Accountant for Small Business
There are many compelling reasons to hire an accountant at various phases of your company’s development. An accountant can help you with everything from a business plan to company creation, loan applications to tax audits. But do you need to hire an accountant for new business when you are just getting started?
Do I Really Need an Accountant for New Business?
You may believe, like many new business owners wanting to save money, that you can’t afford an accountant just yet. However, consider how long it would take you to complete some financial must dos (such as taxes) and consider whether this is a good use of your time.
Let’s imagine you take 10 hours to complete your taxes and your time is worth £100 per hour. Doing your taxes yourself will set you back £1000. There’s also the possibility that you’ve made mistakes – especially if you’re multitasking like most new business owners.
However, if you hire an accountant for new business to handle time-consuming duties like taxes, you’ll almost certainly pay less per hour than you would if you did it yourself. You’ll not only have more time to generate cash, but you’ll also have peace of mind knowing that a professional is handling the technicalities and that you won’t start your new business off on the wrong foot by falling afoul of HMRC.
So, when else might you want to hire an accountant for new business to assist you in the life of a new business owner?
When writing a business strategy, you'll need help
If you hire an accountant to help you write your company plan, they’ll be able to incorporate financial estimates and other data that you might not quite understand just yet. This will assist you in developing a realistic, professional, and more likely to succeed business strategy.
Hiring an accountant for new business at this stage will allow you to benefit from their financial expertise and advise straight away. When opposed to employing one later, this could save you time and money. And again (yes we’ll keep mentioning this but it’s that important) stay on the right side of HMRC.
Getting Your New Company Structure Right
Different sorts of enterprises have different legal structures, which are determined by a variety of circumstances. Some are known as limited liability partnerships, corporations, or limited liability partnerships, while others are known as sole traders or owners.
Before determining which type is best for you, you should think about each one thoroughly. You may, for example, work as a sole trader or sole proprietor, working for yourself and invoicing under your own name. If this is the case, you may be entitled to claim a tax deduction for some of your living expenditures.
However, this means that any business-related responsibilities may be held against you personally. If your company fails to pay a vendor, defaults on a debt, or loses a case, the creditor may be able to legally seize your home or other assets.
It’s not the same with an LLC. The liability of the business is restricted to the assets owned by the business, not you personally, as the name implies (though there may be exceptions in some circumstances).
An accountant for new business can explain the various legal business structures and assist you in selecting the one that best matches your needs.
Day to Day Accounting
If you try to do your own accounting for your new business, it can rapidly get very complicated. If you’re worried about who owes you money and how much they owe you, an accountant can help you get back on track. A new business needs every paid invoice it can get, and so this help can prove invaluable.
Delegate and Grow
One of the things you enjoy most as a new business owner is undoubtedly having control. You can choose your own working hours, develop your business plan, manage your workload (to some extent), and manage your finances. It’s a fantastic and freeing sensation to be the master of all of these things.
However, it can occasionally prevent you from delegating. Business owners can get overworked as a result of a reluctance to delegate tasks to others. You may believe that no one knows your business as well as you do, and that no one can handle any aspect of it as effectively as you can.
You may become overworked and stressed as a result of your inability to delegate. You’ll have to let go at some point and learn to delegate some aspects of your business to others so that you may focus on the rest.
It’s a smart idea to start by delegating your company’s financial concerns. Here’s an area that most new business owners don’t know a lot about anyway, so delegating this to an accountant for new business won’t make you feel like you are giving up too much control just yet. And it’s great practice for when you’ll need to do it a lot more down the road as your business grows.
Dealing with HMRC
Ah. Them again. Did you know that the UK has the largest tax code in the world? It’s also one of the most changeable, especially since the pandemic hit.
You may think that, as a new, small business, that HMRC would have far too many bigger fish to fry to worry too much about any mistakes you might make on your first business tax return, or whether you accidentally pay someone as a freelancer when they are really an employee. Or if you don’t quite get your VAT sums right when you first begin charging it. They will overlook a few rookie mistakes, right?
Unfortunately, the answer is no. Ignorance is no excuse under the law, or in taxes. Working with an accountant right from the start will ensure that you don’t make mistakes – or omissions – that the tax authorities punish you for.
All of this is just a small sampling of what an accountant for new business can do for you. As you grow, when you work with pearl Lemon Accountants you’ll be working with people who do accounting for businesses of all sizes, so they will be able to help you every step of the way as your business gets bigger and your finances get more complex.
Let’s Talk Accountancy.
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