5 signs that you need an accountant
Author: Russell SmithOctober 1, 2015
I’m often asked why and when should someone appoint an accountant. Here’s 5 signs that you need an accountant:
1. You’ve been on the phone to HMRC for more than 10 minutes
HMRC have been tasked with recovering more and more tax with the governments whilst their staff numbers have been slashed. The result of this is that phone waiting times for HMRC have gone to unbelievable levels. If you are someone who doesn’t like to be on hold, then you won’t enjoy the fact that you could be on the phone for 40 minutes+. Your accountant will be speaking to HMRC on your behalf in seconds.
2. You are worried about the various Companies House and tax deadlines
Whether you become self employed or a limited company, you will be faced with lots of deadlines. Deadlines that were not in your life before. There are also steep fines that are attached to these deadlines and we are not talking library fines. For example, if you are over 6 months late in submitting your personal tax return, you could be paying £1,200. An accountant will be able to tell you what these deadlines and make sure you don’t fall behind.
3. You don’t know how to much tax to pay and when
It’s easier when you are employed. You receive a payslip every month telling you how much you have been paid and how much you have been taxed. You don’t need to do anything, you just receive the money. This changes when you become self employed. You are now responsible for paying your tax and calculating how much tax to pay and when to pay it buy. Not only have you got to get this right but you have to save up enough money over a period of time to not be out of pocket when the taxman comes knocking. An accountant will be able to estimate how tax you have to pay and ensure you have enough when the time comes to pay it.
4. You are put off by all the financial and tax compliance jargon
Even the word ‘compliance’ is jargon. When you become a business you are faced with lots of financial jargon that can leave you slightly bewildered. Like anything, you do end up getting used to it but may not fully understand it. An accountant will get you quickly up to speed.
5. You are too busy to think about all this stuff
When you start your business there are 100s of things to do. Winning new business, delivering to your customers, finding people to do the work. You know that the tax and finances have to be dealt with but time is a premium and you can only do so many things in the day. Getting an accountant will enable you to delegate a time-consuming yet important part of your business. It will also help you to concentrate on your strengths so that you can grow your business.