Do you need an Accountant for your Business?
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Published on: 20 November 2021
Last Updated on: 10 December 2024
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If you’re competent in dealing with finances, you might be able to handle your own accounts. However, if you don’t have the confidence or knowledge of accounting to handle this, you should definitely consider bringing an accountant on board. It’s of the utmost importance that your books are accurate as incorrect tax forms could land you in hot water with the law.
What is an Accountant?
An accountant is responsible for keeping and understanding monetary reports especially IR35 reports. There are many roles within the accountancy sector such as public accountants, management accountants, and government accountants. Each of these roles focuses on separate aspects of the profession as it is a very diverse sector.
What Can an Accountant do for your Business?
Most conveniently, hiring an accountant frees up your time as a business owner. This is because you can invest your time into other business matters rather than the bookkeeping side of things. In addition to bookkeeping, your accountant can take charge of filing your tax returns, executing financial reporting, compliance, payroll, tax efficiency, and business planning.
Furthermore, an accountant can save your business money in the long run by optimizing tax efficiency and enhancing cash flow. Similarly, they can advise you on business ventures and assist you in business growth. Ultimately, an accountant provides you with the financial foundations that you can use to build important decisions.
How do I Choose the Right Accountant?
As with any business relationship, chemistry is vitally important to the optimal running of interpersonal procedures. An accountant will be entrusted with all your finances so it’s important that you have faith in their ability and professional nature.
As well as this, you should evaluate their qualifications and how they wish to be paid. Some accountants will want a monthly figure, whereas others might charge an hourly wage. You should choose the best option for you depending on the level of involvement that you want your accountant to adhere to.
What Size Firm do I Need?
Like choosing the right accountant, selecting the size of the necessary firm will be dependent on your company’s individual needs. If you’re a micro company, sole trader, or contractor, a one-person band or small firm might suffice. However, if you have a large vision, you might want an accountancy firm to match. Larger firms are one of the good options for start-up company’s that are rapidly growing and expanding.
Is Location Important?
Once again, this depends on your company’s needs, as the vast majority of accountancy work can be carried out remotely. Despite this, you might want to facilitate regular face-to-face meetings so that you’re able to discuss the business in detail, which might ignite innovative ideas. So if you have business in the London region then you can hire accountants in London. If you think this would be beneficial to your business, you should select an accountant that is within travelling distance of your organization.
How Much Does an Accountant Cost?
Due to the wide range of accounting services and the variation of business sizes, there is no real set figure for the cost of an accountant. Typically, an accountant will cost anywhere between $30 and $300 per hour, depending on what you need them to do and the size of your business.
Conclusion
Ultimately, an accountant is a valuable asset to any business and if you don’t feel confident in handling the finances yourself, you should definitely bring one on board. As a rule of thumb, a business will not see much growth in the absence of an accountant so if you want your company to progress, you’ll need someone to handle the books and the tax return.
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