Whilst it’s true that an accountant can help take charge of all your tax returns and your payroll as well as make sure all your finances are kept up-to-date and recorded, they can definitely do so much more. The right accountant can help you through the various stages of your business’ growth, and they can do a lot more when it comes to giving you the right advice on crucial business decisions as well as preparing you for whatever major financial expenses you will have in the future. If you haven’t hired an accountant yet and are not quite sure about what they can do for you, here’s how an accountant can really help you in your business.
- Help with growth and development
There are many reasons why you can definitely make use of an accountant, even if you are just starting with your business. Accountants can be with you through the different stages of the growth of your business, from helping you formulate a business plan to helping you with loan applications and even tax investigations. This doesn’t necessarily imply that you need to hire an accountant full-time – you can benefit from even just a few hours of an accountant’s expertise, as long as you know what it is you require of them.
Also, if you think that it might cost too much to hire an accountant, look at it this way: how much time will you be able to save if you don’t have to do your taxes and instead relegate this time-consuming activity to an accountant? If it takes you about ten hours to fix your taxes and your rate per hour is a hundred pounds, then ten hours will already equate to £1000 in cost. There is also a risk of errors if you try to do it yourself, which only takes much more of your time, not to mention expenses in the form of fines and penalties. On the other hand, if you get an accountant to take care of your taxes, you may end up paying them less than what you would pay yourself, and you also have peace of mind with the knowledge that an expert is taking care of your tax and financial affairs for you.
- Advice about your business’ legal structure and business plan
Every business will have a different legal structure, and you may register as a limited company, a limited liability partnership, a corporation, a sole proprietorship, and so on, as confirmed by Griffin Stone Moscrop & Co and other accountants central London companies use for accounting and tax purposes. But before you decide which type of structure best suits your business, it would be best to consult with an accountant, so you know which legal structure will work for your needs. For instance, you could classify yourself as a sole proprietor or trader, which means that you may offset a few of your living costs and expenses against your taxes. But this also means you could be personally liable for various obligations, and if you fail to settle a bill with a supplier or default on a particular debt, your creditor could go after your personal possessions. Other structures will have other characteristics, and with help from an accountant, you can best determine which legal structure is the most suitable for you.
If you have an accountant, they can also help you with your business plan. You can come up with key financial projections with your accountant, which can then help you design a business plan which is more realistic and more professional.
Your accountant can be your best ally in other factors as well, including delegation, investments, the hiring of employees, government rules and regulations, and more. With an accountant on your side, you can deal with all these responsibilities and know that you are making the right decisions that will ultimately help your business move forward.