If you are one of those business owners who think that they don’t need an accountant for their small business, it is high time to debunk this myth. It takes time for a business to grow. The focus of every business owner is to keep the costs as low as possible when starting a business. This is exactly where you can seek the help of an accountant. They have years of experience in the industry and know how to run a business with lean operations and build a customer base. Even one wrong financial decision when starting a business can have serious consequences.
Do it yourself or hire an accountant?
Since the focus of every business owner in the early days is to save money, they think they can handle the small tasks of bookkeeping themselves instead of hiring a professional. This is a myth that you should debunk if you don’t want to end up paying more taxes and fines. Even if you have a limited number of clients, it becomes a challenge for you to manage the outgoing invoices and the incoming invoices with little knowledge in accounting.
You should know how to categorize invoices and assign the right codes for transactions. Also, your time is very valuable when you start your own business and there is no reason to waste your time on small accounting tasks. The best thing you can do is to spend your time on tasks that you are above average at and leave your accounting to a certified public accountant. They will also know how to make filing monthly financial statements smoother.
Visit also: Chartered Accountants in UK
A few more reasons why even a small business needs an accountant
Advice on the legal structure
Most accountants in the UK have been in the industry for years and know how to run different types of businesses, whether they are large or small. They understand that the legal structure of a limited liability company is completely different from that of a sole trader or an LLP (limited liability partnership). The right professional will not only advise you on the legal aspects but also help you design a legal structure that best fits your business. To get a better understanding of your business structure and tax system, he will ask you if you have employed people from the beginning or work from home.
Place importance on your finances
The importance of your finances in the early days of running a business can never be ignored. As time goes by, the numbers in your bank account will also increase. If you try to do your accounting yourself instead of hiring an accountant in the UK, there is a high chance that you will overlook some bills and they will become overdue. You could also make mistakes if you check the invoices manually. An accountant will implement the right accounting software so that you can keep track of all the invoices. Some of them even have automatic reminder features so you can be sure you don’t miss paying the bills.
Set up your business the right way
Although every business owner thinks they know how to set up a business, only an accountant knows how to set up a business for growth. As time goes on, the work increases and you need a professional who can grow your business the right way. The more people you employ, the more time you will have to spend on tax and PAYE implications. The accountant will enter all the information about your new employee into the system, so you know your tax liability from the start.
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