What does an accountant do?

A lot of the time, we get asked “what does an accountant do?” and that is an interesting question; please don’t switch off now! Assuming you’re in business, you probably currently use an accountant and you’re not sure what they actually do? Or perhaps you do your own accounts and so don’t see any value in using an accountant? You might be thinking, “I don’t need that expense, I can do it myself”!

When people ask this, I say, “would you build an extension to your house to avoid paying a builder?” The answer is obviously no; unless you are a builder of course! So why risk processing something that you’re not trained in, potentially pay more in tax than you legally have to, and also add unnecessary additional worries to running your business?

So what DOES an accountant do?

 Good accountants do a number of things for you and your business. The following list covers off the important areas that a business owner needs:

• Firstly, a good accountant will ensure that all of the allowable expenses you can claim to legally reduce your tax liabilities are claimed. This one area can cover the costs of using a qualified accountant so all of the following benefits are effectively FREE.
• Most small businesses will not have the cash, or the need, for a full time internal accountant. Using the services of an accounting practice will mean you have a qualified business advisor available as and when you need their expertise. Ensure your accountant offers a fixed fee service to avoid the concern that every time you contact them their billing clock will start and you’ll receive an invoice for every phone call! Remember that there are also a few important things you should consider when choosing an accountant for your business.
• Accountants can forecast your future tax liabilities for you so you can make better financial plans. This will be safe in the knowledge there won’t be future “surprise” tax bills getting in the way.
• Tax planning advice ensures you pay the least tax you legally have to, with no worries that you will have the tax office challenging your tax returns.
• A good accountant will also offer Fee Insurance. In the rare instance HMRC decide to review your accounts, it shouldn’t cost you more to pay your accountant to deal with them. For a relatively low price, you can insure against yourself incurring these costs.
• Thinking of buying a van, company car, new asset etc? Give your accountant a call with the options available to you and make the decision that is best for you, without the nagging worry that you may have made the wrong decision if you had not taken advice.

What if I’m setting up a new business?

• If you’re looking to set up a new business, an accountant will be able to advise you on the best business structure that will suit your needs. In the UK the following structures are available;
  o Sole trader.
  o Limited company.
  o Partnership.
  o Limited Liability Partnership.

Can an accountant help me with documents and forms?

• There are many reports and returns that you as a business owner have to legally submit. Your accountant can help with a lot of these, most of which can be done online, including:
  o Self-assessment.
  o VAT returns.
  o Payroll RTI returns.
  o Corporation tax (CT600) returns.
  o Construction Industry CIS (CIS300) returns.
  o Auto-enrolment pension submissions.
  o Companies House Confirmation Statements and accounts.

There are many areas that need covering when running a business. These make utilising the services of a good accountant vital if you want to continue to thrive and grow.

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If you would like to make an appointment to see how we can help you, get in touch today! We’re contactable via our live chat function, over email at info@shmsgroup.com or give us a ring on 01489 584400.

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