Should I Use an Accountant for My Company Accounts?
Let's face it, company accounts rarely fill the average business owner with excitement; running your own company or working as a freelancer gives you enough to do, without having to find time for the boring financial stuff too. However, while it's accepted that it's a necessary evil, have you ever considered all of the benefits of keeping good financial records?
When company accounts are a legal requirement
The act of maintaining proper company accounts isn't a legal requirement for everyone, but it's vital that you know when it is. Self-employed workers don't actually have to keep this kind of record, but if you're a limited company, it's the law - so you can't avoid it, even if you want to. The same rule applies if you're a partnership made up of any limited companies too - you must have official company accounts produced at the end of every financial year. find more info Oldham Accountants
Even though self-employed people don't need to keep official accounts, any professional accountant will tell you that it makes sense to do so. Ultimately, you still have to file a tax return every year, and it's so much easier to keep proper accounts, updated every month, than to face the end of the tax year with a huge box full of loose paperwork - sifting through a jumble of invoices and receipts could mean you spend literally days working out your tax liability. The easy solution if you can't face doing it yourself is to send your paperwork over to an accountant at the end of every month - this will give you an up-to-date record while saving you the stress of managing it all yourself; your accountant will also be able to file your tax return on your behalf.
Other benefits of keeping company accounts
Regardless of your legal position, even freelancers can reap the benefits of keeping proper accounts. If you work with an accountant, they will be able to use your financial records to offer relevant business advice, including growth strategies and expenditure reduction. Having this information to hand means that you can work together to improve your bottom line and find ways to reduce your tax liability.
Your accountant will also tell you that these official records can also help you with other non-work related issues. Self-employed people can sometimes find it hard to convince a bank to lend you money or give you a mortgage. By having company accounts to show them, you stand a much better chance of getting them on your side; in fact, some lenders insist on seeing 3 years worth of company accounts before they'll consider you for a loan or mortgage.
Company accounts can also help with budgeting, or even keep you on top of other impending liabilities, such as the need to register for VAT - and if you use an accountant, they may be able to get you on the flat rate scheme too. Basically, whether you legally need to or not, keeping company accounts is the best way to manage the money when it comes to your business.