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At What Point Do You Get an Accountant?


February 28, 2024

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Whether you’re a small business owner, a freelancer, or an individual with complex financial situations, there comes a time when you might consider hiring an accountant.

But at what point do you get an accountant?

This is a common question that many people grapple with.

Let’s explore this topic further and understand why hiring an accountant in Warrington could be the best decision for your financial health.

Understanding the role of an Accountant

Before we delve into when to hire an accountant, it’s essential to understand what they do. An accountant is a professional who handles various financial tasks such as bookkeeping, tax preparation and filing, auditing, and offering financial advice. They are well-versed in tax laws and regulations and can help you optimise your finances to minimise tax liability.

When you’re starting a business

One of the critical times to consider hiring an accountant is when starting a business. Starting a business involves numerous financial decisions that can significantly impact its success. An accountant can help you develop a business plan with realistic and robust financial projections. They can also assist in setting up your company’s legal structure (sole proprietorship, partnership, limited comapny) that best suits your situation.

Moreover, if you’re seeking external funding or loans for your startup, having an accountant by your side can increase your chances of success. They can prepare necessary financial statements and provide advice on handling your finances effectively.

When your taxes become complicated

Tax preparation is another area where the expertise of an accountant becomes invaluable. If you have straightforward finances – single income source, no investments or property income – you might manage without one. However, as soon as things get complicated – multiple income sources, investments, property ownership – it’s time to consider hiring an accountant in Warrington.

Accountants are experts in tax laws and regulations. They can help identify deductions and credits that you might miss and ensure you’re not overpaying on your taxes.

Moreover, if you’re stressed by the prospect of contacting HMRC, an accountant can help you through the process and become your agent for all things HMRC.

When you lack time or interest in managing your finances

Managing finances requires time, effort, and a certain level of interest. If you’re a business owner or freelancer juggling multiple roles, finding time for bookkeeping or tax preparation can be challenging. In such cases, hiring an accountant can free up your time to focus on what you do best – running your business.

Similarly, if managing finances isn’t your cup of tea or if it causes undue stress, it’s better to leave it to professionals. An accountant in Warrington can handle your financial tasks efficiently and accurately, providing peace of mind.

When you need to implement software

Your business is better managed if you can get it onto a cloud based accountancy package, such as our favourite provider Xero, it is a great package but will best serve you if it is set up properly and you are utlising all of it’s functionality.

An accountant can help you set up the software and ensure it is recording your tranactions in a compliant way. Both for VAT and income tax purposes.

To wrap up!

The right time to hire an accountant depends on various factors – the complexity of your finances, the stage of your business lifecycle, your comfort level with financial management, and the need for professional advice. Regardless of when you decide to hire one, choosing a competent accountant in Warrington will ensure that your finances are in safe hands.

Remember that hiring an accountant is not just about crunching numbers; it’s about building a relationship with a professional who understands your financial situation and goals. So take the time to find someone who is not only qualified but also aligns with your needs and values.

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