Why hire a contract accountant? In a limited company, the requirement for a large amount of administration occurs. This rises the need to hire an accountant to save you time and money.

Hiring an accountant gives you the peace of mind that your business’s tax affairs are in order, he/she will also be responsible for providing you with legislative advice affecting your limited company.Contract accountants help your business at different stages during growth. So the question rises.

When should you hire a contract accountant? 

You will face a number of challenges in growing your business whether it’s an early stage or later on.

You are going to need a business plan and for that, you need exact numbers on your accounts to come up with one. That does not mean you will need to hire an accountant for a long period of time when you can just hire them on a retainer.

If you think you are a small company and don’t need to hire an accountant look at it this way.

If you do your taxes and it takes you 10 hours to do it. Now if you were to pay yourself 100 pounds an hour that takes too much off the working hours giving you and your business a loss while a professionally trained accountant will do it in a few hours saving you time and money while giving a peace of mind that your work is done professionally.

And this will give you the chance and time to focus on the other areas of work that need your expertise.

Helping you with the business plans will be one of the responsibilities of the contract accountant. They will help you formulate business plans with financial projections and other reports. Which makes your business plans more realistic and professional and gives you more chances to succeed.

Hiring a professional contract accountant gives you the edge to have financial knowledge and advice right from the very beginning which saves you a lot of time and money.

Types of companies:

Different businesses have different legal structures which are determined by various factors. Some businesses might be called

• Limited Companies.

• Limited Liability Partnerships.

• Corporations.

Before picking up a business structure for your business you should study and make a considered decision on what structure of company suits you. For instance, you may set it up as a sole trader or sole proprietor working and invoicing under your own name. If this is the case you might be able to upset some of your living expenses against tax.

However, this also means you could be held personally responsible for all business-related obligations. If any debts occur in this type of business you are personally liable for it. And the creditor can come after your personal belongings like your house or any other possessions.

While with a limited liability company structure, this is a bit different. The liability of the business will fall under the business and the assets owned by the company and not on you personally.

Keeping an accountant will help you make such decisions and can explain all the legal business structures that are in your best interests. Our accountants in Wandsworth will work with you on contract bases till you want our services.

Why and when do you need a contract accountant?

Business accounting can become very complex very quickly if you are working on it on your own. If you start losing track and things get too complicated and time taking our accountants will help you get back on track and work for you as your personal contract accountants.

When in a business you need to measure key business metrics. For instance, the ratio of the salaries and other employee payments to the total revenue.

Our accountants in Wandsworth can help you with all this by managing your payrolls and doing your bookkeeping and financial charts when you need to have a look.

Our accountants use cloud-based accounting software through which they can share any financial information whenever it’s needed by you. They maintain tables and charts of the money flow so you can understand your financial position at a glance.

Which allows you to keep track of your financials and keep track of important things like cash flow.

If you look at it this way you need accountants to take care of the financial issues and you need to hire them when:

• Ready to delegate.
• To deal with the government.
• In case you are audited.
• When you apply for a loan or an overdraft.
• When your company is growing.
• Taking over a franchise.
• Buying a new business or selling one.

As you understand it accountants can help you with every step you take for your company’s development from the stage of forming one to the point of dissolving or selling it. This doesn’t mean that you have to hire one you can always use contract-based accountants so you can concentrate on growing your company while we play with the numbers.