Read on to find out why
When thinking of an accountant, most people think they’re just bookkeepers or just there to assist with accounting software, but they provide a much broader service to contracting and freelance businesses. Contracting accountants ensure that you stay compliant in the work that you do, that you don’t pay more tax than you need to and provide important advice that help you make key decisions, day to day.
Brookson explore why you need contractor accountants and how they can help you, regardless of what industry you may work in.
Strategic planning
When working as a contractor, whether as a limited company or under an umbrella, strategic planning is vital. As you grow your business and your skills, it’s essential that you plan out your future. Where you want to be in the future, how you want to achieve that goal and what you’ll be personally doing.
Whatever your future plans are, involving a contractor accountant early on in the planning stages can work wonders as they’ll be able to suggest measures to assist in achieving your goals. Giving them the chance to guide you through small business legislation and rules that you otherwise wouldn’t know. Along with offering you knowledge and experience from their past clients that they’ve worked with who may have planned differently to you.
Tax planning
Planning for tax is one of the main reasons why you’ll be hiring an accountant, to guide you through tax legislation that you may find confusing. Going it alone can often lead to paying more at the end of the financial year.
Once you start to earn more money and head into the £30,000, limited company area then it’s smart to put time into legal tax mitigation strategies.
Contractor accountants will be able to suggest tax mitigation strategies that are unique to you and your personal circumstances. It’s important to leave personal or company tax returns to a qualified contractor accountant who will be able to save you money in the long run.
Compliancy
In the contracting world it’s extremely important that you stay compliant in the work that you do, or you risk paying a hefty increase in tax contributions. With tax legislation constantly updating and coming into law, you’ll most likely not have time to keep your eye on them all.
Hiring a contractor accountant is a way to ensure that you and your company are compliant in every way. Accountants are required to undertake continued professional development (CPD) to ensure that they stay up to date on the latest changes to tax and company law.
Although contractor accountants will give you advice when using accounting software, the advice is only as good as the data you enter. So if you’re not involving your contractor accountant at every step, you could be skewing the results.
Get in touch with a contractor account today and ensure that you and your company is heading the right direction!
Leave a Comment