Should I Get An Accountant?

Does your business need an accountant?

A business lender will always appreciate business accounts being prepared by a qualified, independent accountant who is separate from the business.

HM Revenue & Customs (HMRC) expects the profits of a business to be calculated using accepted accountancy principles. If there is no one within your business with a knowledge of these solid accountancy principles, HMRC are more likely to challenge a tax return because it’s more likely to be incorrect.

HMRC can charge businesses penalties for filing their tax returns incorrectly, even when it’s a perfectly innocent mistake. HMRC expect businesses to take care when completing their tax return, so sadly ignorance is not bliss in this case.

Using a qualified accountant should give you accurate accounts, helping you reduce your tax bill and stay out of trouble with HMRC.

Why is important a business has an accountant?

To know how the business is doing financially

Your bank balance is not an effective way to monitor exactly who owes you money and what your owe. Keeping accurate financial accounts enables you to monitor this.

To raise money for the business, either via loan or overdraft

If you want to apply for a business loan from the bank, the bank will want evidence that you can afford to pay back the loan amount and interest. They want to invest in stable businesses that can keep a record of their accounts. One of the easiest ways to do this is to keep accurate financial accounts from the beginning of your business. The bank can also request cashflow forecasts and possible management accounts.

To apply for a mortgage

If you are a business owner and looking to apply for a mortgage, the bank will want to see evidence of your accounts. Similar to a bank loan, the bank will want evidence that you are trustworthy in the sense that you will be able to make the repayments.

To file a tax return

Sole traders and partnerships pay tax and national insurance on business profits. Accounts will show you the exact amount of profit, which is the first step to working out how much tax you should pay.

For filing your accounts with companies house

Limited companies and LLP’s file accounts with Companies House every year. Occasionally, the accounts for companies house and HMRC are for a different time period, so you need to align the accounts early or your business could be faced with paying different sets of accounts each year.

To sell the business

As you’ve likely kept your accounts over the years, your business has hopefully been a success and you might want to sell your business. Once you find a buyer, the purchaser’s accountant will likely want to see financial records for the past few years as evidence the business is worth the amount being asked for.

We can handle all of your Bookkeeping & Accountancy needs

What if your bank connected to your accounts software so payments could be matched regularly?

What if instead of keeping a folder full of receipts (or worse, keeping them in your pocket), you could take a picture of them with your phone and then forget about them?

With our help, getting you running Quickbooks or Xero in conjunction with Receiptbank this could be you.

Plus this means we can submit your VAT Returns, so it complies with HMRC Making Tax Digital

We can then support you by providing regular tailored reports, cash flow forecasts and even keep on top of your late paying customers-just imagine what your life could be like?

Some accountancy firms just deal with old excel and Sage accounts, but we know the importance of cloud accounting and want your business to shine.

What about the tax man?

We offer traditional Accountancy services too. As well as helping you grow your business, we can file your Corporation Tax Return, Self Assessment Tax Return and Annual Company Accounts.

We will work with you to make sure that you are not claiming for anything you shouldn’t claim, but that you are not over paying tax either.

Growing your business

You could even have regular meetings with us to discuss business performance.

  • Want to know what profit you are making?
  • Why is your profit not turning into cash in the bank?
  • What the business is worth?

Let us know your goals for your business and together we can help it grow.