What does an accountant do?

A lot of contractors we’ve talked to over the last 20 years have told us one of the things that has made their lives easier has been finding an experienced contractor accountant. We’ve even been described as a contractors’ ‘best friend’.

Maybe that’s a little OTT, but we do like to see ourselves as more than someone who processes numbers. We are a valuable source of business advice and guidance.

If you’re new to contracting and are looking for an accountant, before choosing one, it’s a good idea to understand what an accountant does and how their services can benefit you as a contractor.

Accountants are responsible for handling the financial tasks of a running business, such as:

Bookkeeping

Bookkeeping forms a major part of accounting. Bookkeeping focuses on keeping an accurate and complete record of financial transactions. Transactions commonly covered include; invoicing clients for goods or services provided, recording receipts from customers, recording invoices from suppliers and paying suppliers and providing financial reports for the business.

These transactions can be handled through paper records, excel spreadsheets, desktop software or more and more frequently cloud accounting software like FreeAgent or Xero.

Tax returns

An accountant can complete a tax return (Corporation Tax returns and Self Assessment Tax Returns) on your behalf and calculate any tax liability you may owe.

Payroll

If your business has employees, an accountant will ensure that taxes owed in terms of a salary (PAYE) are made in accordance with legislation. Meaning, you avoid any possible fines for mishandling.

VAT Returns

If your company turnover is more than the VAT threshold (£85,000 for 2018/19) you may be required to become VAT registered and complete and submit VAT returns every quarter. Even if you will not exceed the threshold it may make business sense to be VAT registered voluntarily.

An accountant will make sure your returns are handled accurately and are submitted on time.

What else does an accountant do?

Some contractor accountants, like ourselves, also assist in:

Forming a limited company

When you join the SG Accounting family, your limited company will be incorporated by our expert team, at no extra charge. We’ll take care of:

• Registering your company for VAT and PAYE
• Completing the registration process with Companies House
• Setting up a bank account for your business

In our initial face to face tax planning meeting, we’ll discuss the best share structure for your business, ensuring you operate in the most tax efficient manner.

IR35 contract reviews

If you are not familiar with IR35, our article ‘IR35 advice for contractors’ should answer any questions you may have. Even, if you have been contracting for a while we suggest that you take a read of the article to reacquaint yourself with the regulation.

All our packages include IR35 contract reviews. We will review your contract and working practices for IR35 compliance. If we feel that your contract places you inside IR35 we can offer advice on your next steps.

Need a hand?

We have over 20 years’ experience supporting contractors and making life that little bit easier. Whether you are new to contracting or have been doing it for some time, our highly experienced team are on hand to assist you with every contracting milestone. To discuss our range of packages, give us a call on 01962 867550 or send us a message via our website.