A lot of small business owners view accounting services as an unnecessary expense, and so they elect to handle this side of their business themselves. However, if you do this, you could end up costing your business a lot more money in the long run, as you could be running your accounts inefficiently, missing out on tax breaks, or even fined by the HMRC if you do not adhere to your tax responsibilities. Read on to discover some vital signs that now is the time to hire an accountant for your business.
You are struggling to find the time to dedicate to this side of your business
Accounting can be time-consuming, and if you don’t have the experience, software, and personnel, you may struggle to dedicate the necessary time to this part of your business. Once you miss your weekly bookkeeping commitments, it is easy for things to spiral out of control. Before you know it, accurate record keeping has gone out of the window, and you could be at a big risk of a fine if HMRC ever conducts an audit.
Revenue is increasing but profit isn’t
If your revenue levels are increasing, and you are selling more than you ever have but you aren’t seeing higher levels of profit, you should hire the services of an accountant, as they can investigate the issue to see where you are going wrong. Accountants today are becoming more like business consultants and strategists, helping you to digest financial data and make improvements.
An accountant can ensure you are handling your taxes efficiently. Dealing with taxes is not as straightforward as filling out a form. There are various VAT schemes to consider, as well as different tax breaks and rates for different businesses. An accountant will ensure you pay your taxes in the correct yet most efficient manner.
You don’t fully understand the government regulations that are applicable to your business
Finally, there is an alarming number of businesses in the United Kingdom that are not paying the right amount of tax because they are unaware of the rules and regulations that are in place. If you are not confident that you fully understand the legislation that applies to your business, you should hire an accountant who can take care of this for you.