Whether you run your own business, or want to sort out your personal affairs, there are many ways you can benefit from the services of a good accountant.
What a good accountant can do for business owners
Whether you are just setting up your business or thinking of expansion, there are reasons for seeking help from an accountant at different times throughout your company's growth. From deciding on the legal structure of your company and its formation to sorting out your taxes, a good accountant can make your life a lot easier and free up your time and resources to do what you do best - running your business.
Many accountants now use online accounting software such as Xero to help keep your finances in check, it's worth seeking out a specialist xero accountant who can help with real-time business data.
This doesn't mean you have to employ an accountant on a full-time basis. Quite often, all you need is a few hours of their time each month.
Getting started
A good Thornbury accountant will explain the various legal business structures available, the pros and cons of each, and help you decide which one best suits you and the purpose of your business.
The options they explain will include operating your business as a sole trader or sole proprietor, which means you would work on a self employed basis, invoicing those you do business with under your own name. Or, you may set up your own limited company, which means you could possibly offset some of your living expenses against tax.
An accountant will help you carefully consider each type before you decide which one is best for you.
Free up time to do what you do best
In business, cost efficiency is key. And for this reason many small business owners see hiring an accountant as frivolous. However, when you look at how long it can take you to do tasks such as taxes, you will soon agree that this is generally not the best use of your time and resources.
When your time isn't taken up with admin and paperwork, how much is it worth per hour? For example, let's say you could typically charge £100 for your time. Now, let's say it takes eight hours for you to do your taxes. That's a cost of £800 to do your taxes yourself. And, as you're not an expert, there is always the risk you may have made some mistakes.
Instead, if you get an accountant to take care of these admin heavy tasks (such as taxes) for you, it’s more than likely that it would cost you less, plus you'll be reassured that they have been completed by an expert.
How a good accountant can help individuals
Unlike with business, there is no law that states individuals must hire an accountant to look after their affairs. However, a good accountant can make your life a lot easier and save you money in the long run. Here are just a few areas where an accountant could help you out by keeping track of your personal affairs:
- Keeping up to date with bank account and credit card statements to ensure they are correct and free of mistakes and fraudulent activity
- Ensuring all bills are paid in full and on time, therefore ensuring your credit score is maintained and not damaged
- Ensuring expenses that provide tax benefits are not overlooked
Looking after your income and expenses isn’t difficult but it does take time and effort. In this day and age when we are all so busy, sometimes it's easier to call an expert to help.
How you do it is completely up to you. You could hire an expert to look after it all for you or call on their help from time to time. For example, if tax self assessment takes up too much of your time, or you simply don't have the time to do it, a good accountant will prepare and complete the relevant forms for you.
But how do you find a good Bristol accountant? Well, the first thing that you need to know is that here in the UK, anybody can call themselves an accountant, whether they are qualified or not. The best thing to do is to check the status of any firm before you hire them. The first question to ask is: how many of their workforce are members of the Institute of Chartered Accountants (ICAEW) or Association of Chartered Certified Accountants (ACCA)? Don't let anyone pull the wool over your eyes with words like "professional" or "tax expert" – they mean very little without the qualifications to go along with them.
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