Do I need an accountant?

Question

I am a sole trader, but mainly need someone to help me sort out budgeting and paying back debts.
End of year accounts I can do myself-particuarly with online self assesment.
Am I wasting time and money going to an accountant?

Answer 1

Presuming paying back debts are amounts owed by your customers, you would not necessarily require an accountant. A competent bookkeeper would be able to help you sort out budgets and chase your bad debts.

However, using an accountant can often save money in the long run.

You could write up your own books, produce a profit and loss account and balance sheet and ask an accountant to review these.

An accountant should do more than check your records. Accountants keep up with government legislation, and can often save you money when there are various options on how to treat certain transactions.

Accountants can very often save you tax.

They will give you advise on whether to lease, buy via a loan or hire purchase, when this arises.

They would provide information to mortgage suppliers. Banks and mortgage suppliers would often require a third party to verify your profits.

Accountants would also advise you on what you can and cannot claim.

These are just a few services an accountant can provide. The list is endless.

Why not visit two or three accountants, and find out what they can do for you. Most accountants will not charge for an initial meeting.

Answer 2

Beware, if you want an accountant to deal with the Revenue that is for Self Assessment, VAT, PAYE, first you must complete a form 64-8 which authorises that accountant to discuss your tax affairs with the Revenue under the Data Protection Act, otherwise the Revenue should not discuss your tax affairs with anybody but you. That means your wife/partner can not discuss your tax affairs.

Once you give the Revenue that authority they will discuss your tax affairs with the accountant, particulary if you nominate all post etc to go to your accountant first.

HOWEVER, it is you that remain the responsible person. You CANNOT blame your accountant if tax returns are submitted late and you receive penalties, it remains your responsibility to ensure your accountant does the correct thing at the correct time.

There are accountants out there that do not, and then leave you holding the baby as there is no come back on them.

Answer 3

Talk to a tax advisor at least, if not an accountant, to get some advice about your returns.
With regard to the budgeting and creditors/debts, they can set up your records so that you can track due payment dates and lodgements etc to see what's coming up and how the funds are.
I find you really have to do most of the legwork yourself - I draw up a creditor list at the start of each week for the month ahead, and a payment plan. It usually works well, but it does need tending to - otherwise the bills can pile up before you know where you are.
Good luck!

Answer 4

You do not have choice. An accountant is a must he has been trained he has the knowledge he greets you nicely at the first visit, free of charge, he'll save time and tax money but once you're on his book....beware, all the gain you get is his reward.

Answer 5

You are better with an accountant,when dealing with tax man and VAT man ,if you are registered for VAT, at the end of each financial year. The signature of a registered accountant makes all the difference and in my view worth every penny.

Answer 6

I would say it would be worth paying one on a one off basis just to go over things, they may be able to help you save some money or give advise about changes.

Answer 7

There are accountants that deal with small firms. I had one when I was a driving instructor working for myself and found him well worth the small fee he charged

Answer 8

yes, an accountant will save you money, (more than they charge you. works out 3/1 in your favour).....Just do it, it's well worth it.....I am speaking from experince......I was self-employed for 8 years.....never paid a 1p in tax......down to my accountant.

Answer 9

super version, i comprehend the blonde version of that comedian tale, she dyes her hair brunette and counts the sheep and the farmer bets that he can wager her organic hair shade for his canines back.