Making a foray into the world of business can be intimidating for first timers and veterans alike. A lot can ride upon the success or failure of your venture and the difference between the two can come down to the slimmest of margins. Does every company need a chartered accountant? No, but if you are thinking of setting up as a limited company then a good chartered accountant such as Linghams Chartered Accountants could be the key to making your business succeed.
Setting up as a limited company is a safety net of sorts and can ensure that if the worst happens and your business is unsuccessful then creditors can’t come calling for every last asset you own, so it is understandable that many business owners prefer to operate as a limited company rather than a sole trader. This comes with its own set of pitfalls as the compliance requirements for limited companies are considerably more complex than those for a sole trader and there are a lot more restrictions on what business owners can and cannot do with the money earned from a limited company. This is where a chartered accountant becomes vitally necessary as they will have the expertise to advise any business owners on the various intricacies of tax laws and regulations.
As well as helping you avoid falling foul of the authorities a good chartered accountant can save you and your business money in the long term. Armed with a deep knowledge of the tax laws, your accountant can help you to plan your activities in order to take advantage of tax incentives and offers that are available to a limited company.
Compliance with the law is vital, and saving money on your tax bill could save your business somewhere down the line but these are not the only services offered by a chartered accountant to a limited company. They can provide core services such as helping to set up Limited Company accounts and they can help you with planning and correcting your record keeping if necessary but they also offer services that are not commonly associated with a chartered accountant.
They can advise you on whether you should form a limited company or operate as a sole trader and the benefits and drawbacks of each. Should you opt to set up a limited company then your chartered accountant can help you with the nuts and bolts of the day to day running of a new business, something that can be an involved and at times hazardous operation.
Once your business is incorporated and the initial set up phase has passed, your accountant will still have an important role to play in your company. Tasks such as quarterly VAT returns and annual director’s PAYE will need the expert supervision of an accountant and when it comes to taking money out of the business your accountant will be able to advise you how to do it in the manner that will trigger the least amount of tax.
Perhaps the most valuable aspect of having a good chartered accountant available to you and your business is the peace of mind it brings with it. Knowing that there is a reliable expert on the other end of the phone line should you need them is very soothing for a business owner, as is the knowledge that your business is adhering to the tax laws and there will be no nasty shocks in the future at the hands of the tax man.
So the benefits are plain to see. Depending on your requirements, a good chartered accountant is worth far more than their fee and can be the difference between a success and a failure of your business.