benefits of having an accountant

Benefits Of Having An Accountant

Benefits Of An Accountant

Many freelancers starting out, often put off getting theirown accountant due to the cost, feeling it’s a luxury

theysimply can't afford. However, by doing this they oftenset up their businesses poorly, pay too much tax andreceive hefty fines for late payments to HM Revenueand Customs.

As well as being a trusted business adviser andsomebody to provide advice on your tax affairs, a goodaccountant will also provide a host of other benefits,such as:


Time Saving

Many freelancers charge by the hour or bill clientsbased on the amount of time they have worked ona project. That means every hour you spend poringover paperwork and tax returns is time that youare not earning.

You want to spend your time where your talents lie, notspending valuable time on sorting out your accounting.Handing over the nitty gritty of your accounts to anexpert accountant will save you time that you could bebetter spent building your business.


Getting Things Right

Accountants are experts at completing taxforms. They need to be to ensure

everything iscorrectly filed with HMRC. Errors not only

costyou time but also could cost you

financially dueto fines and penalties.


Saving You Money On Your Tax Bill

Correctly filling in your tax return isn’t just aboutcompleting the boxes correctly. A good accountant willknow where you can legally reduce your tax liabilitywhich can soon add up and potentially cover the cost ofhaving your own accountant.

Tax regulations and allowances are always changing sounless you want to spend weeks each year keeping up todate it makes sense to appoint an accountant.

As a freelancer, you will also benefit from personal financialadvice, as your personal finances are so closely linked to yourbusiness income.


General Business Advice

Experienced accountants have dealt with all kinds ofbusinesses, meaning they are often well placed to givegeneral advice and help in growing your business, aswell as dealing with the details of your finances.

When you are starting out, and even if you’ve been inbusiness for years, it always helps to have other peopleto bounce ideas off and your accountant can give youobjective feedback and valuable advice, beyond thefinancial advice you will get from them. And if you doencounter any issues


It Can Save You Time

When you start working for yourself, be it as a contractor, a limitedcompany owner, a freelancer or consultant, your priority is togenerate business and fulfill the work you have won.

Having to do the paperwork, keeping abreast of what you have spentand what is coming in can be time consuming and actually take timeaway from the task in hand.

Employing an accountant, who is au fait with the latest tax laws, rules

and regulations and deadlines, not to mention one who completelyunderstands what format HM Revenue and Customs requires all theinformation, can save you hours and hours of time trawling throughHMRC’s website, leaving you to use your time more efficiently.


Reduce Your Tax Liability

A good accountant will understand how to save you money and be able to give you good counsel onthe most tax efficient way of running your business.

Knowing the best way to operate – whether it is as self employed or a limited company – and themost tax efficient way to take money out of your company is something they will guide you on, basedon your individual circumstances and situation.

They will go through paying yourself through dividends, understanding what you can and can’t claimthrough company expenses and the benefits of using the flat rate VAT scheme.

The flat rate VAT scheme (FRS) is a government incentive which allows you to charge VAT on invoicesat the standard rate (20% in 2014) but pay HMRC back at a lower percentage. For example, if you arean IT consultant, with very few VAT chargeable expenses you would only pay 14.5% back to HMRC on the flat rate VAT scheme, keeping the difference as your profit.

A good accountant will be able to give you the best advice on whether the FRS will suit and financiallybenefit your business.

http://www.sjdaccountancy.com/information-centre/self-employed-limited-company

http://www.sjdaccountancy.com/information-centre/self-employed-limited-company


Prevent You Receiving Hefty Tax Penalties And Fines

One of the key things when it comes to finances and working for yourself is keepingon top of the paperwork and avoiding any late penalty fines. For some people this ispart of the job that they are happy to keep up to date with. For others, having anaccountant makes sense so they don’t need to worry about looming dates, befamiliar with the latest legislation and ensures that they never miss a tax deadline.

Keeping abreast of your tax submissions whether with the support of an accountantor not will help keep your company bank balance healthier by avoiding fines whichcan range between £150 for a day late submission of annual accounts to a whopping£1,500 fine for a six month delay.

This is just the penalties incurred if you are late submitting your annual accounts –this doesn’t include the fines if you are late, or submit your forms incorrectly for yourself-assessment tax return, VAT return and corporation tax. Your accountant willkeep on top of your deadlines so you don’t have to.


Help You To Grow Your Business

A good accountant will be a great source of advice

and wisdom in helping you to grow and developyour business.

Typically clients are allocated their own dedicatedaccountant, so from day one you will work with anaccountant who will understand the ins and outsof your business and take great pride in seeingyour business succeed.


Remove Your Tax Worries

Tax is complex. Even HMRC’s guide to expenses is over 100 pageslong, so it comes as no surprise that so many small business ownersworry about their tax affairs.

Having to remember to: prepare your company year-end accounts,prepare abbreviated company accounts where appropriate, sort outyour personal tax return, prepare corporation tax computations andReturns, VAT calculation submissions, liaise with HM Revenue andCustoms, deal with Companies House and sort your payroll is aburden that can all be avoided with the right accountant.

Your accountant will prepare everything you need, saving you moneyand bringing you peace of mind, while allowing you to get on withrunning your business.