Last Updated on Nov 29, 2021 by James W
When you are gearing up to start your own business or are already a startup enterprise, one of your most important tasks is to make sure you have a good understanding and knowledge of your taxes. It’s not just about the deadlines, either – it’s also about knowing what to include in your returns and how you can file them properly. But running a business isn’t just about your taxes; it’s also about sound financial management and being responsible for keeping up to date with your financial records. If all of this already sounds daunting, it’s worth looking into what an accounting service can do for you. Having an accounting service isn’t just another ‘useless’ expense – it can help your business grow and give you a complete understanding of your finances and the direction where you should go. If you aren’t quite set on your decision to hire an accounting service, here are the top ways you can utilise them for your business.
The time perspective
As your business develops, time is ever more precious. Once you become an entrepreneur or work as a contractor, consultant, or freelancer, your foremost goal would be to generate good business opportunities and fulfil your work assignments and contracts. But spending hours managing your finances can take away your precious time from the actual work you have to do. You can save precious time when you employ an accounting service, such as the accountants in central London, from GSMAccountants.co.uk. Not only this – you can focus on what you need to do for your business’ growth. Your chosen service will undoubtedly be updated with the latest regulations and rules, not to mention the deadlines and required formats, of HMRC. With their service, you can be more efficient with your time and concentrate on other matters without worrying about whether or not you are doing everything right finance-wise.
Your liability on taxes
Good accounting services will also have a proper understanding of how you can save money. In addition, they can serve as counsel on how you can be more tax efficient. For instance, they can advise you on how you can operate, whether as a limited company or sole proprietor, to get the most out of your taxes. In addition, they can guide you regarding what you can claim, how you can pay yourself via dividends, and more.
Avoidance of tax fines and penalties
When you become a business owner or self-employed individual, one of your primary responsibilities is to make sure you stay on top of your financial paperwork so you can avoid hefty fines and penalties. But your accounting service can ensure that you meet your tax deadlines and, more importantly, ensure that everything is filed correctly. Imagine having to pay a penalty of £150 per day for late submissions or even a huge £1500 penalty for a delay of six months! Of course, these are just for late submissions – it doesn’t even include fines for errors in your corporation tax, VAT return, or self-assessment tax return. But if you have an accounting service working with you, you can avoid all these potential problems and work on growing your business. They can even give you the right advice on business investments and assets, further flourishing your business.
