5 Reasons You Should Use Experts In Contractor Accounting
Setting up in business as an independent contractor makes sense in many ways and whether you are starting a new business from scratch or re-packaging an existing project, it can have very attractive tax and other financial advantages. However, the situation regarding your financial status will not be as simple as it was when you were an employee or self employed and so it is absolutely vital that you use a firm used to contractor accounting to look after your books.
Contractor accountancy has become more important in recent years and especially since the introduction of what has become known as IR35, a ruling which has a lot of bearing on the tax status of contractors and which is a minefield for the unwary. It is much better left to experts who know all the pitfalls associated with accounting for contractors and if you come to us for advice, we will make sure that you are kept up to date with accounts and also with all new legislation that might affect you as a contractor.
1. You may not realise it but new legislation and regulations are coming online all the time. One such is the fine levied from now on if a mistake is made, however inadvertent, in any paperwork. By using contractor accountancy, you can avoid this as you wonâ€™t have to fill in forms yourself.
2. Late filing also carries a heavy penalty and it is easy to feel overwhelmed by the paperwork, especially when you are working hard to establish a new business. There is only so much that one person can do, so it is far more sensible to pass on these worries to someone who is experienced in the job and will have no problem meeting difficult deadlines.
3. VAT can be a real headache for the contractor doing their own accounts. VAT accounts are difficult to do and a mistake can be very costly. Not only that, but the decision to opt in to paying VAT is not necessarily a simple one to come to â€“ an expert in accounting for contractors can help you decide whether the time for being VAT-registered has come for your consultancy.
4. Having a fixed monthly fee is so much easier when you are running a contractor business. It means that there is no horrible shock at the end of the year when the accountantâ€™s bill comes in and you can budget. Spread over the year, the fee is very easy to manage and this method of billing is standard for most contractor accountants.
5. The most important reason is that you are giving yourself the unique gift of time â€“ time to carry on with your business, without having half your mind worrying about money or paperwork building up back in the office. Work-life balance is very important for your health and employing a firm such as ours makes this vital element so much easier to achieve.
Call us today or request a call back by completing our online form and claim you FREE no obligation consultation with a fully qualified and experienced contractorâ€™s accountant.