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Which account services does your business need?

Every company is different, which means that each firm needs a package of accountancy services that is tailored to their needs. Clearly, a window cleaner that is operating as a sole trader in the Heswall area is not going to need as many accountancy services as a multi-national that operates out of multiple locations does.

Most business owners understand this, but struggle to work out what services they actually do need. To help you to decide, we have put together this simple post.

Your own skill set

If you have good IT skills, and only need to keep basic accounts for a small firm, there is a chance that you could do most of the work yourself. There is certainly no harm in trying to do so for a few months. After all, should you find that you cannot keep your accounts up to date, you can always hire a Heswall accountant to do the work for you. Just be careful not to get too far behind on your data input before delegating your accountancy tasks to a professional.

How much time you have available

Another important consideration is time. If you have plenty of time on your hands, you and your staff may be able to handle the data input tasks and perhaps the payroll as well. However, you are still likely to benefit from hiring an accountant to produce monthly profit and loss reports for you, look after your VAT receipts, and make sure that your tax return is accurate and filed on time.

Even if you have the time to do your own accounts, you need to think carefully before doing so. It is important to realise that your time is precious. You need to bear in mind that hours spent of issuing invoices and chasing payment could normally be better spent marketing your business and getting more clients.

It is important to remember that your time is precious. If you spend 10 hours a week doing your accounts and your time is worth £20 per hour, in a year, you will have effectively paid out £1,040 to do your taxes. You need to ask yourself is that really value for money? Sometimes, you have to spend money to make money, which includes paying professionals to do certain tasks for your company, and while Heswall may have a reputation of being an affluent part of the Wirral, it doesn’t mean money should be wasted.

How complex your business finances are

The more complex your business model is, the more important it becomes that you hire a good accountant. If you get to the stage where you are employing a team of people, exporting products and are VAT registered, you are highly unlikely to be able to successfully keep your own accounts.

Doing so requires you to be aware of several sets of regulations, understand how to adhere to them, and be able to prove that you have done so. The fact that you only have to miss one detail to get into serious problems with the tax and revenue authorities means that hiring an accountant usually makes good business sense.

It does not matter whether you operate out of Heswall, the Wirral or another part of the UK you need to prioritise keeping up-to-date accounts. Doing so will help you to keep cash flowing through your business, and enable you to identify profitable products and services that you should be trying to sell more of.

Posted by Peter
September 27, 2016

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