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It’s advisable to start looking for an accountant when you’ve got your business idea, you’re on the hunt for a business bank account and are looking at ways to promote your product or service. A good accountant will not only be able to handle your finances but be able to offer sound business advice too. That’s why it’s a good idea to involve a trusted accountant when first setting up your business.
However, with times as they are, we understand you may want to secure some kind of income before adding your first professional service to your outgoings (please don’t forget insurances to cover yourself though). That’s why we’re bypassing the above for now and hitting the ground running with you by jumping to the next step in your journey.
Identifying the Need for an Accountant
If you’ve been running a business or have sources of income outside of an employed position, you’ll need to initially check whether you need to send a tax return.
This will determine your tax responsibilities and also the need for an accountant along the way to help you navigate not only your self-assessment returns but also comply with HMRC’s stringent standards.
Did you earn more than £1,000 from working for yourself?
You must send a tax return if in the last tax year* you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on) or were a partner in a business partnership. This applies even if you had another job as well.
This amount you earned in excess of £1,000 includes any coronavirus (COVID-19) support payments you received and applies before taking off any expenses.
*The tax year runs from 6th April to 5tApril.
If you can answer yes to the above, then this is the first sign it’s becoming essential for you to find an accountant.
Still unsure whether you need to send a Self-Assessment tax return?
On the Government website there is a handy check tool to find out if you need to send a tax return. Check now >>
(The tool will not send your details to HM Revenue and Customs)
What do I look for in an accountant?
Here’s a few things to lookout for in a good accountant just as some initial guiding steps, you’ll obviously get a feel for whether you’re a good fit when you meet too.
- Reviews: Take a look at their customer reviews, in particular Google. Google makes it very hard for fake reviews to be published, from Google account recognition to IP addresses, if they catch scent of something fishy, they’ll take it down.
- Qualifications: You need to check they’ve got professional qualifications in place so that you can be confident your affairs are being handled by an expert. For example, you can look them up on ACCA here: ACC Accountancy firms: search results | ACCA Global
- Transparency: An accountant should be up front about what services they offer and how much they will cost. They should offer a free, no obligation initial meeting and follow up with a quote based on your expressed needs.
- Ease of Communication: Check they offer multiple ways of getting in touch with them, their phone numbers and email addresses should be clearly displayed on their website and they should be happy for you to pop by their offices anytime. We love it when our clients visit us.
Your accountant should be a sounding board for your ideas or the direction you’d like to take your company, so it’s important they are an authority in their field. Giving advice, tips and ways you can make your business more profitable should flow easily from them. Why not check out their social accounts to see how they fare and whether they’re posting useful content regularly.
‘But why’s it so important to be so selective when it comes to choosing someone to manage my accounts?’ we hear you say. Well, from the outside it might look like a simple task, something your aunt who’s a whiz with numbers can manage for you, but in truth it’s more complex than that.
It’s become more important than ever to ensure they’re meeting HMRC’s stringent standards for agents.
Non-compliancy can lead to all sorts of complications from data breaches to penalty fines and even criminal proceedings. And it’ll be you that’s liable. Find out more about the importance of getting it right in our article ‘Choosing the right tax agent: Why it's more important than ever’.
What will the accountant do for me?
A good accountant won’t only handle your returns, bookkeeping, payroll etc. They simply make business better by supporting whatever it is you need.
They can setup your business, help with strategy, fix your cash flow, manage your debt, stock, staff and set you up with cloud based digital systems! The offerings are limitless as when they come across something outside their remit, they can connect you with someone who can provide that service.
An accountant truly is the best thing you can get for your business.
You can and should also be able to have frank conversations with your accountant, after all, they’ll be the ones watching your back when it comes to tax.
A great accountant will:
- lower your tax exposure
- help you deal with old tax debts
- fix poor record-keeping
- help you avoid audits
- make sure your books are watertight if you’re audited
Take our Blast off Programme for example
Here are some of the benefits you can expect from our Blast off Programme which is designed for new businesses.
- Confidence that your company registrations have been handled correctly
- Peace of mind that your business is compliant with HMRC and The Companies Act
- Support with VAT
- Management of your payroll, if applicable
- Unlimited phone and email support without the fear of racking up extra fees
- Free up your time so that you can focus on growing your business
- Achieve a better work/life balance
- Shape the future success of your business
Plus, if you’ve already got an accountant who is just going through the motions, you’ll be amazed at the difference a top accountant can make. They can bring a tonne of extra capability and insight into your business.
Can I change accountants if they’re not right for me?
Yes, it really isn’t much hassle to switch accountants – the majority of it you won’t even know is happening, we promise.
Not only that, but if your accountant isn’t supporting your needs, misses deadlines or is simply hard to get hold of then you should change. If you’re unsure of whether to make the break, download our free guide located at the bottom of this article; ’10 Reasons Why You Should Change Your Accountant’, it may make you more certain it’s the right thing to do.
Want an accountant who can help your business grow while ensuring your tax affairs are taken care of? Look no further, Blue Rocket Accounting specialise in growing businesses, we’re rated 5 stars by our customers and our accountants are fully qualified, giving you peace of mind.
Speak to us today to find out more. Call us on 01322 555442 or email happytohelp@bluerocketaccounting.com
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