If you have recently set up a new company, or you have been managing your business’s finances independently up until now, there are many ways that hiring an accountant can be a huge benefit to the overall growth and success of your business.
There is no legal requirement for a limited company to have an accountant doing its books, therefore you can opt to prepare and submit the accounts yourself.
However, with government legislation constantly changing, and important deadlines that could result in costly penalties if not met, it is important to evaluate whether you have the knowledge, patience, and time to manage your finances yourself, on top of all the other aspects of running a business.
In this blog, we take a look at some of the reasons why hiring an accountant to help manage your limited company’s finances, can play a vital role in boosting your firm’s overall growth and success.
Time-saving
As a small business owner, there are so many crucial elements that come with running a business.
Keeping on top of your company’s bookkeeping, filing your tax returns, and submitting your annual company accounts can be extremely time-consuming.
Even with previous accounting experience, and the use of online accounting software, you may find that your time could be better spent focusing on other areas of your business, such as gaining new clients, generating profits, and managing the overall efficiency of the company’s day-to-day operations.
Cost
Some business owners will choose to take care of their own accounts to try and save money on hiring an accountant.
However, often this can often have the reverse effect, as not only is this cutting into your valuable time as mentioned above, delayed or inaccurate tax returns or company filings could lead to a whole range of nasty penalties and end you up in very hot water with HMRC!
Accountants are always up to date with what you need to do to be tax compliant. They can guide you through how to do this, and what legislation is relevant to you, making sure you don’t fall foul of any penalties that could arise.
Tax efficiency
An accountant can also save you money by making sure that your company doesn’t pay any more tax than it has to by helping you understand the most tax-efficient way to run your business.
They can provide guidance on how best to minimise corporate taxes and the best way to extract profits from your company, which will help the overall financial health of your business.
Filing company accounts and tax returns
At the end of it’s financial year, all limited companies must prepare:
You need your accounts and tax return to meet deadlines for filing with Companies House and HM Revenue and Customs (HMRC).
You will also need to work out how much Corporation Tax to pay. There are different deadlines for the filing and payment of corporation tax.
As a director of a company, you will also have to carry out your own self-assessment tax return once a year. This contains information on any salary taken as well as dividends.
This can be a confusing process, as directors often receive income from different sources.
By hiring an accountant to stay on top of all these different filings and deadlines, you have peace of mind that everything is in hand, deadlines are being met, and your company is complying with regulations.
Applying for a business loan or overdraft
An expert such as an accountant can significantly improve your chances of being successful when applying for a business loan or overdraft, and can help you make the right choices throughout the entire process.
Essential help when starting-up
As a new business owner, there are so many things you need to think about when setting up your business.
An accountant can offer a wide range of services that are tailored to businesses that are just getting started, from registering your business with HMRC, setting up a company bank account, choosing the right business structure, writing a business plan, financial forecasting and much more!
Summary
It is true that in business, sometimes you have to spend money to save money!
Hiring an accountant to look after your company’s affairs, make sure you are compliant, reduce mistakes, potentially save you money and provide you with valuable business advice, will give you the time back to concentrate on what you’re good at…. running your business.
How Blue Spire can help
At Blue Spire, we provide services for all your business needs such as, Accounting, Bookkeeping, Taxation, Payroll, VAT, and Business Growth.
We want to make your life easier and that starts with making sure you feel welcome and reassured from day one.
| If you would like to speak to someone about outsourcing accounting support, then please get in touch with us today and we will be happy to help. |
