The short answer is...maybe.
Many small business owners are happy to take everything on and limit expenses, especially in the early days.
However, it sometimes pays to flip this around and think of your small business in the same way as a multi-store, behemoth. Would you find the Marketing Manager of somewhere like Tesco messing around with a spreadsheet to calculate how much PAYE (Pay As You Earn) is owing for their staff? It's very unlikely.
Big businesses can grow quickly as they rely on professionals to help them run their day to day business. Everyone has their speciality and area of expertise, so don't be afraid to delegate to someone who's daily job it is to get figures right and keep you free from worry in relation to the big and scary HMRC.
Choosing an accountancy company can be tricky. There's independent, self employed accountants and there's big companies, with multiple accountants and tax advisors. Sometimes, the bigger accountancy firms are no more expensive than your local self employed adviser. They charge a fixed hourly rate and almost every accountancy company or individual will be able to give you a fixed fee cost for any particular work that you need doing.
From running payroll to doing your quarterly VAT return, it can all be outsourced to a 3rd party and they can scrutinise the figures and raise any concerns they have, before HMRC start asking questions.
If your business is very small, a micro business, it may be simple enough for you to manage on your own but you have to do some quick sums. For example, if it costs £1,200 per year for an accountancy company to file your annual returns and double check your tax liability, is it cheaper to let them get on with it and spend the rest of your time earning more than that £1,200 at your next trade show?
As a business owner, it can be difficult to hand over the reins of any part of your business but, just like Tesco, it can become mission critical if you're busy developing your next product or training a new staff member to use your tills.
The need for an accountant is even more pressing, when you consider that almost half of all SMEs submit incorrect information to HMRC, which can lead to problems later on. On average, it can take nearly 90 minutes to check your figures before submitting your data to HMRC through their online portal. Check out some more crazy stats by Clicking Here.
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- Tags: Business Essentials