Anyone who is thinking of, or has already set up, their own
business may admit to having preconceived ideas about how tax and accounting
works.
For some, these misconceptions could have put them off even starting
up their own business so instead, they have stuck with the security of working
for an established employer.
Don’t let this stop you from fulfilling your dream of
running your own company.
Below are some of the most common misunderstandings.
1. My business is too small to need an accountant
Regardless of how big or small your business is, you can
always benefit from the help of an accountant.
If cash flow is limited then admittedly a full time employee
may not be the most practical step. However, many small companies enlist the
help of an accountancy practice that can keep track of figures, submit tax
returns on time, carry out payroll services and best of all, advise you on the
best ways to save your company money.
Even if you’re happy to take on the extra workload yourself,
hiring an accountant purely for the money saving advice can be well worth your
time. You stay in control of what you want when, but you benefit from the
professional knowledge, experience and advice.
2. I can do my accounts myself
This is of course true – you can do your accounts yourself.
However, as mentioned above, even though it may not seem like it at the time,
an accountant can save you a lot of money in the long run.
Furthermore, very few successful entrepreneurs got to the
top because they spent their days bookkeeping.
You are of much better value to your business when you spend
time working on new business development and growing the company rather than
doing things that you can hire others to do.
3. HMRC is always right
Just like any business, HMRC isn’t immune to making
mistakes. Although they endeavour to achieve incredibly high levels of
accuracy, human error is part of life.
If you are uncertain about a tax bill, the complexities of
filing online, your tax code or anything else to do with your accounts, check
out the FAQ’s and help available on the HMRC website.
Alternatively, if you have been left incredibly confused by
tax codes and balance sheets, or just want help or advice, contact Omni Chartered
Accountants who will be able to advise you accordingly.
