As a business owner with a small budget It can be challenging to figure out when you’ll need an accountant, and what to anticipate from them. In this article we look at the benefits of an accountant for your business’s small size and the assistance you should expect.
Benefits of having a small company accountant
Let the stress go
We recognize that business owners want to be able to spend the time they enjoy and not get caught up with the financials. It’s easy to feel like the paperwork is piling up while you’re trying to run your business. Therefore, whether it’s your most recent VAT deadline, the latest annual accounts, payroll or HMRC correspondence, we’re there to assist. Soon, we’ll have everything in order and that’s among the primary benefits of accounting for small-scale businesses that takes the burden from your shoulders.
Make time for yourself
Even those who are confident in managing their company’s finances, they should think about hiring the services of an accountant. For entrepreneurs who are busy it is not something they’d like to be doing accounting while they are working on their clients. If you take five hour to “do the math” every month, when your work is valued at PS100 per hour. it’s taking you PS500 in additional work you could be doing each month. That’s an incredible amount of money annually in revenue lost. Small business accountants typically bill significantly less than this, thereby saving the client money!
A committed expert
If you are an accountant, you are able to seek their help and help. There are many reasons consult with an accountant, from creating a business plan to planning cash flow forecasts, communicating with HMRC or simply because your business has expanded. We understand how crucial that you have an experienced accountant to call. Each of our clients has an individual Partner they can call for help anytime they require.
Proactive guidance
It’s not only about having an expert that you are able to call. An experienced accountant in York will be there with suggestions and ideas. Limits on taxation and bands vary each year, meaning that what worked last year might not be the best option today. Therefore, your accountant must make sure that your financial situation is current each year. For instance, every year we look at the most tax-efficient method to collect money from your small-scale business for each one of our clients.
Tax efficiency
Small-business accountants can assist ensure there is the correct amounts of taxes. As experienced tax accountants are aware of what expenses can be tax deductible and which ones aren’t. They also know how to maximize a company’s tax situation and the owners. In most cases, the tax benefits from working with a reputable accountant exceeds the cost they provide! However, an accountant can also ensure that you don’t violate any of the law, and risk an investigation into your tax situation by HMRC.
What help do you require from your accountant?
We’ve learned what the advantages of accounting for small businesses are, yet many business owners may be uncertain about the services they need. Let’s take a look at the wide range of services provided and what you may require.
The most important things
There are certain things that you shouldn’t leave without. They are usually the items you need to complete like the statutory year-end account, corporation tax returns as well as the VAT return (assuming your VAT registration is valid). Let’s look at these first:
Year-end tax returns for the statutory year
No matter if you’re a limited company or an LLP or LLP, you have to submit statutory accounts to Companies House each year. Our expert Accounts team can help you prepare the accounts for you. We can prepare accounts for small-sized businesses in many industries. We collaborate with clients using various accounting software such as Xero, QuickBooks and Sage. Statutory accounts have to be submitted to Companies House 9 months after the end of the year, which means for companies that ended their year on December 31, 2018, have until September 30, 2019.
Corporation tax return
In addition to your statutory accounts Every company is required to submit a tax return for corporations (CT600) in conjunction with HMRC. Our tax team of business accountants will ensure that you get all tax reliefs and allowances you’re entitled to , helping ensure that you are tax efficient. The CT600 is required to be submitted to HMRC twelve months following the year’s end. So, for a company that has a 31st December year-end in 2018 the deadline is 31st December 2019.
VAT returns
All VAT registered businesses must submit VAT returns to HMRC The returns generally are done on the basis of quarterly. Smaller businesses that are above the threshold for VAT, which is PS85,000, all VAT returns have to be submitted using MTD certified software. Small business owners often make themselves VAT tax returns however since VAT is the third largest revenue stream for HMRC, it is often scrutinized by HMRC. When business owners are not sure it is best to hire accounting professionals to look over and prepare your VAT tax returns. It is still your responsibility for your accounting (see below) but you can rest at night knowing that the VAT has been analyzed and checked.
The most desirable to haves
We now know the basics, which accounting services would you like to include for small businesses.
Payroll
If you have employees The majority of business owners inform us that they are not willing to take on to risk making the payroll incorrectly. There’s nothing worse than paying your employees wrongly, or calculating national insurance or tax incorrectly or not completing the RTI submission. We’re a licensed BACS bureau and are able to handle payments on behalf of you and provide you with pay slips and reports, assist with all tax returns required by law and offer technical assistance. Many find that eliminating the stress of paying your employees is a welcomed relief , and we’d love to assist.
Reports on bookkeeping and management
Bookkeepers manage the day-to-day bookkeeping, recording the purchase and sales invoices in a precise manner within an accounting program. We have an in-house team of bookkeepers who will develop an approach that is flexible to meet your needs.
Our bookkeeping staff can collaborate with your accounting software, or get you set up with cloud accounting. We generally find Xero to be one of the top cloud-based accounting software for small-sized firms. After a system is in place it, we offer Xero training. We also utilize Receipt Bank for many clients. Receipt Bank is a clever tool that integrates fully with Xero. It analyzes your purchase and purchase invoices to speed up the data entry process , bringing the numbers directly into Xero.
When the data is within your accounting software then we analyze them and provide management reports on the basis of a monthly basis. This information on management helps you track your progress compared to previous years and also your budget. It also assists in identifying issues early and to forecast profits and cash flow. As you get older the amount of information you have on your management becomes more vital.
Personal tax returns for individuals
Directors of companies typically submit a self-assessment tax returns with HMRC. A lot of people with basic tax issues have no trouble self-preparing tax returns. A good accountant will optimize your tax situation. This is really the culmination of all the work done above. If the correct payroll amount has been established, corporate tax charges reduced and dividends calculated in line with the relevant thresholds and rates, then your tax position for your particular situation should be effective. But that assumes your accountant has a complete understanding of your earnings each year. If you’re still doing your own personal tax return and you do not have a tax accountant, then you could, accidentally, miss out on some of the work described above. This could lead to tax leakage and you may be paying more taxes than you are required to!
In an overview
There are many advantages of working with a professional accountant who is able to get to know your small business, you and the goals you have set for yourself. When you’ve determined that it’s time to seek the assistance of an accountant, think about the kind of services you’ll need. I hope this guide has given you a better understanding of the various accounting services for small-sized businesses, from the basic to the luxury to should-haves.
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