Nothing can stop you from going it alone, but business finance can be complicated if you’re inexperienced or don’t have a relevant qualification. An accountant will help you manage your money wisely, handle taxes correctly, and plan for growth. They can also prevent costly financial errors and save you valuable time. And last but not least, they can provide peace of mind by ensuring financial stability and compliance with relevant regulations.

Look for qualifications that show the person is a Chartered Accountant (ACA or ACCA) or a Certified Public Accountant (CPA). These qualifications mean the person has the expertise needed to handle your financial matters effectively and in compliance with government regulations.

You should check that you feel comfortable working with them, that they’ve got relevant experience, and that they can provide you with good references. Finding a good fit in terms of personality and shared values can also be essential for a successful partnership.

An accountant is a financial professional who provides a broad range of services, including financial analysis, tax planning, and strategic financial guidance. A bookkeeper focuses on recording day-to-day financial transactions and maintaining accurate financial records.

A sole trader is a person who runs their own business alone. Sole traders keep all the profits but are also responsible for any debts or losses. A limited company is separate from the person who run the business. It’s the company that takes on risks, debts, and makes money, not the individual owners. The owners have limited responsibility for debts, meaning their personal money is safer. So, in short: a sole trader is on their own, while a limited company involves less risk for the owner’s personal money.

You may not require a monthly accountancy service – though it depends on the nature of your business. However, whatever your business, it’s a good idea to speak to an accountant about topics like managing taxes and ensuring compliance. An accountant can also give you financial advice to help your business grow and remain healthy.

Most of the costs you can put through your business are obvious. These include your office expenses, staff, equipment, stock, and advertising and marketing. But there are a few areas that can be confusing. You can deduct the cost of uniform or protective clothing, but not regular clothing, even if you buy it specially to wear to work. You can deduct travel costs and food expenses when you travel away from your normal place of work. But you can’t deduct commuting costs or meals you eat at your regular place of work. If you use something for both private and business use, like a phone or car, you can only deduct the portion of the cost that’s for business use. It’s always a good idea to talk with an accountant to make sure you’re claiming everything correctly.

Financial statements and reports in accounting are crucial because they provide a clear picture of the financial health of a business. They show how much money is coming in and going out, which helps business owners make informed decisions. The statements also help track profits, spot issues of concern, and underly plans for the future, ensuring the business stays on track.

This will depend on your personal situation and the financial situation of your company. Generally, if you run a company and take a salary, you’ll pay more income tax but less corporation tax. For dividends (which are a share of the company’s profits), it’s the other way round. There are also other pros and cons, and often a mix of the two is the most tax-efficient option. But because it’s a complex area and rules sometimes change, it’s essential you take professional advice before making a decision.

They do it by identifying financial trends in the business and spotting areas for improvement. They use this analysis to predict future financial outcomes, helping companies to plan and make informed decisions for change.

They do this by preparing and filing tax returns accurately and on time. They also provide tax planning advice to help minimise tax liabilities legally, ensuring businesses comply with tax regulations and only pay what they owe.

They do this by regularly attending training, workshops, and seminars. They also rely on professional organisations, publications, and online resources for the latest updates to provide accurate and compliant financial advice to their clients at all times.