If you’re a startup or small business trying to save yourself money by doing DIY business accounting, you may miss out on savings from allowable expenses and tax benefits you didn’t know existed.
Partnering with the right accountant can save you much-needed cash every year. They will provide a variety of services to save you time, money and stress when you have to produce financial reports and complete tax returns. And they will use their expertise and knowledge to minimise the amount of tax you have to pay and ensure your business remains compliant.
Taking the pain out of tax
Everyone must pay tax, but there are many ways you can legally save money on your tax bill. An accountant can help you with your tax planning and reduce your tax burden.
And while you’re focusing on running and growing your business, they’ll deal with:
- Tax and regulatory paperwork
- Annual accounts
- Preparing VAT returns
- Tax and National Insurance calculations
- Communication with HMRC
Business advisory services
The advisory services accountants provide are invaluable to your business, helping you plan, track and monitor your budgets and make savings.
An accountant can provide you with objective, professional advice and insight on your cash flow, forecasts and business performance. They will help ensure your business decisions are well informed and evidence-based. Areas they can help with include:
- The legal structure of your business
- Sourcing funding and investment
- Business planning
- Marketing plans
- Pricing and margins
- Staffing and payroll
- Balancing personal and business goals
- Choosing financial software
If you own an SME or startup, you probably have lots of different roles. You’re likely to have a basic understanding of finance but may lack in-depth knowledge or the time to do the accounts.
A professional accountant can streamline your financial processes and ensure your records are correct. This will minimise the chances of your business being fined for not complying with legal regulations.
If you’re manually entering expenses into a spreadsheet and collecting paper receipts, it will be difficult for you to stay on top of incoming costs. The chances of making mistakes increases and it’s unlikely you’ll have full records of expenditure.
Your accountant can help you implement an expenses management process that helps you manage your expenses efficiently and gives you greater control over your company’s finances.
What about sole traders / sole proprietors?
If you are a sole trader, you may think your business isn’t big enough to need an accountant. Or you can save yourself some money by sorting out your finances yourself.
If you are employed and have a side hustle that also makes you money, your financial situation will be more complicated.
The right accountant can help you avoid costly mistakes when completing your tax return and provide you with free business advice.
Accountant vs accounting software
Some businesses may consider investing in business accounting software a replacement for an accountant. Using accounting software will benefit your business by making record-keeping easier, automating financial information and giving you insight into financial performance. However, it won’t offer add-ons like advising on complex issues and ensuring your financial reporting is legal and correct.
The solution? Use both. Give your accountant access to your accounting software so they can quickly see your business information and financial reports. They will then be able to provide guidance to help your business operate legally and successfully.
What’s your time worth?
Still not convinced an accountant will save you money on your business accounting? Look at the bigger picture and work out how much your time is worth. Dealing with your accounts and tax calculations may take you hours and there’s a risk you’ll make errors.
An accountant will do the work in a fraction of the time. Is it worth paying for a couple of hours of their time to have the confidence that your finances are in proper order?