Self-employment can offer many life-changing benefits but it also has its fair share of challenges. Whether you’re investing in your own business or just trying to make ends meet as a freelancer- financial issues are often at the forefront. Therefore, anyway in which you can reduce costs and save money is paramount. Whether you’re a single sole-trader or the owner of a large limited company- an effective way in which to improve your financial outlook is by employing the help of a trained accountant.
Experience
One of the most valuable contributions that an accountant can bring to the table is their experience. An experienced accountant will have worked with many different self-employed individuals and company owners. They, therefore, have a wealth of knowledge on the potential pitfalls of self-employment and can guide you accordingly. They’ll also know the best way in which to approach business growth and therefore profit and success. All of this experience can be vital in saving valuable time, effort and resources when you’re just starting out.
Taxes
A major difference between employment and self-employment is how you pay your taxes. Self-assessment can be a daunting task, especially when you’re not accustomed to it. The process involves a fair amount of bookkeeping and there are various deadlines and potential fines to be aware of. Not to mention the complex and often arduous task of calculating any expenses. It’s for this reason why many self-employed individuals will work with an accountant, who will take on the bulk of the work. This not only frees up valuable time, but it also offers peace of mind that your taxes will be paid correctly and on time.
Time
Your time is valuable, especially if you’re a freelancer or the owner of a company. Any time that you invest in the day to day running of a business, e.g. bookkeeping, taxes, deadlines etc, is time that you are losing. Considering how important it is to keep on top of product creation, services, business growth and profit- it goes without saying that time is precious. Working with an accountant will allow you to delegate specific tasks, freeing up time for you to work specifically on the business itself.
Finance
When it comes to business, it pays to be financially savvy. However, not all of us are well versed in this aspect of business and this shouldn’t preclude anyone from running a successful company. Accountants are specifically trained in this area and can, therefore, offer a lifeline to those who would rather focus on the more creative side of the business. This is especially important when you consider financial trends across the business year. An accountant will be able to identify specific patterns in revenue and avoid any potential cliff edges. Adapting to financial changes can mean the difference between success and failure.
Obviously employing an accountant requires an investment but by working with them, the potential savings are often greater than the initial investment. Whether it’s starting your business, growth, financial advice or even just assistance with your taxes, accountants can help in a variety of ways. This doesn’t only free up valuable time, it allows you to avoid various pitfalls such as penalties, fees and financial crashes. The old adage “you have to spend money, to save money” is particularly applicable in this instance.
