An accountant is a third-party professional who plays an important role in managing your finances. As they will boast a degree from a reputable institution, handling taxes, payroll and expenses is made much easier than attempting such tasks on your own. Also, accountants are well aware of any laws that govern your specific situation. By keeping up to date, they will make absolutely certain that you are in accordance with all of the rules stipulated by the HMRC. If you find that you are confused in regards to how such (potentially) complicated matters operate, hiring a personal accountant is a great option. Let us take a deeper look into the role they play and how they are able to help countless individuals and businesses.

The Self-Assessment

A self-assessment is simply another word for a personal tax return. These documents must be filed to the HMRC each and every year. They will need to contain all of the most important information such as your earnings, your deductions, any purchases and other relevant expenses. All of the information must be filled in correctly in order for the HMRC to calculate how much you will pay as well as what you may be entitled to in the form of a financial return. As this can be quite a complicated process, an accountant will be able to compile all of the necessary data in an organised manner. Not only can this cave you a great deal of time, but you can rest assured that all information is completely accurate.

Company Accounts

While personal tax returns can be complicated, this is even more true when managing the accounts of a company. Whether you own a private business (LTD) or a Public Limited Company (PLC), all accounts need to be kept in order for the taxes to be filed properly. Unfortunately, this can be quite difficult to manage when you are concerned with day-to-day operations. So, a company accountant will frequently be used. They can be hired on a one-off basis although many will be directly employed by the business. This is wise due to the fact that they will have much more familiarity with your operations. Although they will naturally charge a fee, this is often counteracted by the substantial amount of savings that you will experience once the returns are filed to the HMRC.

Factors to Take Into Consideration when Choosing an Accountant

It is absolutely essential that the accountant in question is able to provide you with his or her relevant credentials upon request. Anyone who will not make these readily available should be avoided. A few other questions that should be asked include:

  • What are the accountancy fees that need to be paid?
  • Are these up-front costs or will they be settled upon completion?
  • Does the professional boast a solid reputation?
  • Do they specialise in business matters or are they primarily concerned with self-assessments?
  • Are they recognised by the HMRC and relevant governing bodies?