Filing your tax return can be a long, arduous process, especially if you’re a new business owner who has never completed a self-assessment before. It can be tempting to tackle this yourself, but making mistakes in your bookkeeping can result in some serious fines further down the line. An accountant might seem like an unnecessary expense at the start of your journey, but there are lots of reasons why so many entrepreneurs use their services. If you’re not convinced and would rather use your limited budget on other products and services, make sure you read this blog before making any big decisions.
1. An accountant knows exactly what you need
When you pay an accountant for their services, you’re not just paying for an administrator or a calculator. You’re paying someone who has years of experience filing tax returns and dealing with the legalities of small business finances. Your accountant will know exactly how to create your annual income statement and register for VAT should you need to. When self-educating yourself about taxes, you’re in danger of missing some important steps or even filing some forms that don’t apply to you.
2. Enjoy complete accuracy
Even if you’re using accounting software, there are instances where your lack of expertise could cause you to make mistakes. This could mean forgetting about certain invoices or neglecting to mark some expenses as tax-deductible. Combine your accounting software with an accountant’s expert opinion to ensure that all of your financial records are of a high standard.
3. Save money
While you might be paying more for your accountant’s services, their knowledge can help you to claim back more tax than you would have been able to without their help. They’ll be able to identify any areas where you’re paying too much and find loopholes that you haven’t been making the most of. What’s more, you’ll never have to pay another late fee because your tax return will always be on time.
And don’t forget, you’re saving so much time by relying on an accountant to take care of your finances. If you were to add up the number of hours you’d need to spend making calculations and reading official legislations then this would likely amount to much more than the fee your accountant charges.
4. Expert advice
An accountant isn’t only there to make sure you’re filing your taxes properly, they can also provide you with in-depth financial advice. This is invaluable for businesses that are trying to grow and aren’t sure how to make the most of their budget. Whether you’re having cash flow problems or are having trouble with international taxes and customs charges, your accountant can provide you with a new way of thinking. What’s more, they can also help you make the best possible decision with regards to loans, advise you on repayments and even help you find a better deal.
Every small business can benefit from the services of an accountant, so do some research and find the right one for you today.