If you’re a small business owner, you’re naturally going to be cautious about your cash flow. You’re certainly not going to want to spend any money unnecessarily. That’s why some small businesses still insist on handling their own finances rather than finding an accountant. However, this is counter-intuitive: accountants are well worth any money they cost. Here’s why:
They’ll save you time
Let’s face it, taxes are a pain in the backside. No-one likes paying them, and if you’re not used to it, filling in those forms and filling out those spreadsheets can take absolutely ages.
So don’t do it yourself. The simple fact is that you’ve got a business to run, and that business won’t run with the same level of efficiency if you have to spend hours each month working on your finances. Time is money, especially to a small business. A good accountant will save you that time.
A pro accountant will also do the work in much less time than you can, simply because they’re used to it. Even in pure hourly terms, an accountant is the cheaper option.
They know the legal loopholes
A good accountant should be able to help almost any decent-sized business save more on their tax bill than the fee they actually earn. A skilled accountant knows the ins and outs of HMRC, how they work, what you’re allowed to claim for and what you aren’t.
It’s a fact that many modern business owners don’t realise just how many legal ways there are to save money on their tax. Hire a good accountant, and they’ll start lowering your tax bill immediately. This extra money can then be re-invested right back into your business.
They’ll stop you making mistakes
It can be tough to stare at the mass of screens and spreadsheets on the HMRC website, thinking that you know what you’re doing but not being entirely sure. Unfortunately, it’s very easy to make mistakes if you’re not skilled in tax-management. You might make a miscalculation, or claim expenses on something that can’t be claimed.
The trouble with HMRC is that mistakes can have serious consequences. You might have to pay-back an additional few thousand you didn’t realise you owed; enough to mess up your cash flow for a good few months afterwards. In a worst case scenario, you could even end up in court.
A good accountant will take away this risk. You’ll be able to keep on running your business, safe in the knowledge that all your legal requirements are being taken care of by someone else.
An accountant can also help you plan for the future
Does anyone really enjoy the idea of planning for retirement? Or even planning for next year? Hire a good accountant and you’ll be able to take their advice on every matter, including pensions and future planning for both you and your employees. Remember, if you’re a limited company, it’s an obligation to contribute to a pension for your workforce. This can be a pretty complex process, and it can feel like a lot to manage alongside actually running a business.
But it’s just another thing that your accountant can take care of if you hire one. Again, this is a money saver. Pensions are complex enough that you could easily end up spending months of full-time work on them. Don’t bother, let someone else manage your future planning so that you can get back to making your company a success.
Get in touch
If you’re interested in discovering more about how a great accountancy firm can help your business – and you – save money, get in touch with us today. We’ll be happy to help.