Taxation and overseeing accounts is an area of fast-paced change, uncertain outcomes, and complex judgments. It’s a challenging area for company directors that as a rule takes a lot of valuable time that could be spent on growing your firm. The assistance of an accountant or bookkeeping expert is a “helping hand” for almost 60% of businesses in the United Kingdom, however, does your firm has to use one? Though there is no formal obligation to apply to an accountant many advantages exist in doing so, for instance completing your yearly reports in due course and hassle-free manner.
How can an accountant be helpful?
Establishing a new company
Bookkeeping experts can assist with the registration of your firm with Company Registrar, facilitating the workload in the first days of your new undertaking. They can also provide advisory services on your new tax liability and register you for Corporation Tax, and payroll if you employ people.
Paying a company’s employees
In big companies, payroll usually is administrated inhouse, however, for smaller firms, it is better to transfer it to accountants that will take care of income tax calculations and HM Revenue Customs paperwork. Payroll specialists will ensure your company stays in line with mandatory regulations and laws, allowing you to focus on more interesting things than paperwork. Also, outsourcing can help you avoid significant expenses on costly software and training.
Your bookkeeping expert will offer you an assistance when navigating your company’s VAT obligations and choosing the correct payment method so that you don’t pay a higher price than is established. The services also include dealing with your quarterly VAT returns and controlling that you do not face any penalties.
Recording payment operations are part of accounting which may be another time-consuming, yet crucial task for companies. At the end of the fiscal year, no one wants to be catching missing papers. In this case, bookkeeping experts can handle your records with the best effectiveness, further making free your time.
Financial performance of the company
Every firm is obliged to complete yearly accounts with HM Revenue and Customs and UK Registrar of Companies on an annual basis. Non-compliance with this obligation will result in fines and sometimes such companies may be excluded from the register.
To avoid such problems, a bookkeeping expert will collect and prepare the needed paperwork and ensure it’s submitted in a due course. Subject to the scope of your firm, this will include a snapshot of a company’s financial condition, profit/loss account, and any other notes.
Together with sending your yearly accounts, your firm will get a notice from HM Revenue and Customs to send a tax return at each fiscal year’s end to declare your taxable profits. However, you must still send it even if your firm is below the threshold to pay taxes. The paperwork can be challenging, but your bookkeeping expert can calculate how much tax you need to pay.
Benefits of being serviced by an accountant
If you are still thinking about the advantages and disadvantages of hiring a bookkeeping expert for your firm, we recommend you calculate the hours you will save dealing with documents, as well as costs. An expert will make you confident that your funds and performance are in the right hands and that you will not have to learn a bunch of ever-changing rules and laws. Last but not least, you will recoup the costs you will save in likely tax efficiencies, avoiding penalties, purchasing specialty software, and training.