Do I need an accountant?
Lets face it, not many of us are good at delegating – especially when it’s going to cost us money. I know I’m very bad with this, but I am getting better and I now realise I can’t do everything myself! The big question is though – why hire an accountant when you can do the work yourself and file your own tax return???
Let’s look at it one way – time is money – why spend your time doing your accounts when you could be getting someone else to do it and spend your time earning more money? For example say you earn £20 an hour, and you use a cleaner who costs £10 per hour. It takes you 2 hours to do the cleaning – so when you do the cleaning, it costs you £40, however a cleaner will cost you £20. Therefore using the cleaner and working those two hours instead, actually saves you £20 – makes sense when you look at it that way!
You started your business to do what you’re good at. An accountant is good with the financial side of things and is in business to do accounts. A good accountant will save you money rather than cost you money, and will make life easier for you, giving you more time to do what you love.
An accountant may be a necessity for some businesses. If you do not have the relevant skills required to keep on top of your finances an accountant will be able to assist you. An accountant will know all of the necessary rules and requirements, and what needs to be done when – for example expenses you can claim, how to prepare your accounts, how and when to prepare payroll returns and file them with HMRC, how VAT works, and many many more. Knowing the right expenses to claim could save you the accountants fees alone!
If you are a limited company you will need to file your accounts with HMRC as well as with Companies House. HMRC require the accounts to be filed in a certain file format, and will have the software to do this. The software itself can be very costly.
You would also need an accountant if you were looking to buy a new house and obtain a mortgage, or to get a loan, to certify your (and your companies) earnings.
An accountant can do as little or as much as you would like them to do – from completing a review of your books, to preparing your tax return, to a fully managed bookkeeping and accountancy service. You can engage them for a one off task or keep them on an monthly/annual retainer for a range of services.
Maybe the question should really be – can you afford not to have an accountant?
If and when you do decide to work with and accoutant have a look at my blog on choosing the right accountant for you and your business.
For further information about how PPF can help you and your business pleasevisit our Work With Us page where you can complete a quick questionnaire and then book a discovery call with us.
