The best time to enlist the expertise of anyone who can help your business, is when you simply don’t have the skills to do it in-house.
That said, there’s a whole host of reasons to hire an accountant for your business. In this article, we outline seven of the most common examples.
1. When you start buckling under the weight of responsibility
As a business owner, the weight of your to-do list can feel like ten tonnes. That sort of pressure can really take its toll.
If you find that your mental wellbeing and stress levels are starting to suffer from the workload, you need to delegate.
Passing the task of managing your bookkeeping and accounts onto an experienced professional can free up invaluable time, headspace and peace of mind.
This will help you to focus with greater clarity, and make better decisions for your business.
2. When you need some advice on your tax relief options
An accountant will do more than ensure you submit your tax return by the deadline. They will also be able to identify opportunities to claim tax relief.
Depending on the size, sector and circumstances of a business, there are a multitude of relief options to take advantage of in order to reduce expenditure.
It’s an accountant’s job to stay on top of these opportunities, and ensure you’re reaping the rewards of any benefits available to your business.
3. If you’re facing a challenge with your cash flow
When you run into financial difficulties, or any issues with your cash flow, having an expert on hand can help guide you out of the woods.
It’s easy to lose track when dealing with business finances on your own. Outstanding payments and forgotten invoices can all tip the balance of your income and expenditure, which can be extremely damaging to the health of your cash flow.
An accountant will help keep you on track and take care of all those important details and deadlines.
4. When you’re ready to register your business for VAT
Your business doesn’t need to register for VAT until your taxable turnover reaches £85,000. Once you reach that point – and if you aren’t already working with an accountant – it’s a great time to enlist the support of an expert.
Having an accountant helps to ensure that you’re doing everything you should be to satisfy HMRC, whilst staying as tax efficient as possible in the process.
5. If you’re looking for guidance on Making Tax Digital (MTD)
Making Tax Digital (MTD) is a government initiative for turning tax administration into a fully digital system.
It aims to “make it easier for individuals and businesses to get tax right and keep on top of their affairs”.
As of April 2019, businesses with VAT taxable sales greater than the registration threshold must keep digital tax records. In 2021 and beyond, HMRC also plan to expand the scope of the initiative to include Self Assessment, too.
Hiring an accountant helps make the transfer to MTD simpler for you and your business. It’s also useful to get to grips with cloud-based accounting if this isn’t something you’re already using.
6. When you’re looking to expand, invest or secure funding
Some businesses owners are unaware that an accountant can help you create a really solid business plan.
Having an expert contribute to the creation of your business plan will stand you in much better stead when it comes to applying for grants, loans, funding and investment.
These injections of cash are often significant accelerators for small or start-up businesses, sometimes even the difference between success and failure.
An accountant will help you position your business in a way which is genuine, whilst appealing to investors and funding providers.
7. Once you start employing staff
When your business is in a position to start recruiting employees or paying dividends to directors and shareholder, it’s wise to seek support.
An accountant will manage your PAYE calculations, and offer valuable advice on allocating funds efficiently.
As well as the logistics of payroll, accountants can also offer advice about your additional outgoings, such as salaries and wages.
So what now?
Signing up for a financial service that cripples your cash flow is counterproductive! Compare pricing and accounting services.
Looking for more information before making a decision? Check out our advice on knowing whether an accountant will be good for your business.