What is an accountant?
Accountants are employed by organizations or private clients to audit accounts, provide financial advice and undertake accounts administration. Accountants go through rigorous recruitment and qualification processes, and this is reflected in their high professional status.
Accounting is a broad term that encompasses multiple different job titles and roles within organizations. There are three main types of accountants-public accountants, management accountants, and government accountants-all of which focus on different aspects of the profession.
An accounts daily duties would be:
- Ensuring the accuracy of financial documents, as well as their compliance with relevant laws and regulations
- Preparing and maintaining important financial reports
- Preparing tax returns and ensuring that taxes are paid properly on time
- Evaluating financial operations to recommend best practices, identify issues, and strategize solutions on cost reduction, revenue enhancement, and profit maximization
- Conducting forecasting and risk analysis assessments
What benefits do you get from having your own accountant?
- It can save you time
When you start working for yourself, be it as a contractor, a limited company owner, a freelancer, or a consultant. Your priority is to generate business and fulfill the work you have won. Having to do paperwork, keeping abreast of what you have spent and what is coming can be time-consuming and actually take time away from the task at hand.
- Reduce your tax liability
A good accountant will understand how to save you money and be able to give you good counsel on the most tax-efficient way of running your business
Knowing the best way to operate whether it is as self-employed or a limited company and the most tax-efficient way to take money out of your company is something they will guide you on, based on your individual circumstances and situation.
They will go through paying yourself through dividends, understanding what you can and can’t claim through company expenses, and the benefits of using the flat rate VAT scheme.
- General Business advice
Experienced accountants have dealt with all kinds of businesses, meaning they are often well placed to give general advice and help in growing your business, as well as dealing with the details of your finances.
When you are starting out, and even if you’ve been in business for years, it always helps to have other people to bounce ideas off and your accountant can give you objective feedback and valuable advice, beyond the financial advice you will get from them.
4. Avoiding penalties
Filling in forms incorrectly, missing deadlines, or failing to understand new legislation could lead to penalties that put an unwelcome dent in your profits.
Companies House and HMRC can range from £150 for a day late submission of annual accountants to an eye-watering £1,500 for a six-month delay
Your accountant will help you keep on top of deadlines, assist you with preparing your annual company accounts and corporation tax returns. They will also be able to assist with vat return and your self-assessment tax-return with regards to personal tax.