As a small business owner, you have much more to deal with on a daily basis than the company finances. Keeping costs as low as possible will be a priority, with accounting appearing to be yet another expense. However, accountancy outsourcing can actually benefit your business, saving valuable resources while helping you to expand your operations.
Saving time
When you are running your own company, your priority will often be to generate new business, look after existing clients and fulfil contracts. This doesn’t leave much time for the business records, tax affairs or any of the other administrative duties that have to be completed. Failure to comply with legislation can see you hit with substantial penalty charges – worth up to 100 per cent of the tax owed, in some cases.
An accountant has the relevant knowledge of regulations and procedures, enabling you to remain compliant. A professional will also know how to submit forms to HMRC and which format they should be in. Dealing with these matters will save time that can be used to deal with other aspects of the company.
Avoid penalty charges
Outsourcing to an accountant will ensure that all forms and documents are submitted to the appropriate authority within the deadlines, helping you to avoid unnecessary penalties. The amounts charged can range from £100 for submission of a late tax return to £1,500 for submitting your tax return six months late. Avoiding penalties will ultimately boost your business’ bank balance.
Tax efficiency
A reputable accountant will help to minimise your tax bill in a legitimate and ethical manner. It may be beneficial to become a limited company rather than a sole trader, or you may want to apply for a different VAT scheme. An accountant has the relevant knowledge to know how different business structures work, understanding the pros and cons of each. There are many ways to legally reduce your tax bill and your accountant will know the best ways to operate your company, so that you effectively maximise profitability.
Worrying about tax affairs
Many people who are self-employed will worry about financial matters, including tax and future profits. Outsourcing to an established accounting company will help you to build a venture that is profitable, has a healthy cash flow and is constantly growing.
If you would like to see how we could help your company, contact us now for more information.