Adding another bill to your list of outgoings might not seem the most prudent advice when looking to save money. However, hiring an accountant to help you to deal with your business and your tax affairs can actually help you to save hundreds or even thousands of pounds.
A good accountant will provide business and financial advice as well as helping you to maximise your tax efficiency. Keep reading to learn more.
52 Ways to Save Tax – Part 19 : Appoint an Accountant
Even though appointing an accountant might add another expenditure, many millions of people find that hiring a professional can help them to save both time and money.
One of the main benefits of hiring an accountant is that they can take a lot of the worry out of running your business. Your priority should be to grow your business and maximise your income and spending hours poring over your paperwork can detract from this. An accountant knows exactly what they are doing and can help you to manage your financial affairs while you get on with running your company.
A good accountant will also be able to provide you with business advice and help you to save money. They can advise you on the type of business structure to adopt – as a sole trader, partnership or limited company – and they can tell you what is the most tax efficient way to take cash from your company.
They can advise you on paying salaries and dividends and they will counsel you on the best way to register for Value Added Tax (VAT) if applicable.
Your accountant will also ensure that all the relevant tax deadlines are met. They can submit your personal tax return and company accounts, helping you to avoid fines and penalties.
Accountants can also help you to grow your business
As well as ensuring that you make your business as tax efficient as possible, a good accountant will also provide you with business advice.
When you appoint an accountant you will usually have a dedicated person that you speak to who. In time, this person will grow to know lots about you and your business and they can then help you to plan your expansion, grow your company and set up structures that are tax efficient.
They can also help you to set up a payroll for your staff and advise you on setting up a business bank account.
Accountants are often worth the investment
Even though you may end up paying your accountant anything from £150 to more than £1,000 – depending on the complexity of your business and accounts – you will often find that they offer superb value for money.
In many cases the tax savings you make will more than cover the cost of your accountant and they can also help you to avoid penalties and fines by doing things properly. The time they save you by looking after your paperwork for you can also be worth the cost in itself.