Do you need an accountant?
The question a lot of people ask is whether they need an accountant to do their book-keeping, accounts preparation and tax returns.
Well, think about your car and what you’d do if the brakes were faulty:-
(a) Would you repair them yourself by spending time doing the research, buying the tools and buying the parts needed, and take the risk you’d done it properly, or,
(b) Would you take it to a garage to have them fixed by someone qualified and experienced who could do it quicker, more efficiently, and give you peace of mind, or,
(c) Would you ignore it, continue to drive the car and eventually crash!
Book-keeping, accounting and tax return preparation is remarkably similar. It’s not rocket-science, everything you ever need to know is available on the internet if you’ve the time to research it all properly, are well organised, and have an aptitude for figures.
The risk is that “you don’t know what you don’t know” so you may think you’ve done it all properly, but you may well have missed a tax planning opportunity that may mean you pay more tax than you need to, don’t claim a tax repayment, or you may have missed a deadline or made a mistake in your return that means you get hit by a hefty fine!
Why take the risk?
Book-keeping is time consuming and is often a chore that business owners don’t want to do themselves. HMRC’s “Making Tax Digital” (MTD) is being introduced which requires book-keeping to be “digitised”, so shortly most businesses will have to keep records electronically using software, which is another thing for busy business owners to learn and set up. Most accountants will do book-keeping for their clients and where they do, there are usually savings to the year end accounts and tax return preparation fees.