10 signs its time to work more closely with your accountant. Your accountant isn’t just there for accounts. They can advise on hiring staff, help raise finance and guide you as you grow your business.
1. You want to plan growth
A good accountant will be able to offer guidance on taking your business to the next level and the best way to do it, from structuring the business properly to making sure you avoid pitfalls like over trading.
2. You suspect you’re paying too much tax
Do check with your accountant that you’re making full use of any tax allowances and relief’s you can claim.
3. You’re looking for management advice
When you’re expanding, you need to make sure the business is being handled in the right way. An experienced accountant can advise on issues like adequate working capital, good stock control and invoicing.
4. You have complicated tax affairs
Few people can say they’re genuinely on top of taxation rules and regulations, but that’s just what your accountant is there for. A good accountant will almost certainly recoup the cost of their own fees, particularly if you have complex accounts.
5. You’re looking to raise finance
Accountants aren’t there simply to manage your money. They can also steer you in the right direction for additional finance without putting your business at risk, looking at options such as taking out a loan, increasing an overdraft or issuing share capital.
6. You’re thinking about buying another business or selling up
In this scenario, it’s vital to get professional advice, whether it’s about getting an accurate business valuation, extracting your money out of the venture or assessing your best options for tax efficiency.
7. Your turnover is increasing
If your annual turnover is getting close to or above £77,000, you’ll need to become VAT registered. If you make all or nearly all of your sales to VAT-registered businesses, you may benefit from being VAT registered even if you are under the threshold, as you can then reclaim VAT on any business expenses you incur. An accountant can deal with VAT registration for you.
8. You’re starting to employ staff
Talk to your accountant about payroll regulations and your employer obligations. From April 2013, Real Time Information (RTI) means you’ll need to submit returns every time you make a payroll payment, rather than submit them once a year, so speak to your accountant if you’re unsure.
9. Your general circumstances change
It could be that you want your spouse to join the business and you’re interested in tax planning. Or you want to become a limited company or set up a childcare voucher scheme. It’s always worth speaking to your accountant if your situation changes.
10. You’re not sure your accountant’s still right for you
As you grow, you should regularly reassess whether your choice of accountant is still right for your business.