Many accountants are now offering their services worldwide. That has enabled startups and small companies to acquire the assistance of the best contractor accountants without the need to hire them in-house. Still, many entrepreneurs have doubts about this kind of setup, which is understandable since accountants are essential employees in any company.
When do you know if a contractor accountant option is right for you? When is it a good decision to make for the company? This article will help you understand what you need to know about this scenario.
Hiring an Accountant Under a Contract
Nowadays, small business entrepreneurs have many options when it comes to their accounting. Many outsource because they do not have the time, energy, or mental capacity to perform the tasks themselves.
In the UK, there is no law obliging small companies to hire an accountant. If your company has 50 or fewer employees and your annual turnover is less than £10.2 million, you are exempted from hiring one. However, you still need to learn the UK tax system and manage that on your own.
Therefore, a small business owner, contractor, or self-employed individual can handle their tax systems themselves. The great thing about the UK tax system is that changes are announced early so everyone is informed ahead and can make their necessary adjustments.
If you have the essential skills to fulfill the job of an accountant and bookkeeper, then you might not need to hire one at all. Otherwise, you might want to consider seeking professional assistance from time to time.
Services of Best Contractor Accountants
The kind of service you get from the best contractor accountants depends widely on what they offer and what you agree on, but here are the standard services that you can get from them:
- Setting up and running your company’s payroll
- Other company-related financial paperwork
- Company registration for VAT, including the filing of the quarterly and annual returns
- Creation of the company’s annual accounts
- Filing the company’s annual accounts together with the Companies House and the HM Revenue and Customs
- Personal tax returns filing
- Tax planning advice
- Confirmation statements filing
- Professional reference provision for those applying for loans
Why Hire an Accountant
While anyone can manage their paperwork independently, there are still cases when you might mistakes. This can lead to penalties, and that is one scenario where your accountant can come to the rescue. Having their professional knowledge can guarantee that you commit fewer mistakes in the future. They will also handle all the stressful situations for you.
Furthermore, they are knowledgeable about the legislation pieces that make the UK tax system a bit complex. With this, they can ensure that their provided accounting duties daily are at quality service and according to the law.
What is also great about contractor accountants is how you can customise the service you need. If your help only involves consultancy, they can provide that. If you need thorough assistance, they can also provide that.
Hiring an accountant can help you deal with your financial responsibilities and concerns swiftly and effectively. Before hiring one, make sure that you find an experienced professional who knows what they are doing—one with years of experience and training to guarantee excellent financial services.