Why do I need an accountant for my limited company?

A blog written by Thomas Buckley-Smith

Here at Gascoynes, we specialise in providing accountancy advice and taxation services for businesses across Suffolk and Norfolk. Our expert team of accountants have years of experience working with businesses of all sizes and we often get asked whether a business accountant is a) mandatory and b) necessary.

The very short answer to this question is no, an accountant is not a legal requirement to run a business. There are, however, a number of reasons as to why it is a benefit to your business to outsource many of the financial duties to an experienced accountant.

Why do I need an accountant for my limited company?

Expertise

Let’s start by talking about expertise. It’s true, that many of the day to day tasks that an accountant can undertake on your behalf are able to be carried out by anyone. However, there are many other jobs in life that you could do – but choose to get an expert to carry out on your behalf to ensure they are done quickly and correctly.

As accountants, we study for many years to understand the nuances and intricacies of accounting. It is also our job to keep abreast of changes to legislation and ensure that our clients remain compliant when it comes to taxation, payroll and more. We are expected to undertake a certain amount of ongoing learning too, so our knowledge remains current and up to date.

You can of course do all of this yourself, but you have other responsibilities – like running a business.

Saving time

One of the benefits of working with the experts is that you are able to save time. Not just in the fact that you will free up your own time by not taking on additional, time-consuming work. But also, the fact that we are well-versed in the work that needs to be carried out – for instance, it will take us less time to work through your tax return.

As a business owner, your primary function should be running the business. The chances are you started your business because it is something that you are a) very good at, or b) enjoy doing (and hopefully both!). In order to make sure you continue to run your business well, and enjoy it, it makes sense to pass over some of the day to day administration tasks to the experts.

Saving money

There is a cost associated with an accountant, but in the long run we can help you avoid greater costs. Firstly by freeing up your time to focus on driving sales or building your business. Secondly, our expertise will help you to avoid costly mistakes in the future.

In our experience, there are more likely to be areas missed when business owners take on the accounting function themselves. It can cost more to put an issue right than to do it correctly in the first place. Also, if you are using an accountant to assist you in running your business, this is where bespoke tax planning opportunities can be found to benefit your business – R&D enhanced expenditure, as an example, is something we have seen clients miss which is a generous relief. This stems from having the discussion with us to understand your business and areas where you may qualify.

Decision-making and advice

The final benefit that we are going to talk about today is that of the business advisory function your accountant can provide.

We offer much more than a regulatory function, and our knowledge and expertise, along with our access to your financial information allow us to help you make business decisions, to provide you with sound advice and insight that you may not get otherwise.

Our ultimate aim is to help you realise your financial goals, whether that is business growth, a healthy retirement or something in between. With our understanding of your situation along with the current market and predicted trends – we can help you put a plan in place to reach those goals.

Conclusion

In conclusion, you are not obligated to take on an accountant for your business, but there are a number of benefits, both now and in the future of doing so.

If you are looking for a business adviser and accountant in Suffolk or Norfolk, our team of experts would be pleased to speak to you about the benefits that we can bring to your business.