19 Apr The most common reasons why small businesses need an accountant
Whether you’re deciding to start up a new company or you’ve been going a few years, it’s likely that there are countless times you have considered hiring an accountant to assist you in the multitude of complex legal issues that you could face. If you’re wondering when the right time for you to hire an accountant is, then see if you can spot any of the following issues in your business.
You’re about to make a large and significant purchase
Whether this means leasing or buying a new building or buying an expensive piece of machinery. If a purchase is making you take pause and consider the options then financial advice from an accountant could prove worthwhile. With plenty of advice making large transactions, they may be better equipped than yourself to seek out the answers to critical questions that could save you a lot of money down the line.
You don’t know what to register your business as
This would be relevant for those at the start of the business cycle and want to make the correct decision on which entity to register the business as. This seemingly simple task can be very complex as there are a number of different options. An accountant could likely save you lots of money both by making sure you have the right legal security, and also make use of any potential tax breaks or incentives.
Your business is being audited
If the government has made the decision to audit you then it’s more than likely that hiring an accountant is the safest and swiftest way of dealing with this process.
You’re struggling to differentiate different types of taxes
A common mistake small business owners make is not knowing which expenses should be claimed for business or as personal. You can actually save a lot of money if an accountant can clearly highlight which expenses are business related and thus tax deductible. Beyond this, keeping proper track of which taxes are applicable to your business and making sure you pay them is extremely serious and you could face major jail time and fines for breaking the law.
You’re writing your business plan
For many, writing an effective business plan doesn’t actually come at the start of the business cycle, and instead, if you are seeking to gain investment or expand into new markets then a business plan can help you clearly map out the path. An accountant will be able to help here by doing detailed projections and seeing whether or not the plan is financially viable.
You’re taking on more employees
The route of dealing with a large number of employees and effectively managing payroll and a PAYE system is a complex one, to say the least. If you are a small management team and would need to learn the in’s and out’s from scratch, then hiring an accountant could likely save you a lot of time and also help avoid the common pitfalls.
If you feel like you need help with any of the aforementioned points or have other issues that you think an accountant could help with, then get in touch today and see how we can help save you time and money.