You’ve heard about the benefits of hiring an accountant, such as expert financial advice and well-kept records, but you may be wondering when is the right time to pull the trigger and enlist their help.
You can employ an accountant at any time in your financial journey, but below we’ve collated some of the signs that you or your business may benefit from an accountant right now.
Interested in what exactly it is that an accountant does? Take a look at our guide here.
You’re self-employed
As a sole trader, you are juggling many responsibilities. An easy way to ease some of this pressure is to seek out the support of an accountant.
An accountant will help ensure that you are complying with all tax regulations, which can be tricky to understand as a self-employed contractor, whether you’re new to your business or not. Further, their bookkeeping services will assist you in keeping clear and accurate records, which are vital to understanding when you will reach a sustainable turnover and when your business can expand.
By employing an accountant to help you, you can devote more time and energy into the aspects of running your own business that you enjoy, while remaining confident that your finances are running smoothly.
You’re going to be audited
The auditing process is carried out by an independent body, and is done to verify the accuracy and compliance of your company accounts. This is typically done once a year, though some companies are exempt from the process.
It is best practice to hire an accountant well before your scheduled audit. An accountant will prepare all of your necessary records and documents and ensure their compliance with tax regulations in order to minimise the risk of any complications during the audit process.
The end of the financial year is coming up
End of year accounting is a huge element of running a successful business or being a successful self-employed contractor. Curating accurate year-end accounts will allow you to identify any discrepancies in your business and give you the information and tools needed to make better financial decisions over the next year.
However, because of their importance, many people dread year-end accounts because they require a great level of detail and organisation. This is why it is best to employ an accountancy firm to assist in preparing your accounts.
An accountant will be able to reconcile your accounts, report on income and expenses, curate a balance sheet, and analyse your cash flow. They will also be in charge of the vital task of filing your taxes, saving you the time and stress of managing your own tax return.
You need to deal with government regulations
Dealing with government rules and regulations when running a business can be stressful, which is why many business owners turn to accountants to help manage this aspect of their finances.
Accountants are experts in all things HMRC, and so they are always up-to-date with any changes to the tax system or other rules business owners need to be aware of. By placing an accountant in charge of your tax responsibilities, you can relax knowing your business is acting lawfully.
Moreover, thanks to their expertise, accountants are able to identify tax relief opportunities where you may be missing a chance to save some money.
Your company is looking to expand
If you are considering growing your small business or taking your self-employment to the next level, this is an excellent time to hire an accountant, as you can capitalise on their financial expertise to help build a comprehensive and achievable business plan.
Rather than waiting to seek financial advice at a later stage in your growth planning, we highly recommend reaching out to an accountancy firm right at the beginning of the process. This way, your entire development strategy will be rooted in expert financial advice and you can rest assured that your goals are feasible.
Conclusion
If any of the above signs fit your situation, we recommend you enlist the services of an accountant. At Archimedia Accounts, we are a family-run team of expert accountants who will be happy to help with any of your financial needs, from bookkeeping to year-end accounts.
Get in contact and our friendly team will schedule a free consultation for you to discuss all of your accounting needs.
FAQs
Is it a legal requirement to have an accountant?
No, in the UK you are not legally required to have an accountant whether you run a small business or you are self-employed. While you are legally allowed to keep your own financial records and file your taxes yourself, it is highly recommended that you employ the services of an accountant to ensure that you are keeping accurate accounts and meeting all of your legal requirements.
How do I know if I need an accountant?
If you find yourself stressed about submitting your annual self-assessment return, or questioning whether you’re maximising tax relief in your business, chances are that you’d benefit from speaking with an accountant. More generally, if you’re self-employed or a business owner who wants to ensure that your accounts are in order and that you’re operating within the relevant UK tax laws and regulations, you should speak to an accountant.
Do you legally need an accountant?
No, it is not a legal requirement for you to have an accountant. Having said that, there are certainly legal requirements and regulations that business owners and self-employed individuals need to meet, which an accountant can help ensure that you do.
