you in the right direction if you decide to change the structure of your business.

Full account management

Although you’ll still be legally responsible for their accuracy, you can hand over complete management of your accounts to your accountant. This means they’ll be able to do everything on your behalf, from completing your tax return and managing PAYE to filing your reports with Companies House. You could even nominate them to handle your communication with HMRC. Have you no more wasted hours listening to dreary hold music? Yes, please.

You might need an investment

At some point, most businesses will need investment. Whether from a bank loan, business angels, or investors, you’ll need a solid plan detailing your forecasts and accounts to date.

An accountant can offer guidance, ensure you’ve thought of everything, and reassure those looking to invest that your figures are accurate and realistic.

It makes life easy

Spreadsheets, invoices, and tax returns aren’t for everyone. If the thought of just opening up your accounts gives you a spreadsheet-induced migraine, hiring an accountant would be a good shout – and some may even provide you with access to the software, so you get a hands-on picture of your finances (here’s a guide to the different types of accountant you can use).

An accountant will keep your accounts in order, and you’ll also have the added assurance that you won’t be penalised for late payments. Plus, you’ll get to spend January feeling smug about having a hassle-free tax return; now, who said you couldn’t buy happiness?