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Do I need an accountant?

If you’re an owner-operator of a small or medium-sized business, one question you might have thought about is “why do I need to hire the services of an accountant?” Is hiring an accountant worth the cost and what qualities should you consider when choosing an accountant? We’re here to help answer your questions by providing eight ways that an accounting service can bring value to your company.

What exactly is an accountant’s job?

Working within the professional service industry, accountants are responsible for various functions. The diverse responsibilities of accountants are preparing tax returns as well as reviewing financial documents and conducting audits, analyzing the financial statements, forecasting, and analysing operations to find opportunities for efficiencies and savings just to mention some. However, that’s only one aspect of the equation. An accountant who is a great one can also add value in many different ways.

Have you ever asked yourself one of these questions:

Do I require an accountant?
Do I need to hire an accountant to run my small-sized business?
Do I require an accountant for sole traders?
Do I require an accountant for a small company?

If yes answers, the majority of instances is almost always an affirmative “yes” Your company could benefit from having an accountant.
What can an accountant do to help you?

The various definitions of what an accountant’s job is are incredibly limited and driven by process. Some accountants will adhere to a minimum standard but the top accountants can add immense worth to your business. These are only eight of the many advantages that come with hiring an accountant

1. Recognizing opportunities and threats

If you choose to hire the services of an accountant might claim to provide you with the best however, you must search for even the most basic of information. This is a recipe for frustration and you’re entitled to more. An accountant who is good will be active, always going the extra mile to comprehend the most important numbers to your business , and actively looking for new opportunities (as as threats) to help grow the success of your company.

2. Save you money

Effective accountants must be able to be able to pay for their own expenses. For a small or medium-sized firm, keeping taxes as minimal as you can is crucial for your business to prosper. A good accountant doesn’t simply take your money, they must save it! The top accountants are willing to provide the most effective strategies to reduce your tax burden and ensuring you are in the right line of the law and taxman.

3. Giving advice and assistance

Your accountant doesn’t just come in to help you crunch figures. They can also be an earful listening ear when you require it, drawing upon their extensive experience in the field to offer advice from an expert on different financial issues. From the creation of the company as a limited liability company to helping with the accounting software you use an accountant of high quality is always available to assist. In fact, you may even begin thinking about your accountant being a part to your staff.

4. Helping you comply with tax deadlines

The shifting taxation regulations and rules mean that even the most organized business owners may be caught out of meeting crucial deadlines without reason or fault of their own. An experienced accountant will help you stay informed of crucial deadlines for filing and help you avoid expensive penalties. By combining discipline, effective communication and solid systems Your accountant will make sure that your business doesn’t miss the tax deadline.

5. Helping with the business structure

The world of business is constantly changing and change, so the structure you used to run your business at the time you set up your first business could not work for your purposes as your business grows. If, for instance, you start out as a sole trader you could notice that as your staffing and contracts’ size increases the likelihood of taking on more risks and have more liabilities. In this instance your accountant will be able to guide you through the advantages of converting to an LLC and help you incorporate your business in a simple manner.

6. Time saving

The process of filing a tax return can take time. In reality, many financial processes require time even when accounting isn’t your primary job. A professional accountant can relieve you of the burden of performing crucial financial tasks, like doing your self-assessment. If you know how much your valuable time can be worth, think about the time and money that a professional accountant can help you save – in addition to the gray hairs! This will allow you more time to concentrate on the things you excel at.

7. Reducing risk

Two heads are generally more effective than one when it comes to making critical business decision. So, the advice of an experienced accountant can advise you on important financial decisions is invaluable. A good accountant will give truthful advice that safeguards your interests. They might also be able to make decisions for you in important situations, such as handling HMRC and investors.

8. Utilizing technologies

A good accountant will always provide solutions. There are many time-saving and cost-saving accountant software options to help you manage your finances more efficiently. Your accountant can guide you leverage these technology to gain the most benefit. They can help you install and integrate suitable software for digital accounting – like Xero, Quickbooks, Sage or FreeAgent to ensure that your accounting is efficient and efficient.

Conclusion

As you can see, a good accountant can do more than just prepare the tax return (as important as that may be!). We’ve highlighted eight advantages that come with hiring an accountant however, when you choose to employ an accountant, you’re guaranteed to receive many more benefits over and above the ones we’ve outlined in this complete guide on employing an accountant.

When you engage your accountants, they usually become a member of your team, providing invaluable insights, suggestions strategies, cloud-based tools and strategies to streamline your processes which can save you valuable time, money, and peace of mind. An experienced accountant must remain one step ahead and not the other way around! Every accountant is able to do just enough however, the most skilled accountants are deeply concerned about the success for their customers and will go to extreme efforts to make sure they succeed.