One easy method of getting a tighter grip on your business’s finances is to employ the services of a chartered accountant. Whilst it can seem like a luxury that comes at a considerable cost, using a chartered accountant has many benefits and in the long term they can help you grow your business and save substantial amounts of money. It also gives you, as the business owner, one less thing to manage completely on your own, which can lead to costly errors. You do not have to employ someone fall time either, there are a number of accountancy firms that will look after the accounting of your business externally. If any businesses are thinking of getting some help with their finances, it might be worth looking at these fincare accountants, for example, to see if they could help your business to stay on top of financial issues. Below are just 4 of the reasons why your small business should be using the services of a chartered accountant.
Throughout the financial year there are many expenses incurred that can be used against the impending tax bill. For some business owners it is difficult to know exactly which expenses are eligible and generally speaking, working out the tax deductions is often left until just before the deadline. Every business wants to lower their tax bill to what they legally have to pay, this does not account to tax avoidance it is purely running a tax efficient business.
A chartered accountant through having full knowledge of your accounts will be able to keep track of all deductible expenses throughout the year – ready for submission at the HMRC deadline. Some of the most commonly forgotten items to account for are depreciation, personal expenses and the use of home office space. An accountant ensures that all of these elements are accounted for and you can be comfortable in the knowledge that your tax deductions are the highest they can be. Even if your business is currently not trading, you will likely still have a few financial obligations when it comes to HMRC, and an accountant will be able to help you answer questions like “do i need to file accounts for a dormant company?” and guide you through the process so that you get this right first time and avoid any pesky fines.
Finances are one of the most important aspects of any business and if you, as the owner, are spending a significant amount of time trying to manage the finances there are potentially other parts of the business being detrimentally affected. Using an accountant relieves you of not only the time spent on the company finances but also any worry that you may have made a mistake in a financial report or made a wrong decision financially. It is also a way of safeguarding against any potential fines or visits from HMRC due to late or incorrect submissions as part of an accountant’s role is to ensure the on time and accurate submission of all legally required financial documents.
If a business falls foul, or at least is suspected about falling foul of financial regulations then the tax office may look at conducting an audit of the business. These audits are detailed and can cause quite a lot of stress for any business owner. Obviously it is not only falling foul of regulations that can prompt an audit, there are many different reasons why the finances of a business go through this procedure – it may be down to a simple mistake on a tax return, although the majority of the time an audit will take place when the management are running the finances, rather than an accountant.
Accountants keep all information relating to the businesses finances and due to this efficient nature of your records, an audit is something that you would not have to worry about. In the rare instance that a full audit was going to take place an accountant would be well placed to ensure everything was readily available for inspection. It is important to note however, that contracting an accountant because of an audit would not necessarily be too beneficial as it would be dependent on the financial records that had been kept before their appointment.
An independent person looking after your business’s finances can become a strong partner and help you shape and progress your business further. As they know your company’s financial situation down to the minutest detail, they are well placed to advise you on how you can grow the business. Accountants also have vast professional experience and generally would have worked with a range of businesses of all sizes, so you can benefit from this knowledge and experience through engaging them and asking for advice on your business.
This impartial advice can pay dividends as they have the inside knowledge of your business, just without the emotional attachment. This leads to sound financial decisions – which in the early years of a business can make or break it. Whilst an accountant can be looked at as a substantial cost, it should be seen as an invaluable asset.
Article provided by Mike James, an independent content writer in the finance sector – working alongside a selection of companies including Chartered Accountancy firm Wellden Turnbull, who were consulted over the information contained in this piece.