Once you’ve found an accountant you can trust, it’s likely you’ll have a million and one questions for them. But it can be hard deciding which questions to ask first, and often a lot of the important ones we have in the back of our mind get lost in the abyss – until the second your meeting with them is over. Typical!
The best thing to do is compile a list of things you’d like to ask.
To help, we’ve listed some important questions your accountant can help you with.
Is my current business structure tax efficient?
Choosing a legal business structure can be tricky, but an accountant can talk you through the pros and cons of each one to help you figure out what’s best for your business.
Multiple factors come into this, for instance, how much you earn, whether or not you work in a high-risk industry, or if there’s one or more of you involved in the business. The list goes on.
You’ll find the most common business structures are:
- Sole trader
- Partnership
- Limited company
The good news is, you can always change your business structure – so nothing is set in stone if you realise you should really be a limited company yet you’re a sole trader. And if that happens, your accountant can help you incorporate your business.
It’s always important to speak to your accountant about this first though, as they’ll guide you on how to do it the right way.
What taxes do I need to pay?
We promise this isn’t a silly question, because it really is different depending on your business structure.
An accountant will make you aware of your tax obligations, how much you likely need to pay and most importantly, by when. They’ll also ensure you’re keeping the correct records, to make the process of filing tax returns much easier – and not to mention accurate. Which is important!
Do I need to register for VAT?
Again, this really depends on whether or not you exceed the VAT threshold. You may want to voluntarily register for VAT, but speak to your accountant about this first so they can discuss its pros and cons.
What financial records do I need to keep?
This is a very important question. Not only is it essential to monitor things like your income and expenses, but it also makes your tax returns a lot easier for both you and your accountant.
You need to keep records such as:
- Details of business expenses
- PAYE records (such as wages, and the deductions you take from staff for their tax and National Insurance)
- VAT records showing the VAT you collect or pay
- Financial documents like your balance sheets, cash flow statements and forecasts
You also need to keep your financial records for a specific period of time. So don’t erase everything the minute you send your tax return off.
How can I make my business grow?
An accountant can offer a wide range of advice, including for things like cash flow management and tax-efficiency. It’s a question you should absolutely ask your accountant when you get a chance.
Are there any upcoming changes I need to be made aware of?
This is something you absolutely need to know in order to keep your business compliant.
Your accountant should keep you up to date with new tax laws anyway, but it is worth asking them if there’s anything you need to be made aware of. Especially when things like the Spring and Autumn budget are announced!
If you need an accountant to ask these questions to, check out different accountancy packages here!