You have to contend with a lot, even if you are self-employed. Not only do you have to handle your tax returns, but you also have to deal with profits and losses, invoicing, and more. It can be too much, especially as your opportunities get bigger and you have more to do. But fortunately, there is something you can do to help you with your finances, and this is to rely on an accountant. If you have just begun your business or have decided to become self-employed, an accountant may be just what you need to help you along. But do you really need one? Here’s how you can adequately determine if you need an accountant: your detailed guide.
What they are and what they do
First of all, it is good to find out exactly what they are – and, more importantly, what they do. Accountants are skilled and qualified professionals who have had ample training in bookkeeping and financial analysis. Their duties will involve preparing financial reports, settling and filing tax returns, and assisting with budgeting and planning for the future.
The amount of work and responsibilities your accountant will take charge of will depend on what you require. Some will only confer with their accountant when it’s time to do their taxes, whilst others want to engage as regularly as possible. But even if you consult with your accountant during tax time, they will still keep an eye on your financial books and records throughout the year.
How to determine if you need one
- If you are not sure about how to do your taxes
Taxes are a challenge. As confirmed by the central London accountants at GSM & Co, you have to fill out lengthy and complex forms and may even have to face hefty penalties for late submissions and errors, as confirmed by the central London accountants at GSM & Co. In fact, many people don’t much know about the difference between an IR35 from an R40, not to mention other terms and codes. However, your accountant can handle it if you are unsure how to do your taxes (and how to do it right). They will not only make sure you can avoid fines – they can make sure you save money in regards to the right amount of taxes to settle.
- If you don’t have enough time
A lot of us have enough difficulty trying to fit in 24 hours in a day – what more if you have to take care of your finances on top of that? If you are operating a full-time business, it will take up a big chunk of your time, and outside your usual hours of business, you may still have to do other tasks such as order stock, meet clients, or deal with your website. Additionally, you may also have to take care of your personal life, and establishing a proper work-life balance can be a definite impossibility. But if you have an accountant, you can save yourself time as they sort out your taxes and keep your books in order, amongst other essential duties.
- If you need help with planning your finances
Your accountant can also help you plan your finances, as they understand your financial situation more than most. Budgeting and planning are crucial for any entrepreneur, and your accountant can assist you with the proper decisions to help your business’ growth.