Feel a little overwhelmed by how many things you need to cover as a business owner?
Do you need an accountant? Many people set up a business without using one as they can do all the regulatory stuff that is required of them online. HMRC has made it easier than ever to do it yourself – for Income Tax, Corporation Tax, VAT and Payroll – there are online facilities you can utilise.
So, the big question is why should you spend hard earned money on an accountant? Seeing that I get to answer this question frequently for prospective clients and the general man or woman on the street, here, in no particular order, are my top six reasons:
1. Assist in writing a well thought out business plan
Any successful business owner will tell you that having a well thought out business plan is key to any business. If you’re writing your business plan an accountant will help you. They will have specialist software to crunch the numbers and produce professional looking financial projections and reports that are realistic, and more likely to impress providers of finance.
2. Advise you on what business structure is best for you?
There are several possible ways of trading. You could be a sole trader, limited company or even a limited liability partnership. An accountant will explain the differences between each and help you choose the best one for your particular circumstances.
3. Support your bookkeeping and accounts
If you’re doing these on your own, things can soon become time consuming and complicated. Are the accounts that you produce good enough for you to run your business on? Is doing your VAT returns, running a payroll taking you away from growing the business. An accountant can take these off your hands leaving you free to do what you do best.
4. Regulatory requirements for Business Owners
These can be onerous. VAT returns; PAYE Real Time Information (RTI) reporting; filings at Companies House (of Company Accounts and Annual Returns, etc); personal and partnership income tax returns, corporation tax returns. These are just the common regulatory filings you may need to do. An accountant can help you with all these and more.
5. Applying for business finance
Accounts and finance applications prepared by your accountant will increase the likelihood of your bank lending to your business.
6. Facilitating the buying or selling of a business:
If you are going to buy an existing business, you should get an accountant involved. You can ask them to review the business’s accounts to advise you on the picture they paint. If it is a big deal then they can take things further by undertaking an in depth (due diligence) review.
If you have run a well established business for years, it’s likely you will have an accountant in place if you decide to sell the business or pass it on to the next generation. If you don’t have one involved you should consider using one. They should be appointed well before the proposed disposal. They can help you groom the business ready for disposal, advise on the tax consequences of any proposed transaction and assist you and the lawyers during the sale process. Accounts prepared by an accountant will be of more comfort to prospective buyers than self-produced accounts.
An accountant will help you at any stage of your business’s life cycle
A good accountant will help you meet the regulatory requirements that all businesses face. But in addition they will add value through the advice they can give. I really enjoy working with my clients because in many cases I have been with them from the start…and have had the pleasure in supporting their growth and maturity over the years.
If you would like a no-obligation meeting to discuss your particular business (whether you have an accountant or not) – please feel free to contact me on 01788 577 613 or email me direct on firstname.lastname@example.org