What can an accountant do for my business?

When we start out in business we all try and do as much as possible ourselves to save costs.  With lots of self-help books around and HMRC being a lot more human than they used to be it is easy to think that an accountant is one expense that we can do without.  After all, to quote a revered television presenter, “how hard can it be?”   In truth, getting the sums wrong can be the end not only of your business but of your home and potentially your liberty.  Saving by not having an accountant is no saving at all and in fact most good accountants will save you more than the cost of their fees in tax and business advice.  So what questions do you need to ask when considering appointing an accountant?

1. The golden rule when choosing an accountant is that there is no such thing as “one size fits all”.  You have to start by being clear on what type of business you have, what markets you are going to move in and what specialist needs you may have.  Start by asking yourself the following questions:
2. Am I trading as a sole trader, a partnership or via a Limited company?  Each of these trading styles will bring their own accounting challenges and you need an accountant who can deal with them.  In general most accountants can cope with all trading styles but a few are little more than book keepers and may only deal with the simple accounts of a sole trader.
3. Is my turnover likely to be more than £68,000?  If it is then you will have to register for VAT and you will need an accountant who is up to date with VAT regulations.  Even if your turnover is likely to be less than £68,000 it may pay you to register for VAT and your accountant will advise you on this.
4. Am I going to have employees?  If you are then your accountant can give you advice in calculating National Insurance (NI) and pay as you earn (PAYE) tax deductions.  Better still many accountants run a payroll service and will undertake all the calculations for you.  If you have employees on maternity leave your accountant can interpret for you the complexities of statutory maternity pay and what tax exemptions you may qualify for.
5. Am I going to trade overseas?  Your accountant will need to be able to advise you on the implications of VAT for overseas trade, cross-border agreements, how to manage your currency trades and how you reflect this in your tax return.
6. How large will my company grow?  There are different regulations for filing tax returns depending on the size of a company and whether it is stock exchange listed.  Your accountant needs to be able to advise you on and fulfil the regulatory requirements for your company.  Remember a large PLC is likely to have separate tax return accountants, VAT accountants and auditors (although they may be separate divisions of the one firm) whilst a simple one-man band may be able to get away with a bookkeeper.

Accountants will also advise you on such varied matters as stock control, how to calculate depreciation, whether it is better for your business to buy or lease or hire equipment, what insurances you should consider and on the financial implications of any contracts. And remember if you are involved in a specialist trade such as building or financial services there are a lot of extra financial regulations that you have to obey and you need an accountant who has experience of these.

If you would like help finding the right accountant for your business, please  visit wefinda @  http://www.wefinda.co.uk/local/accountant/ where you will find the rest of this business buyer guide which includes answers to the following questions:

What questions should I ask the accountant when we speak?
What will an accountant need from me?
Finally, what will an accountant cost?

Best wishes,

dave@wefinda.co.uk