Why Do You Need an Accountant?
Part of being an entrepreneur is knowing when you’ve got too much on your plate.
Payroll & Workplace Pensions
When starting a small business, it’s likely that you will be interviewing candidates to employ or will be wanting to take a salary yourself. The total amount of wages to be paid to the employees must be recorded for tax and national insurance purposes.
There is also Auto Enrolment to consider, running a workplace pension scheme can be confusing and time consuming, and there can be some hefty penalties if certain deadlines are not met. It is now a legal requirement that all companies with employees must offer a pension scheme.
Doing this yourself increases the chance of errors, and therefore wrongly input information. To avoid any fines, we suggest employing an accountant who will be able to deal with HMRC and the pension provider on your behalf and file all the necessary returns without you having to lift a finger.
There’s no two ways about it, when you have just started up and are trying to network your company and boost your product/service at the same time, the last thing you want to be doing is sitting down in an evening with all your receipts and typing them into an Excel spreadsheet.
With an accountant, all you have to do is send your invoices and receipts through email and it’s all done! It really is as simple as that!
If you’re a sole trader, partnership or a limited company you need to submit a tax return to declare your income to HMRC and let them know your tax is due. This can be a complex subject, and if it goes wrong your company will be in big bother.
The best way to get peace of mind is by having this prepared by an accountant. Not only will you be less likely to be investigated, but you’ll be able to claim everything you’re entitled to. Also, think of how big your company is going to get with all that free time you now have!
Quarterly, if you have exceeded the VAT registration threshold or have voluntarily registered for VAT, you will need to file a VAT return with HMRC to declare how much VAT you are due to pay. You must submit a VAT return even if you have no VAT to pay or have a reclaim, or you could end up receiving a brown envelope at your door containing a surcharge. This can be frustrating and timely task for the new business but it’s necessary to keep your company running smoothly.
By hiring an accountant, you can rest easy knowing that they are taking care of all the things your VAT returns record, such as your sales invoices & purchases receipts and the amount of VAT you owe or the amount of VAT you can reclaim.
Still toying with the idea of doing it all yourself? We wish you luck, we really do. But consider this, you decide to do it all yourself but unfortunately you slipped up and have made an error. Now HMRC are investigating you and your stress levels are through the roof.
Accountancy services can offer you an advisor to help with services such as litigation, contracts of employment, company handbooks, acquisitions and corporate crime and bribery. So, there’ll be no catching you out by the time you’ve hired an accountant!
And remember, once you decide that you do need an accountant going for the cheapest option may be appealing but probably because they are not regulated, not only that but you’ll be unlikely to get the quality of work and service you require, and when things go wrong they could vanish without a trace leaving you completely in the dark. It’s always best to do your homework, ask them to show you their name on a regulators website like https://www.cimaglobal.com/About-us/Find-a-CIMA-Accountant/ for example.