“Should I hire an accountant?”
Unsurprisingly, it’s a question we hear often at Taxup HQ.
It’s tough running your own company. Aside from finding and undertaking paying work – a mammoth task in itself – there’s a large amount of behind-the-scenes administrative work required to keep things ticking over.
If you’d rather concentrate on bringing home the bacon, hiring a contractor accountant to manage this side of things is an excellent option.
What does an accountant do?
An accountant will generally take care of year-end accounts, payroll administration, corporation tax, PAYE and NI payments, personal taxation, tax planning advice, completion of VAT returns and completion of P60, P35 and P11D forms.
Can’t I do it myself?
Some contractors ask “why should I hire an accountant when I can do the work myself?”
Indeed, given the wide range of sophisticated accounting software available online, you may be tempted to head down the DIY accountancy path in an attempt to save money.
But beware – although it may seem like a smart way to save a bit of cash upfront, skimping on professional contractor accountancy support may end up costing you more in the long run.
A great way to save precious time
First and foremost, engaging the services of a contractor accountant will save you time. And it may be a tired cliché, but as we all know, time is money.
A decent contractor accountant will typically charge you around £120 per month. How many hours of your time is this equal to at your standard contracting rate? Do you think you could get all your monthly financial administration done in that amount of time?
If the answer is no, then the benefit of hiring a professional is obvious.
Taking the headaches out of tax
The world of tax legislation is a confusing and ever-changing one, and one that you are unlikely to have the time or inclination to venture into. Hiring an expert will mean that you don’t have to.
Accountants are required to undertake continuing professional development in order to retain their chartered status, so you can be assured that your accountant will have a wide-ranging and up-to-date knowledge of tax legislation and regulations.
A sound source of advice
Your accountant’s experience and knowledge will mean that they can provide invaluable advice in a way that accounting software just can’t.
They will be able to advise you on the most cost-effective way to run your company and suggest tax mitigation strategies specific to you and your personal circumstances as a contractor.
They will help you handle your finances to provide maximum returns, and may well save you more in tax liability than it costs you to hire them.
Should I hire an accountant? A no-brainer
The advantages of hiring a contractor accountant speak for themselves: it will almost definitely save you time, money and a lot of headaches.
If you’d like more information about hiring an accountant don’t hesitate to get in touch for a free, no-obligation chat.