10 Reasons to Use an Accountant

Here is my list which I do believe are all very good reasons why you should use an accountant for all of your business accounting needs:

1. An experienced and qualified accountant knows what he/she is doing and understands the accounting framework, concepts and principles which are essential to preparing your annual business accounts.

2. An accountant will have a good knowledge of tax and will be best placed to advise you on what business expenses and tax allowances can be used to reduce your business tax bill.

3. This good tax knowledge can also be used to advise you on the most tax efficient way to pay yourself from your business whilst minimising your personal income tax and national insurance bill.

4. An accountant knows when returns are due to be made to Companies House and to HMRC and will notify you when tax or VAT payments are due. This will help you avoid paying fines to Companies House or HMRC.

5. An accountant will know what VAT payment schemes can be used by small businesses and can advise you on how these schemes can be used to your advantage and save you money. The " Flat Rate Scheme for Small Businesses " is a particular example of a VAT payment scheme that can save you money.

6. An accountant can take care of the administrative work for your business, such as maintaining a PAYE system and calculating income tax and national insurance due on monthly salaries and wages. This will free your time to focus on your key business activities, after all this is why you entered into business.

7. An accountant can ensure your financial records are reliable and free from errors or omissions, resulting in correct and accurate tax calculations and accurate year-end accounts.

8. An accountant can work with you and HMRC should you face a tax investigation. An accountant is always best placed to correspond with the tax inspector and explain the accounting treatment of transactions within your accounts and tax returns.

9. An accountant can advise you of the best way to structure your business, whether this is the sole trader model or setting you up as a limited company, and in the worst case scenario prevent you from losing your house in the event of business failure (insolvency).

10. An accountant can ensure that you keep proper accounting records and advise you on how long to keep these records for. This can will ensure that you avoid paying fines and penalties.