Why Every Business in the UK Needs an Accountant
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The primary purpose of every business undertaking is to make a profit. The ideal way to easily know if your firm is making a profit or loss is to minus your expenses from returns. But considering the associated items, complexity, size, and time, it's never an easy task to conduct the typical "plus or minus" required.
This is a vital duty requiring the service of a good accountant to assist your company in determining whether you're running a profit, or loss, or just staying in survival mode.
A recent research survey revealed that about half a million UK companies started the year in 'significant financial distress.' It was also found that the services of an accountant are crucial to the survival of about 61 percent of businesses in the United Kingdom alone.
Given the direct relationship associated with the risk of running a business, and the benefits of hiring the services of an accountant, it's not surprising to note why every business in the UK needs one.
One of the reasons many companies in the UK, most especially the smaller ones, may choose not to employ an accountant's service is the fact that they believe their roles are limited to just bookkeeping alone. This has made many business owners not realise the tremendous benefits they are missing without an accountant's service.
In this article, we will discuss the roles of an accountant in a company and the benefits your business stands to gain from employing one.
What are the roles of an accountant?
Perform Tax Returns
Similar to the provision of Annual Accounts, a business-oriented company is also required to submit a tax return at the end of a business year. Accountants can quickly prepare this document, which includes profit/loss accounts, adjusted profits, and corporation tax measurements.
Estimate the Company's VAT
No business wishes to have issues with the company's VAT payments. Accountants have the expertise to determine your firm's VAT returns. They usually do this by choosing the right payment scheme without additional pay or penalties.
Start a new company
The vital role of an accountant goes beyond the period of actual business operations alone. Accountants can assist in determining the most beneficial business structure for an enterprise. They also assist in the registration of VAT and Corporation Tax with HMRC and perhaps Company House.
Financial reporting
Financial reporting tracks and analyses cash inflows and outflows to help identify current and future cash flow risks.
Accountants can help organisations ensure they have the sufficient cash flow to expand their business.
Payroll
Accountants play a crucial role in payroll management by bringing their expertise in accounting principles, tax laws, and regulations.
They maintain payroll files and create reports. They also ensure all payroll procedures are in line with government policies.
Tax efficiency
Accountants will ensure that your company is tax-compliant and help you save money by claiming what you can, improving cash flow, and implementing pension planning.
Business planning
They can provide invaluable general support by offering general business advice and discussing your ideas and future growth plans.
Above all, a good accountant provides you with the reliable financial information you need to make key decisions.
What are the benefits of having an accountant in a firm
Decrease business tax liability.
Accountants understand the intricacies associated with tax and business operations. Their services cover recommending the ideal tax efficiency of operating your firm. This includes dealing with HMRC on the company's behalf and exposing the flat rate VAT scheme's benefits.
Guide against Tax Penalties and Fines
An Accountant’s job is to ensure the firm abides by the tax laws. Their role is to ensure that they keep up with tax deadlines and other regulations, thereby avoiding the risk of tax penalties and fines on the business firm.
They assist in business growth.
Accountants' knowledge is vital in determining where the profit is mostly coming from and what is causing loss or unnecessary expenses. With the advice and keen eyes of accountants, they can help develop a business.
Eliminate tax-related issues.
Accountants' expertise helps solve the complexity of tax concerning the business owners and the business as an entity. Accountants form connections with HMRC and Company House to solve business tax-related requirements.
Accountants save business quality time.
Good accountants perform their functions excellently without delay. Thereby business owners can efficiently perform other necessary tasks for business growth.
How do I choose the best accountant services for my business?
As much as an accountant can help you free up some more time by handling taxes and making sure you are compliant as a business, it is important to do a check before engaging in their services.
Check reviews and testimonials
The best way to know the services offered by an organisation, is to check testimonials and reviews in their website and google my business respectively.
Customers who have experienced a company’s service, always give reviews of how they were served and if they were content and can use the service again. This is the best way to know if the accountant service will be able to offer the services you want for your company.
Ask about their range of services to make sure they can meet all your needs.
It’s also good practice to talk about qualifications and experience. Are they qualified through one of the recognised UK bodies? There are many professional bodies all of which require their members to have the necessary training and skills.
Accountants will offer different packages.
For example, you may want to pay an accountant monthly for their services. This means that they deal with all your finances. Alternatively, they may charge you by the hour.
You can choose the most suitable option depending on how heavily you want your accountant involved.
Background Checks
Verify credentials by running background checks to verify their credentials and ensure they have no disciplinary actions.
Relevant industry experience
Look for someone who has worked with businesses similar to yours. Industry-specific knowledge is valuable.
Icon Offices offers a range of accountancy services from VAT registrations to Annual Accounts. Get in touch with us at info@iconoffices.co.uk today!