5 Reasons why your business could benefit from having an accountant

If you’re a contractor, freelancer or small business, understanding the ins and outs of your company tax affairs is probably the last thing on your mind.

When you work for yourself every penny counts, from the money coming in, to the money going out. Keeping a check on it all is a job in itself, yet it’s easy to see an accountant as just another expense. But there are many good reasons why spending that little bit extra to get a good accountant can actually help grow your business.

1. It can save you time

When you start working for yourself, be it as a contractor, a limited company owner, a freelancer or consultant, your priority is to generate business and fulfill the work you have won.

Having to do the paperwork, keeping abreast of what you have spent and what is coming in can be time consuming and actually take time away from the task in hand.

Employing an accountant, who is au fait with the latest tax laws, rules and regulations and deadlines, not to mention one who completely understands what format SARS and Customs requires all the information, leaving you to use your time more efficiently.

2. 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.

3. Prevent you receiving hefty tax penalties and fines

One of the key things when it comes to finances and working for yourself is keeping on top of the paperwork and avoiding any late penalty fines. For some people this is part of the job that they are happy to keep up to date with. For others, having an accountant makes sense so they don’t need to worry about looming dates, be familiar with the latest legislation and ensures that they never miss a tax deadline.

Keeping abreast of your tax submissions will help keep your company bank balance healthier by avoiding fines.

4. Help you to grow your business

A good accountant will be a great source of advice and wisdom in helping you to grow and develop your business.

Typically clients are allocated their own dedicated accountant, so from day one you will work with an accountant who will understand the ins and outs of your business and take great pride in seeing your business succeed.

5. Remove your tax worries

Tax is complex. Even SARS guide to expenses is over 100 pages long, so it comes as no surprise that so many small business owners worry about their tax affairs.

Having to remember to: prepare your company year-end accounts, prepare abbreviated company accounts where appropriate, sort out your personal tax return, prepare corporation tax computations and Returns, VAT calculation submissions, liaise with SARS and Customs and sort your payroll is a burden that can all be avoided with the right accountant.

Your accountant will prepare everything you need, saving you money and bringing you peace of mind, while allowing you to get on with running your business.

Original Article: https://www.hiscox.co.uk/business-blog/5-reasons-business-benefit-accountant/