Do I Need An Accountant?

When starting a business or cutting costs you’ll probably ask yourself: do I need an accountant? We’ll explain some of the benefits of an accountant and why you might need one.

do i need an accountant

Do I need accounts?

Accounts show the financial performance over a year in a Profit and Loss Account. They also show the financial position of the business at the end of that year in a Balance Sheet. Accounts usually include other information such as notes to show the detail behind some amounts. Companies House and HMRC require accounts from every company every year. For sole traders and partnerships, HMRC may also request supporting documents for tax return, which accounts provide. Lenders such as mortgage companies also normally request to see accounts. Accounts are usually needed if you want to sell the business or attract investors. So yes, you normally do need accounts.

Some online accounting software provide reports that look like accounts. However, if you don’t use an accountant, how do you know that you’ve recorded all of your transactions correctly? That your bank account reconciles with bank statements? Whether the accounts comply with accounting and tax regulations? So do I need an accountant for accurate accounts? Yes, you usually do.

All of our accounts packages include annual accounts. Our quarterly package also includes quarterly management accounts and VAT returns. The monthly package gives you monthly management accounts and bookkeeping. Our Prices.

Do I need an accountant for a tax return?

All companies need to submit a corporation tax return to HMRC. All partners and sole traders have to submit a personal tax return to HMRC. Most directors and shareholders of companies also need to submit a personal tax return. So if you are in business, whether that’s through a company or not, you’ll almost certainly need a tax return.

An accountant, not only prepares and submits a tax return accurately for you, they can also save you tax. For example, do you know which allowances you can claim? How to use any losses to get a tax refund?

All of our accounts packages include a personal tax return and a corporation tax return (for companies).

Do I need an accountant for references?

If you are in business and you require a loan, a mortgage, or a tenancy agreement, you’ll usually be asked for an accountant’s reference. This provides information on how much money you earn so a decision can be made by your lender/landlord.

We don’t charge our clients for accountant’s references.

Do I need advice?

There are many important questions to consider when running a business and complying with various laws, accounting and tax regulations. Many of these appear from early on in a business’s lifetime. Such as whether it’s best to trade as a sole trader or limited company. Should your spouse be a shareholder or partner or employee? How much money should you take from the business and how? Do you know which taxes you need to register for and when? Which accounting software is best for your business, such as the best – Xero, or the free – Pandle? What do you need to do before the year end to save tax?

All of our clients receive tax-saving advice before every year end. All of our accounts packages include at least 1 hour of accounting and tax advice throughout each year. Our Prices.

Do I need software provided by an accountant?

No, you don’t. We recommend using software but you shouldn’t have to use the one your accountant prefers. It may even be unsuitable for your business. The smallest businesses could simply use a free spreadsheet to list and categorise all transactions. Free online accounting software such as Pandle may be suitable for small business that don’t have too many transactions. Contractors may prefer the simplicity of FreeAgent. Businesses with lots of transactions may be better suited to QuickBooks, or Xero.

Our clients can choose whichever software they prefer to do their own bookkeeping, or for us to do their bookkeeping for them. So you are in complete control of your accounts and costs. We can also get you a discount from some software such as 15% off of Xero, and 50% off of Pandle Pro.

Do I need other services from an accountant?

Accountants also provide other services, such as payroll, pension, VAT returns, bookkeeping, and finance director services. Many of these roles you could try to do yourself, especially with good accounting software and advice (see above). However, there are still technical aspects of each which could lead to errors. They are also quite time consuming especially if you’re not used to doing them. Using an accountant not only prevents errors, but frees up your time to concentrate on your business or leisure time.

Our clients can can add or remove extra services like these at any time, with our flexible accounts packages. So you can be in control of your time and costs throughout the year.

Do I need an accountant?

If you are in business, want to avoid costly mistakes with your accounts and taxes, want to pay less tax, want to have more time for business/leisure, then yes, you need an accountant. From just £20pcm you can have all of that and more with CloudBook Online Accountants.