The essential part of running a small business
When you work for yourself, one thing you'll need to ensure you have accurate records of are your incomings and outgoings. You'll need to make sure that you have correctly submitted the figures to HMRC and so it pays to be clued up on cash management.
When you are self-employed, you pay tax differently to employed individuals. As a self-employed individual you pay tax based on your profits and you must declare your figures on a a self-assessment tax return. For many self-employed individuals, the thought of submitting a tax return is daunting in itself and this is where an accountant can be invaluable. An accountant can handle your bookkeeping and will ensure that they have filed your company and HMRC returns on time.
What are the benefits of hiring an accountant?
For businesses that earn less than £82,000 per annum in earnings, HMRC will allow you to use cash-based accounting. For this, you will need to provide HMRC with details of your actual income and expenses in the tax year. This type of accounting is best suited to sole traders and small businesses. Many individuals prefer to enable an accountant to take care of this, to help keep their bookkeeping is streamlined and all their earnings reported accurately.
Your accountant will ensure that you are claiming all the expenses that you are entitled to claim, which offers great peace of mind for you as you'll know you won't have missed anything.
Your accountant will be able to sort out your end of year tax return which is often the thing that causes the most stress and anxiety for many self employed individuals. It's likely to be your least favourite part of running a business!
Your accountant will be on hand to explain anything you don't understand when it comes to cash management and tax return forms, answering any questions you may have.
Many of these accountants will be highly experienced, will have a wealth of knowledge and will also use top of the range technology to assist them. The accountants themselves may have access to vast information from Tolley's Library Elements which provide members with reading material and publications on tax and accountancy.
When it comes to finding an accountant, you can often tailor the service so it meets exactly your requirements, for example, if you want to handle your tax return yourself, that can be left out of the package.
An accountant will certainly be an invaluable asset for you and your business and will take away much of the stress and worry you may have about whether you may accidently be paying too much or too little tax, may be filing the tax form incorrectly, or are not accurately keeping a record of your books.
What are the benefits of hiring an accountant?
For businesses that earn less than £82,000 per annum in earnings, HMRC will allow you to use cash-based accounting. For this, you will need to provide HMRC with details of your actual income and expenses in the tax year. This type of accounting is best suited to sole traders and small businesses. Many individuals prefer to enable an accountant to take care of this, to help keep their bookkeeping is streamlined and all their earnings reported accurately.
Your accountant will ensure that you are claiming all the expenses that you are entitled to claim, which offers great peace of mind for you as you'll know you won't have missed anything.
Your accountant will be able to sort out your end of year tax return which is often the thing that causes the most stress and anxiety for many self employed individuals. It's likely to be your least favourite part of running a business!
Your accountant will be on hand to explain anything you don't understand when it comes to cash management and tax return forms, answering any questions you may have.
Many of these accountants will be highly experienced, will have a wealth of knowledge and will also use top of the range technology to assist them. The accountants themselves may have access to vast information from Tolley's Library Elements which provide members with reading material and publications on tax and accountancy.
When it comes to finding an accountant, you can often tailor the service so it meets exactly your requirements, for example, if you want to handle your tax return yourself, that can be left out of the package.
An accountant will certainly be an invaluable asset for you and your business and will take away much of the stress and worry you may have about whether you may accidently be paying too much or too little tax, may be filing the tax form incorrectly, or are not accurately keeping a record of your books.
*Collaborative post
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