All news » Reasons Why Hiring an Accountant Can Benefit Your Start-Up Business
Reasons Why Hiring an Accountant Can Benefit Your Start-Up Business
For many small businesses and start-ups, accountants are either perceived as a luxury, or as a mere tool meant to fill out those forms that keep HMRC happy. Nevertheless, good accountants will provide you with more than this. A good accountant can become a valuable ally, providing you with constant guidance and advice meant to help your new business survive and grow.
Available accountancy services for start-ups
Professional accountants put at your disposal a wide range of services that can highly benefit your start-up. Here are some of these services:
- Business incorporation: By discussing your aims, particular circumstances, and finances with your accountant, he/she will be able to recommend the most advisable and profitable structure that should be applied to your business (i.e. becoming a limited company, enter a partnership, or become a sole trader). Your accountant will also handle the incorporation services, making sure that all the submitted documentation is correct.
- Salary: If you decide to pay yourself a salary, you will have to register for PAYE. This means that your business will have to deduct the tax and NIC that must be paid on a monthly basis to HMRC. This is a potential minefield that should be handled by an accountant.
- Business taxes: An accountant will provide you with valuable guidance on what capital allowances or tax deductions you can claim. In addition, an accountant can offer advice on VAT registration, or corporation and personal tax returns.
- RTI: In an attempt to improve the PAYE system, monthly payroll information must be submitted to HMRC. An accountant can offer you expert advice on the RTI process, both for your employees and yourself.
- Company accounts: Every business is required to file end-of-year accounts with Companies House and HMRC. An accountant will make sure that they are completed on time and accurately, thus saving you from potential costly penalties.
The benefits of hiring a good accountant for a start-up business
Here is a brief overview of how an accountant can benefit your new business:
- Time saving: An accountant will free you from handling your own accounts, thus allowing you to focus on expanding your business and attract new customers.
- Objective raw data: An accountant will be able to provide you with unbiased input about your business and highlight those areas or issues that need to be addressed.
- Keeping costs under control: An accountant will keep your outgoings and overheads under control. This is an extremely important aspect during start-ups, as expenditure management is crucial for your business’ survival.
Help your business grow: An accountant can provide you with valuable strategic advice that can highly benefit the growth of your business.
Staying informed: Being aware of the latest legislation, an accountant will make sure that you remain tax compliant and operate within the rules.