Over the last few years in the UK, the number of people choosing to become self-employed has increased significantly. Many want to run their own business and are leaving the traditional workplace to follow their passions.
Of course, having your own business and being self-employed comes with a lot of responsibilities. Not only do you have to seek clients and market yourself, but you also have to deal with all of your financial obligations. This includes paying tax.
As a consequence, self-employed persons are choosing to hire an accountant.
Is It Mandatory to have an Accountant?
There are no rules when it comes to self-employed people and an accountant. No legislation outlines that you must hire an accountant. Sole traders have the decision whether they want to deal with all of their financial obligations themselves or seek help from a professional.
The reason that many self-employed persons choose to hire an accountant is because their skills do not lie in finance. Indeed, they are running a business based on other skills and experience they have and want to seek help with filing tax returns and dealing with paperwork.
The benefits of Hiring an Accountant
As someone that is self-employed, there are a lot of advantages you can enjoy from hiring an accountant in London. Let’s take a look at some of them.
Save A lot of Time
When you first started out as self-employed, you probably only had a few clients to deal with. This meant that dealing with bookkeeping and taxes was simple. But, as you gained more experience, more clients came along. This is when keeping financial records and filing tax returns became time-consuming.
When you hire an accountant, you can regain some time for yourself. They are going to deal with all of the paperwork and they can file tax returns on your behalf. This is going to allow you to focus on your business and take some weight off your shoulders.
File Tax Returns Correctly
Every year, you have to file your tax return as a self-employed person. If you have done this before, you will know that it is not only time-consuming, but it is also complicated. HMRC stresses that your tax return must be completely honest and accurate. But, it can be easy to make mistakes when you are confused and do not know what you are doing. Making mistakes can be costly and there are financial penalties you will have to pay. This is going to be the same if your tax return is late.
On the other hand, an accountant has the knowledge and experience to file a tax return for you. They have completed this process many times before and they are aware of all of the steps involved in the process. This can offer you peace of mind and know that you can share the responsibility with them.
Grow Your Business
Do you plan to start expanding and growing your business soon? This is a big task and one of the most important things is to have your finances in order. You have to ensure that you know you have the revenue to purchase new equipment, buy other premises or hire more staff. With an accountant, they are going to be able to report on your financial situation. They are going to have an objective view looking at the numbers and you can ensure that this is the best move for you right now.
How to Choose an Accountant
If you have decided as a self-employed person that you are going to benefit from having an accountant, you are going to want to start your search. Indeed, there are a lot of accounting companies out there. But here are a few things you want to look out for to narrow down your search.
You want to ensure that any accountant you hire is qualified. This is going to allow them to process your financial obligations and you can trust that they know what they are doing. This is going to allow you to focus on other tasks and enjoy peace of mind.
Ideally, you want your accountant to have some experience in the industry first. Again, this is about giving you peace of mind since you know they have dealt with similar situations in the past.
At the end of the day, you are going to be working closely with your accountant. They are going to be looking into your finances and communicating with you. Thus, you want to ensure that they are friendly and approachable. You want to feel comfortable asking them questions, as well as feeling like they are working hard for you.
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