When you make the decision to start a small business, you will probably have a host of questions. You will also be trying to keep expenses as low as possible, and outsourcing to an accountant may seem like an extra cost. However, an accountant that specialises in small businesses will be able to answer all your questions, providing advice that could make the difference between success and failure in your first year.
1 – Starting your company
An accountant will help you to decide which business structure will be most beneficial for you. The types of structure are usually sole trader, limited company or partnership. Each of these has benefits and also some disadvantages, so advice will be necessary.
You will need to inform HMRC of your new enterprise and, depending on your business type, there may be other requirements. Companies House will also need to be informed if you set up a limited company. You will have legal requirements to fulfil for each business structure, and you will need to know what the filing deadlines are for each document that you are required to submit. Failure to comply with HMRC or Companies House will result in penalties being issued. You may also need assistance if you have employees or you exceed the threshold for VAT, and there are regulations that need to be adhered to.
2 – Taxes
Finances will be a priority for your business and an accountant will minimise your tax bill in a legitimate manner. Expenses, allowances and tax relief can all be confusing, but knowing exactly what you are eligible to claim for could save you lots of money at the tax year end. Typically, an accountant will conduct tax planning at the start of the tax year, so that you minimise your bill.
3 – Tax returns and accounts
Every year, you will be required to complete and submit a tax return. You will also have to keep accurate business records and accounts. Trying to run a company in addition to dealing with business records, completion of forms and preparation of accounts is time consuming and complex. Outsourcing will leave you free to deal with other aspects of the business, while knowing that your company is safe in the care of a professional.
4 – Saving money
Outsourcing to an accountant will save you money in the long term. You will be informed of which expenses and reliefs you can claim, along with all filing being dealt with in a timely manner. This will save money throughout the year, and the cost of the accountant will soon be recouped.