As a small business owner, you might be wondering if you can save on the cost of hiring an accountant by managing the books yourself.
If you do choose this approach, be warned. DIY accounting could harm your business by leaving you vulnerable to financial mistakes and even hindering your company’s growth.
Here are just 5 reasons outsourcing your accounts is the smart thing to do.
1. It frees up your valuable time
Let’s face it, not everyone counts accountancy among their skill set. But even if you do have a head for figures, you’ve got better things to do than sit crunching numbers month in, month out. Getting bogged down in admin isn’t an option – you’ve got a business to run!
Whatever the nature of your work – from plumbers to Pilates instructors – your time and energy is best devoted to building your company. And when you’re off the clock, it’s time to enjoy some downtime, not pore over balance sheets.
Our top tip to avoid the dreaded business owner burnout? Get that work/life balance by leaving the accounting to the pros.
2. You won’t fall foul of the tax man
Filing an incorrect tax return is easily done. Unfortunately, though, errors can really blight your books and cause chaos within your business’s finances. Plus, if mistakes go uncorrected, there can be serious penalties to pay further down the road.
This is why doing your own accounts can be such a nerve-wracking experience.
Should you be using simplified expenses? How do you calculate gross profits? And what actually counts as a business expense?
Hiring an accountant means you won’t be in the dark about these FAQs. You can sit back and relax with the knowledge that they’re keeping your books in good order, meaning no stressful and costly mistakes come year end.
3. It’ll ensure you’re tax efficient
Nobody wants to pay more tax than they need to. Even if you’re used to filing accounts, you may still be missing out on tax benefits you’re entitled to.
Remember, HMRC doesn’t advertise the legal ‘loopholes’ your business can benefit from. Using an accountancy service can help you take advantage of tax allowances you otherwise wouldn’t have known about.
Take your allowable expenses. From staff dinners to the art on your office walls, you may be surprised by what you’re able to write off.
Even if they seem like small fry, added together these tax breaks could equal some significant savings for your business.
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4. They help with financial planning
Accountants are far more than just bean-counters. Did you know that an accounting service can help with financial strategy within your business?
It’s true! Rather than simply keeping your accounts ticking over and submitted on time, the right accountant can maximise your business’s structure and help you plan for future growth.
Although they don’t give investment advice (you’d need an FCA-registered adviser for that), accounting services can help manage your business’s current position, including asset allocation, writing business plans and risk management.
5. They can boost your bottom line
An accountancy service can help you track things like interest, late fees, unnecessary expenses, profit margins and that all-important cash flow.
Larger companies employ CFOs to take care of this stuff, but even a part-time CFO isn’t feasible for most small businesses. Online accounting services can partially replicate this role (minus the huge expense and HR hassle).
Ultimately, using an accounting service will boost profits in the long-term, which should make it a no-brainer for any business on its way up.
If you’d like to learn more about QAccounting or any of our accounting services, please don’t hesitate to contact our friendly team!
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