You’re not the first, and you certainly won’t be the last person to wonder what an accountant does all day, and whether you should have one. It’s a common question, which is why we’re here to guide you through the ins and outs of an accountant’s role, so you can decipher whether your business needs one.
What is an accountant?
Think of an accountant like a financial inspector. They examine your financial records to ensure everything is accurate, organised, and compliant with relevant tax laws and regulations. They’ll keep you on track and in check, helping you minimise your tax bill where possible.
What can an accountant help me with?
Accountants can do much more than file your tax returns every year. They can also help you:
- Improve your cash flow
- Launch a business
- Manage business debt
- Form a business strategy
- Budget properly
- Record all your expenses, so your tax bill is as low as it can be
- Remain compliant
- Be tax-efficient
Running a business can leave you super busy, which puts you in danger of missing things.
An accountant will help ensure you don’t, reducing the risk of HMRC penalties, or overpaying your tax bill. For instance, they’ll alert you if you’re heading towards the VAT threshold.
They’ll also ensure you’re as tax efficient as possible, such as guiding limited company directors towards taking the most tax-efficient salary based on your circumstances.
Do I need an accountant?
This depends on multiple factors. If you’re unsure, ask yourself the following questions…
- Are your taxes complicated?
- Can you file your tax returns on time and accurately?
- Do you have the capacity to cross-check everything?
- Are you aware of all your tax obligations?
- Do you understand what tax relief and allowances are available to you?
If you’re unsure, it may be best to have a chat with an accountant as soon possible.
Hiring an accountant is a much cheaper option than incurring multiple penalties from HMRC!
Where can I find an accountant?
There’re some things to consider first – like whether your want an online or high street accountant.
We have a guide to finding the right accountant!
Still struggling to find the perfect accountant? Check out different accountancy packages here!