Most people who run a business or who are self-employed will benefit from having an accountant. If you don’t use an accountant to help with your finances, tax obligations, and business in general, however, here are the top five reasons why you should.
1. Ensure You Pay the Right Amount of Tax
Tax law is complex whatever industry you work in. This makes it impossible for most people to find enough time to both run their business and stay up-to-date with tax rules and changes. This can result in you paying too little tax, which can get you into difficulties with the Revenue, or too much tax, which will leave you out of pocket.
An accountant will know how to optimise your tax payments so you pay what you owe but keep the rest.
2. Keep You Legal
An accountant can also help you stay legal. This includes ensuring you file your returns on time but it can also involve other parts of your business that are affected by laws and regulations.
3. Save You Time
This is a crucial factor, particularly for small and medium sized businesses. After all, your time is probably stretched without the added pressure of worrying about tax returns, VAT, or other accounting issues. An accountant can take control of those tasks to ensure they are completely accurately and on time. This will also give you more time to spend in your business – or however you want to spend it.
Many people or businesses who don’t have an accountant regard having one as a cost they don’t want to spend. If you instead look at the value of your time to the business and how much of that time is used on accounting related tasks, hiring an accountant usually becomes a cost-saving measure.
4. Help with Financial and Business Planning
Your accountant can help you plan your finances to help manage your cash flow and optimise your profits. In addition, an accountant can help you plan your business. For example, if you are considering expanding your business, moving to a new location, or downsizing the business. An accountant can also help if you are thinking of selling your business or you are thinking of buying one.
In fact, in most of these situations an accountant is essential. They will also bring significant value to your business, however, in day-to-day operations.
5. Get Advice
One thing that many people in business struggle to get is good quality impartial advice. The people you speak to who understand your business may be too close to it to give you a reasoned judgement, particularly if it is something you don’t want to hear. On the other hand, people who are willing to criticise or critique often do not have a sufficient understanding of your customers or business to give their analysis weight.
An accountant will deal with a wide range of businesses and will have experienced many different business scenarios. This is a wealth of knowledge that you can tap into to check your direction of travel, identify risks, and spot opportunities.
If you would like to talk to an accountant about your business, or you need any other accounting or business-related advice, please contact a member of the Gilroy Gannon team today.