Whether you’re starting your own venture or just looking to earn a bit of extra income on the side, having the right support on hand by your side is crucial, and as a small business owner, managing your own financial affairs can be a challenge.
If you’re considering getting a helping hand with your responsibilities, here’s why an accountant could benefit you.
Do you need an accountant if you’re self-employed?
Regardless if you’re a sole trader or you operate through your own limited company, you will have a number of obligations. As a sole trader there is generally less administration and statutory reporting however, you will still have obligations including:
- Submitting an annual Self-Assessment Tax Return detailing all of your annual income
- Paying income tax based on your taxable income
- Calculating and paying Class 2 and 4 National Insurance contributions based on your profits
- Recording your income and expenses
- Submitting quarterly VAT returns (if you are VAT registered)
Many business owners choose to operate through their own limited company, as this means limited liability – you protect your personal assets from the debts of the business and can take advantage of the tax efficiencies. However, this also means a greater level of reporting responsibility, such as confirmation statements, Corporation Tax returns and statutory accounts.
What does an accountant do for a small business?
There’s no obligation to hire an accountant, and many choose to simply manage their accounts themselves. This can be tempting, especially if you’re just starting out or you’re trying to keep costs down. However, you might be surprised about just some of the benefits an accountant can offer you.
If you’re thinking about getting a helping hand from an accounting professional, looking for a specialist who understands the needs of sole traders and small limited company directors is crucial.
Specialists like SJD Accountancy, have more than 20 years’ experience in supporting small businesses to effectively manage their finances. A specialist accountant will understand the unique challenges and demands, meaning that they can provide the support needed to help your business to grow.
Here are some of the benefits of using an accountant:
An accountant could help to save you money
Enlisting the help of a professional accountant could actually help you to save the pennies. By recommending ways to structure your finances, pay yourself and make use of any tax efficiencies you may not be aware of, their knowledge and expertise can provide valuable insight.
An accountant can save you time
For some small business owners, the very mention of finances or accounting is overwhelming, and the time spent preparing accounts, VAT returns and other reporting, eats into their working hours.
Appointing an expert accountant to help you with the statutory obligations of your business can free up a large amount of your time, giving you the time to concentrate on growing your business.
They can help to grow your small business
A specialist accountant who understands your business can provide more than just accountancy advice. Often, your accountant can act as a sounding board for your potential business ideas, provide impartial advice and help to forecast any financial risks whilst highlighting potential opportunities for growth.