When going self-employed, one of the biggest decisions you’re likely to make as a freelancer, contractor or small business owner, is whether or not to engage an accountant.
On the face of it, choosing to do your own accounting and bookkeeping seems like a simple decision, and an obvious way to reduce overheads. However, this isn’t always the case and, due to the evolving and complicated world of tax, hiring an accountant from the word go might prove to be your best bet. But why is this? What are the advantages of accountants? And how might working with a trusted accountant save you time, money and put your business on the path to success?
To save time (and stress)
Sorting expenses, day-to-day bookkeeping and calculating personal and company tax liabilities is time consuming. Like plenty of people working for themselves, you might find that your time is better spent earning money not organising money. It’s one of the reasons people engage accountants, who will look after your finances and take care of your tax responsibilities. In turn, this frees you up to focus on what you do best – providing a brilliant service to clients and customers.
To save money
While an online accountancy service will likely cost around £100 per month, it’s money well spent. By identifying ways you can reduce overheads and also ensuring you operate in the most tax-efficient manner, the amount an accountancy can save you often far outweighs the price of paying for these services.
To enable growth
Growth can mean a number of things in business – expanding into new markets, diversifying your services and employing people. An accountant will be in a position to run the numbers for you, making sure that any growth avenue you venture down is financially viable and profitable. Along with helping you make better informed and more strategic business decisions, you reduce risk with greater financial transparency.
To ensure tax compliance
Tax legislation is complex, with the consequences of operating non-compliantly often severe. For example, take the ambiguous and controversial IR35 rules – TV presenter Eamonn Holmes was recently found to have been guilty of non-compliance and was handed an eye-watering tax bill reported to be in the region of £250,000. A trusted accountant with a firm understanding of the tax landscape will be in a strong position to help make sure of your tax compliance, regardless of whether it’s IR35 status, Corporation Tax, VAT or your personal tax returns.
So there you have it. When focusing on the support your business needs, irrespective of whether you’re a freelancer, contractor or small enterprise, take a moment to consider the wide-ranging benefits of accountants – because engaging a trusted expert might turn out to be one of the shrewdest moves you ever make.
With over 20 years’ experience in supporting contractors, QAccounting is a leading accountant for contractors and small business owners. To learn more about our full service accountancy packages, which start at just £95 per month, please request a callback.
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The questions you’re likely to ask before engaging an accountant aren’t too dissimilar from the ones you might ponder over when buying any other product or service. For example, does it offer value for money? How well does it cater to my specific needs? Is it high quality? Is the company selling it trusted by others?