Purple Accounts Warrington FAQs
What does an accountant do?
An accountant is a professional who provides financial advice, planning, and management services to individuals, businesses, and organisations. They are responsible for preparing financial statements, managing budgets, tracking expenses, and ensuring compliance with tax and financial regulations.
What qualifications should an accountant have?
To become an accountant, you typically need a bachelor's degree in accounting, finance, or a related field, although most accountants pursue professional certifications such as the Chartered Institute of Management Accountants (CIMA) or ACCA.
How much does it cost to hire an accountant?
The cost of hiring an accountant can vary depending on factors such as their experience, location, and the services you require. Some accountants charge by the hour, while others may charge a fixed fee for specific services. It's best to choose an accountant that looks at your individual needs and what your business requires. A fixed fee accountancy package is best as help to budget for your fees. Bear in mind as your business grows you will naturally increase bookkeeping requirements and perhaps need to change business structure. Your accountant will advise you on this.
How often should I speak to my accountant?
The frequency of meetings with your accountant can depend on your specific financial situation and business needs. Many businesses consult with their accountant on a quarterly or annual basis to review financial statements and tax filings, but some may require more frequent meetings. Those businesses who use an outsourced FD service or have management accounts will have a much more hands on accountant.
How do I choose the right accountant for my business?
To choose the right accountant for your business, consider factors such as their qualifications, experience, services offered, fees and communication style. It's also important to read reviews and ask for referrals from other business owners in your industry.
What are the benefits of hiring an accountant for my business?
Some of the benefits of hiring an accountant for your business include improved financial management, compliance with tax and financial regulations, reduced risk of errors and penalties and the ability to make more informed financial decisions.
How can an accountant help me save money on taxes?
An accountant can help you save money on taxes by identifying deductions and credits that you may be eligible for, ensuring compliance with tax regulations, and providing strategic tax planning advice.
What is the difference between an accountant and a bookkeeper?
While both accountants and bookkeepers deal with financial records and transactions, there are some key differences between the two roles. Accountants typically have more advanced education and training and may provide higher-level financial management and planning services, while bookkeepers typically focus on recording and organising financial data. An accountancy practice that specialises in small businesses should deliver both in one package.
Can an accountant help me with financial planning?
Yes, many accountants offer financial planning services, including retirement planning, investment advice and budgeting. Even better are accountants who also help with business funding and business growth.
What are some common mistakes small businesses make with their accounting?
Some common accounting mistakes made by small businesses include failing to keep accurate records, mixing personal and business finances, and failing to plan for tax payments. Read more about common mistakes small businesses make here.
What are the tax implications of running a business?
Running a business can have significant tax implications, including obligations to pay income tax, payroll taxes, and VAT. It's important to work with an accountant to ensure compliance with tax regulations and minimise tax liability.
How can I keep my accounting records organised?
To keep accounting records organised, it's important to establish a consistent system for tracking and recording financial transactions, such as using accounting software or hiring an accountant that includes the bookkeeping in your monthly accountancy package.
What is the best accounting software for small businesses?
There are many accounting software options available for small businesses, including Xero, Quickbooks and FreshBooks. The best accounting software for your business will depend on your specific needs and budget, plus which your accountant uses and is proficient in. Look for an accountant with accreditation such as Xero Gold Champion Partner.
Can an accountant help me with payroll and HR management?
Yes, an accountant should be able to offer a reliable payroll service as well as auto enrollment and advice on employing staff - especially for the first time.
Do I need an Accountant?
Around eighty percent of businesses fail within the first 18 months. One of the main reasons is lack of financial management and getting a grip on cash flow. Many of these businesses would have more chance of surviving and indeed thriving if they had access to an expert, trusted accountant.
Hiring an accountant to look after your business finances should be seen as adding value, saving you money and not a cost. We wouldn’t have a go at plumbing, or cut our own hair, so trying to ‘DIY’ could make a big difference to the financial health of your small business. Plus think about..
Hours spent each month
Hours lost growing your business
Time lost with family and friends
Or paying someone to correct errors
Missing all claimable expenses
Sifting through paper piles
A fixed fee accountancy package should include everything you need and nothing that you don't.
Here's our top 5 reasons you need an accountant
Should I be a limited company or sole trader?
This a really common question for small business owners and we will be able to advise when you join, which structure will be best for you. On an ongoing basis we will review if being a sole trader is right for you or being a limited company.
I hate bookkeeping! Do I need to do the bookkeeping or input data?
Never! We do all this for you as part of your monthly fixed fee. Who wants to be inputting on a weekend or after a full day? Plus you might miss something, or not claim for everything you are entitled to. Every penny counts.
Then as if by magic your financial information appears in XERO. Access is included free of charge with most packages. We can show you round to get started - it will help you get a grip on your cashflow.
What is an authorised agent?
As authorised agents, we act on your behalf, dealing with HMRC and Companies House for your company. Makes it much easier for you.
Can you help with VAT registration?
Yes of course. If your business exceeds the VAT threshold, you are legally required to register for VAT. In some cases it can be beneficial to register for VAT before your turnover reaches the threshold. We will always advise when you join us as a customer.
How easy is it to switch to Purple Accounts?
Switching to Purple Accounts from another accountant is easy peasy.
We will help you with the switching process, including contacting your previous accountant and arranging for the transfer of records, plus notifying HMRC and Companies House of the change - all part of the service.
Read more about switching accountant here
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