What can an accountant do for your business?

If you’re running your own business, you might wonder, “what does an accountant do for you?” Understanding the roles of an accountant and why are accountants important can help you decide whether it’s worth investing in one.

Understanding the Roles of an Accountant

When considering what does an accountant do for you, it’s essential to recognize their multifaceted roles. From ensuring compliance with tax regulations to providing strategic financial advice, accountants are integral to business success. Their expertise not only aids in daily financial management but also in long-term planning and growth.

What can an accountant do for my business?

An accountant can make two main contributions to your business. On one hand, they will help you comply with your statutory obligations, and complete important processes like tax returns correctly. On the other hand, an accountant will compile important financial data and provide strategic business advice to help with planning and decision-making. Accountants can also be a big help if you are setting up a business or, alternatively, when big changes happen within the structure of your organization.

READ RELATED ARTICLE: How a small business accountant can help grow your business

Do you really need an accountant?

No matter the size of your business, hiring an accountant means that essential but time-consuming tasks like tax returns and VAT returns, are taken off your shoulders, providing you with more time to focus on your business. It will also provide you with peace of mind, as rules and obligations around these tasks can be complicated, and mistakes often result in penalties. Let’s have a closer look at what an accountant can do for you.

Sole traders

If you’re a sole trader earning less than £85,000 per year (not VAT-registered), your duties include accurate record-keeping, self-assessment tax returns, and income tax payments. Understanding what does an accountant do for you can clarify how they assist in these tasks.
An accountant can help you navigate these responsibilities, ensuring that your records are accurate and that you are paying the right amount of tax. This will give you more time to focus on your core responsibilities.

When it comes to crunching numbers, an accountant can also help you automate your finances, helping you keep track of cash flows, invoices, and KPIs, and providing you with valuable data so you can make the right business decisions.

ARB Accountants offer a range of transparent, fixed-fee services tailored to freelancers and contractors. You can book a 60-minute free consultation today to enquire about our services.

READ RELATED ARTICLE: Business structures for freelancers and contractors in the UK

Limited companies

Limited companies face more complex compliance requirements, including annual confirmation statements, VAT registration (if turnover > £85,000), quarterly returns, payroll, and pensions. Engaging an accountant for limited company UK can streamline these processes. If you are turning over £85,000 per year in revenue, you are also legally required to register for VAT. Other responsibilities of limited companies include quarterly returns, payroll, and pension auto-enrolment.

These processes are often complex and time-consuming, and mistakes can lead to costly penalties. Most businesses will need the help of a professional to effectively perform these obligations. An accountant will ensure that the right forms are completed correctly and on tim

Additionally, your accountant can create financial reports, provide tax advice, and help you build a solid business strategy, to help you maximize your profits and make the right business decisions.

If you are registered for VAT you may be subjected to routine tax audits from HM Revenue & Customs (HMRC). Audits can be complex and often costly processes, and you should seek professional advice as soon as you are informed of an audit, to help you navigate through the process.

Personal

If you have multiple income sources (e.g., rental properties), an accountant helps manage tax efficiency and compliance with evolving regulations. This underscores what does an accountant do for you in personal finance contexts.

5 Main Advantages of Working With an Accountant

1. Tax Services

An accountant will help you stay compliant with the latest HMRC tax regulations as well as ensuring that you are tax-effective and do not pay any more tax than what you are required to.

2. Bookkeeping and Financial Reporting

All businesses are required to file quarterly reports, but an accountant can help you create and manage data beyond your statutory obligations. They can set you up with the latest cloud accounting software so you can keep track of your spending and income.

3. Improving Cash Flow

Running a successful business does not only require making a profit, but having the right amounts of cash available at the right times. An accountant can help you manage your cash flow and come up with a spending plan and manage whatever situation your business comes across.

4. Valuable Business Advice

Experience accountants carry a wealth of knowledge and can offer valuable insight and advice as your business develops. They can use their understanding of data and financial projections to inform the direction of your business.

5. Freeing up your time

An accountant will not only provide an expert hand to deal with all the financial needs of your business but will also reduce the amount of time you spend on the administrative side of your business, allowing you more time to focus on your expertise.

Have a look at our Service page to learn about the kind of services that ARB Accountants can offer.

Do I Need an Accountant for My Business?

Many business owners ask, “do I need an accountant for my business?” The answer often depends on the complexity of your financial activities. However, understanding what does an accountant do for you can highlight their value in ensuring compliance, optimizing tax strategies, and providing financial insights.

I spent a good week or two researching accountants around Southend and out of everyone I spoke to, Saurabh was able to answer all my questions and easily established a warm level of trust from the get-go. When it comes to handling finances, not only should there be quality and efficiency but there should also be trust and security. Quick and accommodating, with a wide breadth of knowledge, ARB provided all of the above for me. Definitely the best choice I made when it comes to the overwhelming task of taxes/accounting. Highly recommend!

Anne Walters

How to hire an accountant

Deciding on the right accountant or accountancy firm for you depends on the needs of your business. Some organizations, like insurance firms and registered charities, will need to work with specialised accountants. However, most small and medium-sized businesses require services that most accountants can deliver. If this is the case for your business, you’ll want to get in touch with potential accountants and choose someone with whom you can work well. You may also consult with other business owners, who can give you tried and tested recommendations.

At ARB Accountants, we offer tailored accounting services for freelancers, contractors, limited companies, landlords, and other small and medium businesses across London, Southend, and Essex. By working with ARB Accountants, you’ll always be only one phone call away from your accountant, who is dedicated to seeing your business grow.

Frequently Asked Questions