When you first set up in business, you’re surrounded by people giving you advice. Much of it is well meant, but not all of it is helpful.
You’ll find people who insist that you don’t need an accountant and that you can do your accounts yourself. Others tell you that an accountant will pay for themselves, in the tax they save you. So here’s a checklist you can use to decide whether or not you need an accountant.
Are your business tax affairs simple?
Some businesses only issue one or two invoices a month, and buy little more than paper for the printer, or a broadband connection. They aren’t registered for VAT, they don’t have employees, or rent premises, or buy and sell products. They are run on a sole trader basis. These businesses are simple, and if you have this kind of business, you may be able to use HMRC’s online self assessment tool, and get HMRC to work out your tax for you.
However, add in your personal tax circumstances and things may become less simple. Similarly, certain business sectors, such as property, are less simple. So it may be worth booking an appointment with an accountant to talk through the options. Cheltenham Accountants Randall & Payne are a friendly firm who won’t try and sell you services you don’t need. However, they can alert you if there are complications to your particular business and personal affairs that you weren’t aware of.
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Do you trade as a limited company?
You may have set up your company through helpful Cheltenham accountants. Although you can submit your own accounts, the relevant corporation tax regulations, expense protocols and company law are complex. Most people get help from an accountant to prepare the financial statements that have to be submitted each year. Any items such as directors’ loans can also complicate matters, and are better dealt with by an accountant.
Are you expanding?
You may have started as a sole trader, but have expanded, and with a turnover above £85,000, now need to start charging VAT.
An accountant can help advise on accounts software that you can use to make your life a lot simpler, and keep things in order. The same goes for payroll, if you start to employ people.