When you become a business owner, you have a lot of responsibilities on your shoulders. So, you often get caught up in things. You see things from a d
When you become a business owner, you have a lot of responsibilities on your shoulders. So, you often get caught up in things. You see things from a different light which makes you think everything is right on track. But there is always a possibility you are missing out on certain important things. That is why you need Accountancy Health checks. For that you need to find an accountant first. An accountant is anyway needed to take care of your business and for bookkeeping. Your accountant will help you understand the efficiencies and improvements which you might not be using as your advantage. He can help you save some money. As an accountant works independently of you and your business, whatever he advises it will be in your best interest.
Why Accountancy Health check is important?
Tax is a quite complicated process. It is not always possible to keep track or take the right decision which will save you money by claiming for the right things. For example, if you are someone who works from home, you might not know how much you should claim for the stationary or equipment. Or you might not have been aware of the fact yet that you are eligible to claim for your home you are using as office. Through an Accountancy Healthcheck, you are giving your accountant an option to find out your future plans and help you achieve them. Suppose you are thinking of recruiting employees; your accountant can suggest you the best way of doing so. They can also suggest you measures if they feel you are not paying yourself enough and need to be tax efficient. An accountant is an important part of your business who will help you grow and become money efficient. Accountancy isn’t usually the first thing that springs to mind, particularly if you’re a small business owner. Often wearing multiple hats can become quite stressful when running your own small business, if this is the case, it might be worth checking out small business accounting firms like Venn Accounts
What actually happens in an Accountancy Healthcheck?
There are different kind of support you can get. You even have an option of connecting to an accountant online who can solve your accountancy issues. The best thing about online accountancy has to be the fact that it is accessible anytime which makes the process flexible and easier to work out at any situation. Once you are done with consultation your accountant will prepare a report for you which will have some selected recommendations. It will also be mentioned which recommendation you need to prioritise.
What are the things your accountant will look at during Accountancy Healthcheck?
Generally the following are the things an accountant looks for during an Accountancy Healthcheck:
- The first thing which will be checked is the key accounting ratios like the profit margins, return on capital, liquidity, etc.
- How efficient you are in collecting your income and cleaning your expenses.
- If you have purchased anything major and their taxes.
- The balance of materials in account.
- Your accountant would want to know if you are looking for more directors, shareholders and if you are intending to raise funds for growing your business.
- Your VAT registration details are important to determine if you are on the right scheme and whether you are claiming back what you are entitled to.
- The accountant will let you know if you are using director’s loan account in the right way and if it is liable for any tax.
- The expenses what you are claiming for and also what you can claim for.
- They will guide you in the right way to take advantage after complex expenses you make which you might not have taken into consideration like running a company car are the expenses you bear while working from home.