If you are a freelancer or contractor or are running your own business, then you know how vital it is to keep your accounting records in check. Aside from this, you also have to be sure that your tax requirements are met, and it follows that you have to be well-versed and familiar with the latest laws and legislation in terms of taxes. but all of this involves a lot of effort, and it can already take up plenty of your time just making sure you keep accurate records of your financial transactions – more so if you have to deal with tax returns and compliance as well.
But this is where the expertise of an accountant can come in, and here are the top four advantages your business can get from an accountant.
1. Save You A Lot Of Time
This is the most obvious benefit, and it’s an invaluable benefit in itself. Your priority as a business owner, contractor, or freelancer is to generate as much income as you can and to make sure you fulfil the tasks you need to do for your business. But if you have to do accounting paperwork on top of all your other responsibilities, you will have precious time for little else. When you rely on an accountant who is updated with the latest rules and laws in taxes and deadlines and who is also familiar with the formats required by HMRC, you can save a lot of time not familiarising yourself with rules and legislation and focus more on what you need to do.
2. Decrease Your Liability On Taxes
A well-chosen accountant, like the accountants central London at https://www.gsmaccountants.co.uk , should also have a good understanding of how your business can save money as well as give you advice on tax efficiency. They will know how you can best operate, whether you are a self-employed person or are registered as a limited company. A good accountant can also ensure that you pay yourself appropriately with dividends, and they will understand what you should be able to claim (and what you can’t), in terms of company expenditures and the benefits of using schemes like the VAT flat rate.
3. Help You Avoid Incurring Hefty Fines And Penalties
The thing about managing finances as a business or self-employed individual is that you have to keep on top of your paperwork so you can also avoid incurring hefty fines and penalties. Some people may be more than happy to deal with this, but others would much rather rely on an accountant to remind them of deadlines and be familiar with the current legislation.
When you are updated with your tax submissions, you can certainly avoid fines that can range from as much as £150 per day for annual accounts to up to £1500 for a delay of submission going up to six months. But apart from annual accounts, you can also incur fines for the incorrect submission of forms for your tax return or corporation tax or VAT return.
4. Give Your Business A Better Chance At Growth
When you have an expert accountant, they can also be a highly-invaluable source of wisdom and advice for your business growth. For instance, an experienced CPA can tell you if an investment opportunity is worth looking into, and they can also advise you on the purchase of capital assets.