If you are one of those business owners who think that they don’t need a chartered accountant for their small business, it’s high time you debunk the myth. It takes time for a company to grow. The focus of every business owner is on keeping the costs to a minimum when starting up a business. This is exactly where you can take the aid of a chartered accountant. They have years of experience in the industry and know how to run a business with lean operations and build up a client base. Just one wrong financial decision when setting up a business can lead to grave consequences.
DIY Or Hire An Accountant?
Since the focus of every business owner is on saving money during the initial days of their business, they think that they can manage the minor accountant tasks themselves instead of hiring a professional. It is a myth which you should debunk if you don’t want to end up paying more taxes and fines. Even if you have a limited number of clients, it will become a challenge for you to manage the bills going out and invoices coming in with little knowledge in accounting.
You should know how to categorise bills and assign the right codes of transactions. Moreover, your time is very valuable when starting your own business and there’s no use wasting your time on minor accounting tasks. The best you can do is to utilise your time in doing tasks you excel in and let a chartered accountant manage your accounts. They also know how to make filing end of month accounts smoother.
Few More Reasons Why A Small Business Also Needs A Chartered Accountant
Advice On Legal Structure
A majority of the accountants in the UK have years of industry presence and know how to operate different types of businesses, irrespective of it being big or small. They understand that the legal structure of a limited company is completely different from that of a sole trader or LLP (limited liability partnership). The right professional will not only advise you on the legalities involved but also help you design a legal structure which will suit your business the best. To get a better understanding of your company’s structure and the tax system, they will ask you whether you have employed staff from the outset or operating out of your home.
Pay Importance To Your Finance
The importance of your finances during the initial days of running a business can never be ignored. Over time, the figures on your account will also increase. If you try running your accounts yourself instead of hiring chartered accountants in the UK, there is a high chance for you to miss a few invoices and they might become overdue. You might also make errors if you manually check the invoices. A chartered accountant will implement the right accountancy software so you can keep track of all the invoices. Some of them even have automatic reminder features so you can rest assured that you won’t fail to pay the bills.
Set Up Your Business The Right Way
Though every business owner feels that they know how to set up a business, only a chartered accountant know how to set up a business for growth. Work starts picking up over time and you need a professional who can help your business grow the right way. The more people you employ, you have to spend more time on the tax and PAYE implications. The accountant will enter every information about your new employee into the system so you know your tax obligation from the starting.
These being said, you now know why you need a chartered accountant even for your small business.