The primary purpose of every business undertaking is to make a profit. The ideal way to easily know if your firm is making a profit or loss is to minus your expenses from returns. But considering the associated items, complexity, size, and time, it's never an easy task to conduct the typical "plus or minus" required.
This is a vital duty requiring the service of a good accountant to assist your company in determining whether you're running a profit, loss, or just staying in a survival mode.
A recent research survey revealed that about half a million UK companies started the year in 'significant financial distress.' It was also found that the services of an accountant are crucial to the survival of about 61 percent of businesses in the United Kingdom alone.
Given the direct relationship associated with the risk of running a business, and the benefits of hiring the services of an accountant, it's not surprising to note why every business in the UK needs one.
One of the reasons many companies in the UK, most especially the smaller ones, may choose not to employ an accountant's service is the fact that they believe their roles are limited to just bookkeeping alone. This has made many business owners not realise the tremendous benefits they are missing without an accountant's service.
What are the roles of an accountant in a company, and what are the benefits your business stands to gain from employing one?
Preparation of Payroll
This involves a series of basic calculations to determine each employee's base pay as well as deductions for income tax and National Insurance Contributions. Other employee benefits such and employee contributions to pension funds and health insurance plans also need to be accounted for. Employees “take home” pay is calculated and employees are presented with pay slips to show how their take home salary is calculated. Company records are also maintained to facilitate the process of tracking information for internal and external tax and financial reporting
This is a time-consuming endeavor. Especially if your company is involved in a lot of purchasing and supply operations. Accountants ensure daily logging of every receipt and invoice that can quickly be assessed at each accounting year.
Preparing Annual Accounts
Specifically, a limited liability company in the UK will need to submit their annual business accounts with HMRC and Companies House each year. Accountants are proficient experts in doing this. Inability to provide annual reports will result in huge fines and perhaps legal tussle.
Perform Tax Returns
Similar to the provision of Annual Accounts, a business-oriented company is also required to submit a tax return at the end of a business year. Accountants can quickly prepare this document, which includes profit/loss account, adjusted profits, and corporation tax measurement.
Estimate the Company's VAT
No business wishes to have issues with the company's VAT payments. Accountants have the expertise to determine your firm's VAT returns. They usually do this by choosing the right payment scheme without additional pay or penalties.
Start a new company
The vital role of an accountant goes beyond the period of actual business operations alone. Accountants can assist in determining the most beneficial business structure for an enterprise. They also assist in the registration of VAT and Corporation Tax with HMRC and perhaps Company House.
Decrease business tax liability.
Accountants understand the intricacies associated with tax and business operations. Their services cover recommending the ideal tax efficiency of operating your firm. This includes dealing with HMRC on the company's behalf and exposing the flat rate VAT scheme's benefits.
Guide against Tax Penalties and Fines
An Accountant’s job is to ensure the firm abides by the tax laws. Their role is to ensure that they keep up with tax deadlines and other regulations, thereby avoiding the risk of tax penalties and fines on the business firm.
They assist in business growth.
Accountants' knowledge is vital in determining where the profit is mostly coming from and what is causing loss or unnecessary expenses. With the advice and keen eyes of accountants, they can help develop a business.
Eliminate tax-related issues.
Accountants' expertise helps solve the complexity of tax concerning the business owners and the business as an entity. Accountants form connection with HMRC and Company House on solving business tax-related requirements.
Accountants save business quality time.
Good accountants perform their functions excellently without delay. Thereby business owners can efficiently perform other necessary tasks for business growth.
Icon Offices provides a fully comprehensive Accountancy Service structured in the way of a quarterly subscription fee based on your company’s annual turnover. Please see here for additional information.