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Should Sole Traders Outsource Their Accounting?

By December 15, 2017April 17th, 2018Blogs

As a sole trader, you can often get by without an accountant. However, if you really want your business to grow successfully, accountants could benefit you massively. There are a lot of aspects of your business you may not have time to monitor but with an accountant, this would never be a problem for any sole trader.

Coleman & Co can provide a wide range of accounting services to all sole traders in the Lisburn area. With our support your business can always flourish without you having to complete all the work.

Personal Accounting

As a sole trader, the reason for doing your own accounting can often be due to the control you have over your own finances. By outsourcing to our accountants, we will continue to offer a personal service and monitor finances with you having full knowledge of the accountancy services we provide to you. You will still have the same control but without having to invest as much time into your finances.

There are also many more services that professional accountants can offer to you. Using the correct software and systems to manage your finances, you have complete accuracy with every service we provide as well as more detail into every aspect of your business. Although you could do this yourself, it would be extremely time consuming to create all the financial details we offer.

Recording Details

Keeping track of every financial detail within your business is a big task but something that you must complete. Without recording all your business transactions, you cannot calculate tax properly or provide any evidence of the money you have made and spent over the course of a year. These are all things you should keep information of.

When submitting taxes to the HMRC, you must keep these records for 5 years after the 31st January submission deadline in the relevant tax year. If you fail to do this and the HMRC decide to investigate your business, you will have no proof of submitting the correct amount of money based on what you have made.

You can submit your returns with provisional or estimated figures if you have lost information. However, having an accountant will ensure bookkeeping is completed effectively and the details you need are always available.

Updating Accounts Regularly

Sole traders may not have a lot of time to work on their business as well as regularly monitor finances. Accountants give you the opportunity to have someone dedicate themselves to controlling your finances. This allows you to get the best financial results for your business.

Using the best computerised systems, we have the ability to complete detailed checks on your finances on a regular basis, allowing us to notify you of any unordinary transactions or movements in finances. This can also prevent you from making any mistakes that could massively impact a small business.

Whether this is the taxation of your own products and the income you are bringing in or planning the future of your business through budgeting and forecasting, mistakes can always be made. Using accountants guarantees you of accurate reports and monitoring of your finances.

Filing Your Tax Returns

Even as a small business owner, filing your tax returns correctly is essential. If you fail to do this correctly, then you and your business could face punishment through fines and penalties. Although it’s not something anyone enjoys, you do have to pay taxes. Accountants can make sure this is always done on time and accurately.

Using specialist tax software allows accountants to calculate tax simply and with complete accuracy. Accountants also stay updated with all new tax laws and developments. These are changes that you may not think about if you submitted taxes on your own. Taxes will always be submitted on time when your tax deadline approaches. This will leave you with no worries and complete peace of mind over tax returns.

This could help you save money in the long run. Although you are using an accountant, you will always avoid fines from the HMRC.

Contact Us

If you require accounting services as a sole trader, Coleman & Co are always happy to provide a range of services to monitor your finances. Contact our team today on 028 9266 3599 for more information on our services and advice in the Lisburn area.

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