How can an accountant benefit my business?

How can an accountant benefit my business?

There are many reasons as to why a limited company contractor or sole trader would benefit from hiring an accountant.

Here are just a few examples of what a good accountant can do for you:

• Ensure you’re filling tax forms correctly and on time – while you can do your own accounts if you so wish, this is only recommended if you have a good understanding of UK tax laws. If you make a mistake there’s a chance HMRC could reject a tax form or even suspect foul play and investigate your finances. A good accountant can take care of all this, saving you the stress of doing it yourself.
• Help to save you time and money – an accountant can take care of your accounts, leaving you to spend more time on the running of your business. Their expert knowledge and advice can also help to minimise your tax bill each year.
• Support the growth of your business – an accountant can provide guidance using their own expertise and experience, which can help your business to grow and succeed further.

Accountancy fees are also an allowable business expense, helping to further reduce your tax bill at the end of each year.

Read our Limited Company Expenses Guide for more information on how business expenses work.

What to look for in a good accountant

To make sure you get the most out of your accountant, you need to choose one who is professional, reliable and trustworthy.

It can be a bit overwhelming when there are so many accountancy companies out there, all offering different packages and benefits, so you need to do your research and look around for the best fit for you.

Here’s what to look out for when choosing a good accountant:

• Specialising in contractor tax – there will be a number of taxes and legislations that will only apply to contractors, so your accountant must understand this area completely.
• Qualifications – while an accountant is not required by law to have official qualifications, it might give you more peace of mind knowing that they do have them.
• A fixed monthly amount with no hidden fees! – not every accountant works on a fixed monthly fee, so it’s worth finding out if yours does – otherwise, you could find yourself with a surprise bill at the end of the year. Check that their package includes everything you need, such as tax returns, VAT returns, payroll etc.
• Your own dedicated accountant – most people prefer to have just one point of contact; it means you’ll receive personalised advice instead of being passed around a team of people.
• A good reputation – whether it’s word of mouth or finding reviews online, it’s really important to do your research to find a reputable accountancy company.

Take a look at Our Services page to see everything that we can offer you as an award-winning accountancy company.

Is it easy to switch accountants?

Yes, if for whatever reason you find yourself wanting to switch your accountant, then it is a fairly easy process.

This is what you’ll need to do:

• Write to your accountant informing them of your decision to leave – we have a Notice of Termination Template page you can refer to.
• Register with a new accountant – you’ll usually need to fill out a registration form and your new accountant will have to (by law) carry out an anti-money laundering check on you.
• Letter of engagement – this is a written agreement that will come from your new accountant explaining the expectations and requirements between the both of you.
• Professional Clearance – this is where your new accountant will contact your previous accountant to gain access to your financial information, such as accounts and tax records.
• Authorise your new accountant to deal with HMRC on your behalf – to do this you’ll need to sign a 64-8 form.

If you need more advice, our Switching Accountants page provides further information on this.

Our team of experts are available to answer any queries you may have, so drop us a line on 01442 795 100, email jaime.thorpe@dolanaccountancy.com, or contact us via live chat.