Top 5 Benefits of Business Accounting
One of the critical duties a person should confront when starting as a freelancer, or even as a small firm, is your tax issues Every penny counts when working for yourself, from earning and spending. Keeping track of everything is a full-time job. However, there are so many reasons why a more professional accountant is a big help to flourish a business. Mentioned below are the top five benefits of hiring an accountant for your business.
- Time can be saved:
- When starting a business, whether as a freelancer or a contractor, a consultant’s goal is to generate revenue.
- Doing paperwork and keeping track of what you’ve spent is time-consuming, leading to distraction from the task.
- Hiring an accountant who can be up to date on the latest rules, tax laws, deadlines and regulations, as well as can also understand the layout in which HMRC needs all the information, which can save endless hours of the user is searching on the HMRC’s website, which can give more time to user to concentrate on the productivity.
- Lessen your tax burden:
- A professional accountant knows saving money and can help you by giving good advice for your business.
- Based on circumstances, the accountant will advise the best way to conduct- either as a sole trader or as a limited company and the best tax appropriate methodology for taking out money from your firm.
- They will pay yourself through dividends, understand what you can and can’t claim through company expenses, and the benefits of using the flat rate VAT scheme.
- They’ll go over how to pay yourself in dividends, what can be and cannot be claimed as business costs, and the advantages of using the flat rate VAT scheme.
- Government offers a flat rate VAT scheme (FRS) which allows you to charge VAT on invoices at the regular rate (20% in 2014) while paying HMRC back at a reduced percentage.
- A good accountant will give you the best advice on whether the FRS will suit and financially benefit your business.
- Keep you from having to pay hefty tax penalties and fines:
- When it comes to finances and working for yourself, one of the most important things to remember is to stay on top of the paperwork and avoid late penalty fines. It is an essential element of their profession that they like to keep for some people. Others prefer to hire an accountant so they don’t have to worry about looming deadlines, are up to date on the latest regulations, and never miss tax deadlines.
- Keeping up with your tax filings, whether with or without the help of an accountant, will help keep your company bank balance in good shape by avoiding fines that can range from £150 for a day late submission of annual accounts to £1,500 fine for a six-month delay.
- Just the penalties you’ll face if you’re late with your annual accounts – this doesn’t include the fines if you are late or submit your forms incorrectly for your self-assessment tax return, VAT return and corporation tax. Your accountant will keep track of your deadlines.
- Assist you in expanding your business:
- To help you expand and build your business, a skilled accountant will be a valuable source of advice and wisdom.
- Clients are typically assigned their dedicated accountant, so you’ll be working with someone who knows the ins and outs of your business from the start and takes great satisfaction in seeing it flourish.
- Get rid of your tax concerns
- It’s no surprise that so many small business owners are concerned about their tax problems, given that even HMRC’s guide to costs is almost 100 pages lengthy.
- Remember to prepare your company year-end accounts, simplified company accounts where appropriate taxes like personal and corporation computations and returns, VAT calculation submissions, dealing with Companies House, and sorting your payroll are burdensome that can all be erased with the right accountant.
Accountants in East London:
- Limited Company accounts, Personal Tax Returns, Payroll, Bookkeeping, and much more are just some o the accountancy services we can give. To learn more, schedule a call with us.
- Clients value a dependable, trustworthy, and transparent service that includes everything you’d expect from a well-established accounting firm, as well as appropriate accounting software and dynamic apps that streamline their company needs, all while maintaining a committed and personal touch.