When people first start out as self-employed they are often keen to make cost savings wherever possible. From hoovering your own office to designing your own website or logo, there are lots of things people decide to try and do themselves rather than pay a professional. One area where people think they can save money is by doing their own accounts and tax returns.
If you are really good with numbers, have an in-depth and up-to-date understanding of tax regulations and don’t mind doing the admin and form filling then this might be an option. Some individuals and small business owners do manage perfectly well without an accountant. Others however don’t and it certainly isn’t the right approach for everyone.
Before you decide that keeping on top of your accounts and business finances is something you will do yourself here are some things to consider:
• Will keeping track of your accounts actually take you away from doing other things which will help the business to succeed or grow? Would your time and expertise be better spent elsewhere in the business?
• Do you have the time?
• Will you dread doing your tax returns?
• Are you confident that by doing it yourself you will benefit from all the tax efficiencies which you are entitled to?
We often hear from individuals who thought they would do their own accounts but for whatever reason have failed to keep on top of things. Sometimes they have been busier than they anticipated or because it isn’t the sort of thing they enjoy they put it off. This can result in headaches and sleepless nights.
We always advise people to have an accountancy service in place from the beginning of any new venture. It is in the early stages of a business that there are many uncertainties to take into account. Setting up your own limited company can be a steep learning curve and having a good accountant can make all the difference in the early days. It can really take the pressure off.
It isn’t always as expensive as people think. At Exchequer Accountancy we offer packages starting from £59 per month plus VAT and that includes unlimited telephone and email support.
An important consideration is that a good accountant won’t just save you time, they can support with business advice, legislation, help get processes in place and will often save you money too. A good accountant will be able to ensure you are operating as tax efficiently as possible. They will stay on top of your accounts and keep you on track giving you a better understanding of how the business is performing financially which really helps with planning.
If you are still unsure about whether you really need an accountant we’d be happy to have a chat with you. Give us a call for a no obligation chat about how we could help.