For some business owners, dealing with their own accounts is a standard – and even if it takes away some of their time from other endeavours, the process is not difficult. But others may find that dealing with their own financials and accounts is quite taxing, and if you feel that you are spending too much time trying to understand your financial affairs and handling tax returns, payrolls, and what-not, it may be time to find the right partner who can help you. The right partner would be an accountant, of course, but how do you really know when you need one? Here’s how to properly determine when you need an accountant for your small business.
What they are and what they can do
First, let’s delve into what an accountant really is. Accountants are individuals who are qualified and trained in financial analysis and bookkeeping. One of their standard duties is to prepare financial reports, coordinate tax returns, and aid in the budgeting and planning of an individual or business.
The extent of work your accountant can do for your business will depend on you. Some business people only meet with their accountant a single time every year, particularly during the filing of taxes, while others engage with their accountants on a regular basis, relying on their accountant as a kind of consultant as well. But even if you only meet with your accountant every year, they will still keep a close eye on your business’ books, and they can be of great help with your future financial planning.
When do you really need one?
- When you are not sure about your business and personal taxes
Taxes can be complex, and you have to deal with long forms and perhaps even fines for late submissions. It’s almost impossible to know the difference between the R40 and the IR35, for instance, not to mention remember the various codes that come with taxation as well. If you hire an accountant such as the accountants central London companies use, you can be assured that they will deal with all your taxes and make sure you can avoid fines for late payment. They can even help you save money in regard to the amount of tax you need to settle.
- When you don’t have enough time for other endeavours
If you are running a small business, this will take up a lot of time – even when you are out of the office, you may still be dealing with clients or updating your website. And amid all of this, you also have to make sure you have a good work-life balance and can spend time relaxing with your friends and family. But organising all your financial records and sorting through your taxes can certainly affect your time, so if you want to have enough personal time for yourself and time for your business, hiring an accountant would be your best option.
You may also need an accountant if you want guidance with financial planning and if you want to ensure that you stay legal, and even if you want to expand your business network. With an accountant’s help and expertise, managing your business and ensuring its success is made much easier.