Keeping proper and accurate financial records is very important, but it is more important to do it the right way. Doing your accounts by yourself has its pros, however, it might not be the best option for you in the long run. You need your account books to give you a clear idea of how well your business is faring, inform your business decisions, and file tax returns at the right time.
It is has become common practice for owners of businesses particularly, small and medium-sized businesses, to do their account on their own as a cost-saving measure. While it saves costs, there is a high risk of mistakes that don’t match the cost-savings. Let’s see some ways that doing your accounts yourself could cost you money:
· Handling Accounts and Tax Returns:
Apart from monitoring your income and profit, a primary reason why you need accounting books is to determine your tax liability. As long as you have a business with income, you must pay tax in the UK. Expert accountants in the UK have received years of training and experience to ensure that your tax calculations and payment are accurate and timely. Only people with such training are qualified to do your books.
If you decide to your own accounts, you will still need a tax consultancy to assist you. Eventually, there is no cost savings since consultants cost the same as hiring an accounting firm with all their benefits. Moreover, hiring a consultancy doesn’t mean that your calculations will be foolproof.
Your accountants will examine your accounts and business thoroughly and file your taxes and tax returns accurately. Get in touch with the best accountants in your area at findukaccountant.co.uk.
· More Time for Business
As a business owner, you aim to grow your enterprise and maximize profit. However, when bookkeeping and accounting become part of your everyday schedule, your productivity is lowered, affecting how much time and energy you can spend on your business’s growth. Your multitasking abilities should be saved for profit-making and business expansion to prevent burnout. Instead of spending valuable time going over the books, hire a professional accounting firm to save you the stress.
· Fines and Penalties
Making mistakes while doing your accounts can prove more costly than hiring professional help. Any wrong input means your account books will contain incorrect expenses or inaccurate total revenues, both of which tax your taxable liability and income.
If this happens, you will most likely pay more tax than you owe or way less. Paying more tax than is required leave to you running at a loss, while paying less will get incur fines and penalties if you’re caught. Interestingly, overpaying tax is a common mistake that has driven many businesses to run at a loss. Other businesses have had their accounts seized on the grounds of tax evasion because of paying less tax than required.
You can avoid tax errors by hiring a reputable accounting firm to take care of your accounts and tax returns. Remove any possibility of making costly mistakes by hiring an accountant from the get-go. Our accountants at FindUKAccountant can review your books to ensure that you haven’t made any mistakes in the past if you’ve been doing it yourself.
· Fixing Your Mistakes Can Be Very Expensive
By now, you know that doing your accounts by yourself is rarely a good idea because you are prone to mistakes that can lead to losses and fines. After that, you still have to hire an accountant to fix your mistakes. Our advice is to avoid that risk entirely by hiring an insured accountant. In case of any errors that affect your business, you will be protected by their insurance policy. It is cost-effective, less time-consuming, and less stressful to work with an expert in the long run.
Also, hiring an accountant to fix your mistakes may cost more. You might have made scores of wrong entries out of the thousands of entries you entered. As you’ll agree, it will take more time and effort to go through each entry than to get it right from the onset.
· Tax Credits and Tax Reliefs
There are regular changes in government regulations regarding business taxes that you may not be privy to, as an entrepreneur. There are also certain tax credits and tax reliefs which can be beneficial to your business, that you are not aware of. Professional accountants are in the know about these tax credits and reliefs, as it is their terrain. Therefore, to take advantage of tax reliefs that specifically apply to you and your business, you need to hire an accountant. Don’t leave money on the table, besides, if accountants reduce your tax burden, they are already paying for themselves.
Other benefits of hiring an accountant
Now that you understand the dangers of going at your accounting books yourself, here are some other reasons why working with an accountant is beneficial:
- Unmatched business advice based on the current state of your accounts.
- No worries of learning complex tax terminologies or doing paperwork.
- Secure financing easily with well-kept and presentable accounting records.
- Avoid audits due to mistakes, being too charitable, or excessive write-offs.
- Plan for the future with an accountant that is an expert in your industry.
Get in Touch with The Best Accountants in the UK
At FindUKAccountant, we connect you to the UK’s best accountants to take care of all your bookkeeping needs. We work with licensed accountants, so you can rest assured that you are in safe hands. By connecting you with these qualified professionals, you save time and money while getting the best services.
All you need to do is fill our form online, telling us the requirements of your job. You will then be contacted by seasoned accountants around you, after which you choose the right person for the job. Start by visiting findukaccountant.co.uk and filling the form.
Disclaimer: We don’t take any responsibility for actions taken based on above information. Please speak to our consultants if you need more information. This guide was written specifically for FindUkAccountant clients. By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details are correct at time of writing.