Tax. It may be a small word, but it causes untold headaches and worries for many small business owners. Trying to get by without any assistance from experts is foolhardy and difficult. Throw in three additional letters – VAT – and things can become more complex still.
If you are just starting out in business, it is a great time to hire an accountant with a deep understanding of the VAT system and how it works. Here are three reasons why you should consider following this route.
1: Your VAT registration will be done properly and at the right time
VAT returns must be done every three months. Sometimes, it appears you’ve only just completed one when the next one falls due. If you run a hectic business, you may struggle to find the time to learn everything you need to know to ensure your VAT registration is done properly. Handing it over to an accountant means you can be sure the whole thing will be done to the letter and on time.
2: You won’t need to worry about finding the time to do the paperwork
You still need to keep accurate business records, of course. Yet being able to hand over the VAT returns and associated reporting to your accountant will take a lot of the weight off your shoulders. If you keep business records using a software system, chances are you can grant access to it via the internet for your accountant. They will then get the figures they need from there.
3: It will free up far more time for you to spend on other areas of your business
This is probably the biggest advantage of hiring an accountant to handle your VAT affairs for you. They can also handle your tax returns each year, meaning there is even less to worry about. If you’re naturally a worrier, trying to work your way through the complex tax laws surrounding VAT and other issues doesn’t help you stay relaxed. It will take you far longer than the average accountant to cover everything, and you don’t even know whether you will manage to learn everything you need to know anyway. The chance of mistakes is far greater when you handle everything yourself.
Time is a precious commodity. Yes, you will pay fees to get an accountant to handle your VAT for you. However, many people find those fees are more than worth it to free up more time to work on their business – something your accountant cannot do for you.
And of course, there is free time as well. If you have spent evenings at home trying to wrap your head around VAT, this could be the best way to change things for the better. Your business might thank you for it.