Setting up your own business comes with risks and challenges, and as your business grows, so the demands on you, as a business owner grow too.
One of these demands is tax. Tax has a considerable impact on small businesses.
This is because, due to size, many SMEs must manage their taxation and accountancy paperwork with limited resources.
And the current tax regime in the UK is not always the easiest to understand. There are complexities that can be demanding on time and resources, and which can mount as your business develops.
Don’t Underestimate Your Importance, or Your Tax Burden
SMEs are very much the engine room of the UK economy. They account for over 99% of the business population, and provide over half the turnover of the private sector.
They are major employers too, accounting for around three fifths of the workforce.
But as an SME, you also face an administrative tax burden. This can include:
- Corporation tax
- VAT
- Business Rates
- National Insurance
- Income tax.
What you pay will also depend on your status, whether you’re a sole trader, a partnership, or a limited company.
Also, if you have employees, you’ll have PAYE to manage.
All these things add up, and all have their own rules, regulations and exceptions.
How much of this do you need to tackle on your own?
One of the key traits of successful small and medium-sized businesses is knowing when to outsource, and who to outsource to.
This is about making the most of available resources and support, and understanding that having your own limitations isn’t a weakness.
How Tax Accountants Help SME’s
Outsourcing your accountancy to a specialist brings a range of benefits with it. Small business accountants help your business in more ways than just looking after your tax.
- They can help with your workload. Running a business is demanding, but it’s less demanding if you know your tax and accounting affairs are in a safe pair of hands.
- An accountant can help improve your cash flow. This is something that is vital to both startups and growing enterprises. If your business lacks sufficient cash, then it is short of the lifeblood it needs to thrive. Your accountant will help your cash management, ensuring you have what you need for your short-term and long-term plans.
- They provide valuable business advice, acting as an expert business adviser, helping you stay ahead of trends, and regulations and measuring your performance accurately.
- Your accountant helps you become more efficient, including the support of leading-edge cloud accountancy software, offering scalable solutions that can grow alongside your business.
It’s About More than Taxes
Expert accountancy is a valuable business resource, which can help to keep your enterprise on track with its taxes, but also support your growth, business development and prosperity through consultancy services such as management accounting, or helping SME’s and tech startup businesses claim tax relief such as R&D credits or EIS/SEIS tax relief.
Give Venn Accounts on 020 8088 2590, email enquiries@vennaccounts.com or fill in our contact form, and we’ll be in touch as soon as possible.
