A question that arises from time to time is “Do I really need an accountant?” After all, the extra expenditure is something a self-employed freelancer could do without. A freelancer’s income can vary, and it can rise and fall unexpectedly, but the accountant’s fee could actually benefit the self-employed individual in the long term.
Making mistakes in tax returns can be costly
The first point is to consider whether your business and taxes are simple. If so, there’s a possibility that you could complete the return yourself. If your business consists of several invoices a month and there are few expenses, you may not require the services of an accountant. If you feel confident with figures, there are software packages on the market to assist you with filing accounts yourself.
However, if you buy equipment or vehicles specifically for the business and loans are involved, along with payroll and VAT, it is advisable to seek an accountant. Making a mistake in a tax return can be very costly.
Do you feel confident enough to complete your return?
There are several Cheltenham accountants that can assist with completing a tax return. Your accountants in Cheltenham will ensure a professional, reliable and seamless service.
If you have set up a Limited Company, it would be advisable to employ an accountant from the outset. An accountant may also be able to advise on whether setting up a limited company is the right way to go.
Simply Business provides a thorough guide on moving from a sole trader to a limited company.
Many people who are new to the world of business may not feel confident or competent enough to complete a tax return. There is also the issue of affordability. However, if you can afford to pay an accountant, it’s advisable to benefit from their professional knowledge. Another option is a bookkeeper; some will provide a self-assessment tax return service.
If you don’t hire an accountant, you could end up with a heavy fine for a late return or for letting mistakes creep in. Negotiating the maze can be difficult, and accountants are skilled professionals. Handing the financial burden over to them means time can be freed up for business purposes. In the long run, it could save money and ultimately lead to an increase in profits.