Running your own business is a very rewarding way to work. But it’s not without its challenges.
Having to keep on top of all of your paperwork and accounts takes time out of your already busy schedule. That’s why lots of businesses, especially startups, make the decision to hand over their financial baggage to accountants.
That’s a smart decision – and if you’ve done that, you need to make sure you know what your accountant is (and should be!) doing for you, so that you’re kept well in the loop.
Your accountant’s role
It may sound obvious, but your accountant’s main job is to stay on top of your business’s finances for you.
Your accountant is ultimately there to make your life a little easier – and we know firsthand that, when you’re a start up, there’s nothing more valuable.
Firstly, using an accountant means you won’t need to concern yourself with filing VAT returns or dealing with your statutory obligations.
It doesn’t matter if you’re a sole trader, part of a limited company or in a partnership – a good accountant will know all the right things to do with your accounts and statements, so you don’t need to stress or think about it. They’ll handle all the routine reporting and make all the calculations for you in a tax-efficient way, hopefully saving you some money in the process.
Your accountant can also handle your entire payroll on your behalf, making sure your staff are paid correctly and on time.
Payroll can be a huge drain on your time each month, so letting your accountant take care of it means you’ll save having to copy everyone’s hours down and make the relevant deductions for National Insurance or pensions.
And, with the rollout of Making Tax Digital (MTD), all of your accounts will be dealt with online. That means that by giving an accountant access to your MTD-compatible accounts and software (like Xero for example), you’ll both be able to access your important paperwork on the go.
Why startups should use an accountant
Having good, reliable support when you start a business is always a bonus. By using an accountant, you’re giving yourself a stronger start than if you did it all on your own.
For startups, accountants can really add value by going over and above the day to day numbers. They can be a key partner for you – running you through everything and helping you build a business plan.
This sort of guidance is essential if you’re looking for a loan, or hoping to attract investors for your business.
Having an expert by your side throughout the teething period of your business means you can relax (at least a little) knowing that you’re in good hands.
The best accountants have a keen eye for any potential shortfalls or any opportunities for you and your business, helping you spot things you might not have been able to identify on your own.
If you grow successfully, and your business starts to generate enough revenue (over £85,000 annual turnover), you’ll need to register for VAT.
When that time comes, your accountant will help you register, or potentially unregister whenever you need to.
How we can help you
At Leap, we’re all about making startups a success. It’s what we love and it’s why we’ve made it our day job. If you’re thinking about working with an accountant, get in touch.
Get in touch with our accounting team.