In the early days of a new business, it’s difficult to decide how to distribute what little money you may have. Some things are essential; a platform to sell your product or service, marketing to get it in front of people and staff to help you meet demand. But some things leave you wondering whether you should enlist someone to take care of it for you, or whether you should just tackle it yourself and save some money.
It is common amongst freelancers, startups and new businesses to proclaim how easy it is to do their own accounting, and in some instances, this may be true. However, in some circumstances, balancing your own books, taking charge of your own payroll and compiling your own tax returns can be very time-consuming and very stressful.
The case may be that you do not need an accountant, not everybody does, but here are some things you should consider before deciding if you should get some help.
Do you consider your business and tax affairs to be simple?
If your business consists of you raising one or two invoices per month and your expenses are mainly regular direct debits, then it’s probably safe to say your accounting needs are simple and you don’t need to employ an accountant.
If, however, your clients pay you in advance, you need to buy large pieces of equipment, like a van or a car, or you need to take out a loan or finance agreement then you should enlist the help of an accountant. These areas complicate things slightly and mistakes can be costly.
Are you a Limited Company?
If you are, then it’s worth getting an accountant. Even before becoming a limited company, it’s worth speaking to an accountant first to check if becoming limited is the best thing to do for your circumstances.
If your business is simple, and you have confidence in your bookkeeping skills, then it is possible to file your accounts yourself. However, if you are not confident, hire an accountant and avoid costly mistakes.
Are You Planning on Running Payroll or Becoming VAT Registered?
Payroll and VAT are two accountancy additions that can quickly become very complicated. If you are only going to be running a director’s payroll then you may be able to keep things simple and you may be up to taking on the task yourself.
There is software available to help with payroll and you may be confident with the VAT aspect of things, in which case an accountant won’t be necessary. However, if you have any doubts it could work out cheaper in the long run to get an accountant on board straightaway.
Get some advice. Hiring an accountant could be an unnecessary expense, or it could save you a lot of money. If you are not sure, speak to someone who can give you some friendly and impartial advice.
James and Uzzell are here to help. We pride ourselves on providing an honest and trustworthy service. Our friendly team would be happy to discuss your requirements with you and tailor an accountancy package to best suit your requirements. If we think that you will be capable of going it alone, we will say so; we can offer as much or as little support as you need.