Running a business means making decisions about money, tax and the future of your business. An accountant can help you make those decisions with a clearer understanding of the numbers behind them.
For some businesses, working with an accountant begins with accounts and tax returns. But the right accountant can provide support throughout the year, helping you stay organised, meet your responsibilities and understand how your business is performing.
What does an accountant actually do?
An accountant can take care of many of the financial and tax responsibilities that come with running a business.
Depending on the type and size of your business, this could include preparing annual accounts and tax returns, managing payroll or helping you maintain accurate bookkeeping records.
They can also help you understand what expenses you can claim, plan for upcoming tax bills and make sure important deadlines are not overlooked.
For businesses affected by Making Tax Digital, an accountant can help make sure appropriate digital records and accounting systems are in place.
The aim is not simply to deal with the figures after the event. Good accounting support gives you useful financial information while there is still time to act on it.
Helping you understand your business
Your accounts tell you much more than how much tax you owe.
Keeping your records up to date can give you a clearer picture of how the business is performing and highlight areas that may need attention.
Your accountant can help you understand those figures and what they mean for the decisions you are making.
That might mean looking at whether the business can afford a new employee, discussing the financial implications of buying equipment or considering whether your current business structure is still appropriate.
Having someone who understands both your accounts and your business can make those conversations much more useful.
Could an accountant save me tax?
An accountant can make sure you understand the allowances and expenses available to you and that legitimate business costs are correctly included in your accounts.
They can also help you plan ahead.
Tax decisions made before the end of an accounting period can sometimes have very different consequences from decisions made afterwards. Having regular contact with your accountant gives you the opportunity to discuss those decisions before you make them.
The objective should always be to make sure you are paying the right amount of tax while making appropriate use of the reliefs and allowances available to you.
Do I need an accountant if I use accounting software?
Accounting software can make record keeping considerably easier, but software and accountancy advice perform different jobs.
Software records and organises the information you give it. An accountant can review that information, identify potential issues and explain what the figures mean for your business.
As digital accounting becomes a bigger part of running a business, having the right systems in place is increasingly important.
Your accountant can help you choose an appropriate setup and make sure you are using it effectively rather than leaving everything until the year end.
Do I have to use an accountant?
Many business owners are capable of managing some or all of their accounting themselves.
The better question may be whether doing everything yourself is the best use of your time and whether you are confident that you understand all your accounting and tax responsibilities.
As a business grows, its financial affairs can become more complicated. VAT, payroll, company accounts, tax planning and Making Tax Digital can all create additional responsibilities.
An accountant gives you someone to turn to when those questions arise.
How do I choose the right accountant?
Your accountant is likely to deal with some of the most important financial information in your business, so the relationship matters.
Look for someone who takes the time to understand how your business operates and explains things in a way that makes sense to you.
Ask what is included in their fees and whether you can contact them for advice during the year. It is also worth understanding how they prefer to work with clients and what information they will need from you.
Most importantly, you should feel comfortable asking questions.
You do not need to understand accountancy terminology before speaking to an accountant. Explaining the numbers clearly is part of their job.
Accountancy support from North Devon Accounts
At North Devon Accounts, we work with sole traders, limited companies and businesses across a wide range of sectors.
Our team can support you with your accounts and tax responsibilities while helping you understand what is happening within your business.
Whether you are starting a business, looking for a new accountant or need more support from your existing accounting arrangements, the first step can be a conversation.
We offer a free 30-minute consultation so you can talk to us about your business, ask questions and find out how North Devon Accounts could help.
Get in touch with North Devon Accounts to arrange your free 30-minute consultation.
