Accounting Services and Your Business Needs
When you own and run a business, the most important factor in your success is how you manage your finances. Cash flow, profit and loss, wages, invoices and tax are all areas where you may have your own limited knowledge but you will need an accountant if you want to be able to run your company successfully. But what are the services that you require from a financial expert? Would it be better to employ someone in-house or outsource your accountancy needs to an independent firm? And how much are you prepared to pay for the work of an accountant? You will be able to answer most of these questions by looking at the size of your company, your annual turnover and the amount of staff you employ. If the numbers are big then it may be more economical to employ a full or part time accountant. If you have a more modest business then you may find it better to use an accountancy firm for all of your financial needs.
But what are the accounting services that businesses need? Well, companies come in all shapes and sizes; they have different values, different goals and different set-ups. So although you may require some of the services listed below, you might not need all of them. Let’s take a look at the different services that accountants offer and how they are relevant to a business.
Tax-Accountants can actively manage your tax payments to make sure that you only pay what you have to, avoiding double payment and managing expenses.
VAT-With changes to the rate of VAT happening regularly nowadays, it is important that your finances keep up with the changes. In many businesses, you will have to plan for the VAT rise; change prices and adjust financial documents. Accountants have a lot of experience with this and will be able to advise you on how to manage your businesses VAT.
Payroll-When you manage employees, you are responsible for their economic welfare. You have to make sure that they are paid the right amount at the right time; you need to be able to advise them on tax and national insurance contributions and if you have a pension scheme you need to discuss this with them as well.
Bookkeeping-Most businesses will be inundated with paperwork. Invoices, receipts, bank statements and communication from HM Revenue and Customs; these are all documents that you will have to deal with. If you are a busy manager, you have little financial knowledge or you do not feel comfortable with answering them properly, your accountant will be able to deal with them and make sure that your accounts are up to date at the end of the financial year.
