If you are a self-employed sole trader or run your own small business, you’ve probably been tempted to try and do your own accounts. You may have even been told that it’s easy and anyone can do it or that hiring an accountant is a total waste of money. If you’ve got an online masters of accounting, go ahead. If not, spending money hiring an accountant could actually save you a fortune. Here’s how.
Mistakes Can Be Costly
While paying an accountant is an extra expense, it’s nowhere near as expensive as missing the deadline or making an error on your tax return. An accountant will make sure your returns are filed promptly and include all the correct numbers. This can save you money, time, and cut down on a lot of stress.
An Accountant Can Help You Pay Less Tax
A professional accountant knows how to help you pay as little tax as possible, without breaking the law. They know tiny details of information, which unless you take the time to study a masters accounting degree online (which would save you, even more, money in the long run!), you would never think of.
You’ll Deduct More Expenses
Without having an in-depth knowledge of accounting, finance, and tax, it’s hard to know what is and isn’t tax deductible. So, most people stick to the basics, stationery and the like, that they are 100% sure about.
An accountant will go through all of your expenses and make sure you are deducting everything you can, saving you money now and making sure you know what’s deductible in the future.
You’ll Pay the Right Amount of Tax
Filling in your return is the first part. Then, you must pay the tax you owe. Get this wrong and you could end up paying far too much, or paying too little and risking having to pay a penalty later. An accountant will make sure you pay exactly the right sum, every year.
They’ll Help You to Set up Good Practices for the Future
An accountant won’t just save you money this year. They’ll help you to implement financial planning strategies, filing systems, and put spreadsheets in place to make sure you save money for years to come. They’ll also teach you a lot about how to take your business forward while saving money and managing your accounts efficiently.
They’ll Help Plan for the Future
As well as preparing for the future and making sure you know what you are doing, an accountant will be able to offer you advice on how to take your business forward, equipping you with the knowledge that you need to make sound financial decisions for years to come.
While an account is an expense many new start-up businesses owners don’t think they can afford, what you should be asking yourself is: can you afford not to hire one? An accountant can save you time, money, and cut down on your stress levels, as well as help you with your plans and decisions. In short, they are well worth it.