Starting a new business is an exciting venture filled with possibilities and dreams of success. Amidst the enthusiasm, one crucial aspect that often gets overlooked is the necessity of hiring an accountant.

In this blog, we will help you understand when you might need to bring in some professional financial assistance.

1. Financial expertise

Accountants are trained professionals with a deep understanding of financial principles.

Their expertise extends beyond basic bookkeeping, allowing them to provide valuable insights into your business's financial health. From managing cash flow to budgeting, accountants play a pivotal role in steering your business towards fiscal success.

2. You’re losing track of managing expenses

You probably incur a lot of expenses running your business and keeping on top of them can be hard work. Are you keeping track of all of them and categorising them correctly on your tax returns? If not, you might be missing out on tax deductions, resulting in you paying more tax than required. An accountant can help you track and organise your expenses and ensure you're maximising your deductions, ultimately saving you money.

3. You’re losing money

If your business is losing money and you’re unsure why, that's a sign that something isn’t right. If your bank account isn't reflecting your business success, its likely there are some financial matters that need addressing.

This may relate to your expenses outweighing your income, inefficient marketing, and so on. Whatever the reason, this clearly needs to be fixed as soon as possible.

An accountant can help you analyse your financial situation and identify the key factors impacting your trading performance, and can help you implement solutions to improve your profitability.

4. You’re short for time

As a business owner, your time is a valuable resource. Handling financial matters can be time-consuming, diverting your focus from core business activities. Hiring an accountant allows you to delegate these responsibilities, freeing up your time to concentrate on growing and managing your business effectively.

5. You’re not sure how to file taxes

Taxes can be confusing, with many forms and government gateway log-in credentials to remember. You might have multiple sources of income, with multiple reports to submit, such as income tax returns, corporation tax returns, VAT returns, PAYE etc.

If you're unsure how to classify your business, what income to report, or what deductions you can claim, an accountant can be a lifesaver. They'll navigate the tax maze and help ensure you stay on the right side of HMRC.

6. Tax planning for the future

Tax planning is a complex task that requires in-depth knowledge of tax codes and regulations. Accountants can devise tax strategies that help minimize your tax liabilities, ensuring that your business maximizes its financial resources. This proactive approach to tax planning can result in significant savings.

7. Tax savings for the present

There are many tax-deductible expenses and tax reliefs available to all individuals. But do you know which expenses are deductible and which are not?

Do you know about business mileage relief? Working from home allowances? Do you know how to document any reliefs in the event of an HMRC inspection? Accountants can help you understand the tax deductions available to you and how to claim them.

Conclusion

Hiring an accountant for your new business is not only a wise investment, but a necessity for long-term success. Their financial acumen, legal expertise, and strategic guidance provide a solid foundation upon which your business can thrive. By partnering with an accountant, this doesn’t show a sign of weakness. You are setting the stage for financial stability, compliance, and strategic growth.

If you're looking for a reliable and affordable accountant who specialises in sole traders and start-up businesses, then look no further. MTP Advisory Services are here to cater for all of the above.