Getting out of the rat race and starting a life as a self-employed individual is an exciting milestone in a person’s life. But that person should also be prepared to take on the challenges and risks that come with such freedom or independence. Setting-up the operations for self-employed individuals would require registration with the local BPLO and HMRC or HM Revenue and Customs. This means that any company, sole-trader, co-operative, partnership, or limited company has to comply with the legal and tariff obligations set by these government bodies. One of the things that can help them face such challenges is the knowledge of efficient book-keeping. In the case of newly self-employed individuals, having the services of an accountant from business set-up to regular operations has plenty of added benefits.
Accountants can be employed or contracted to take care of book keeping functions which means that they are experts in ensuring that all financial records are kept in proper order. They are also good advisers when it comes to tax and auditing concerns. Being familiar with the ins and outs of maintaining financial records enables the accountant to help you comply with the tax provisions set by the HMRC without costing an arm and a leg. Having an accountant around for your business planning and set-up period is also advantageous as they can guide you in choosing the type of company to be registered with the HMRC. This will help ensure that your business will cope with the tax implications that go with the type of company that you registered. Aside from book-keeping and tax or auditing advice, accountants can also conduct regular financial reviews to help you monitor the cash flow and financial soundness of your business. This can be done on a quarterly or annual basis depending on your business requirements. You can also have professionally prepared financial statements that meet the standards of the HMRC and remove the risk of getting investigated for under or over estimating your year-end figures.
Other bonus roles that you can get from a good and reliable accountant include: a general business advisor, networking contact, and business source. An accountant with a wide-experience that spans from multiple industries can offer a wealth of information on business trends and opportunities that you can take advantage of. They are also likely to have contacts that can help you grow your business.
There are many reasons why one should get an accountant for their business. One can even say that they are essential in running a business. The importance of their functions is a clear indication that business owners should take extra care in choosing an accountant. The best ones are those with wide experience, strong ethics, good reputation, and strong academic qualifications.