Here at Crunch online accounting, we’ve recently talked about how the cost of red tape is affecting businesses. Often this is caused by small business owners bearing the full weight of admin functions rather than getting an expert to perform the relevant processes for them.
Now another report has looked specifically at tax issues and discovered that many limited company contractors and freelancers are unsure of some of their tax paying responsibilities – but is this really surprising? People running their own small enterprises aren’t likely to be expert accountants, so why should they?
It’s for this reason that most limited company owners require the services of a good accountant. Instead of being costly, expert accountancy advice should actually pay for itself.
If you don’t believe us, read what consultant Steve Hearsum says about how Crunch helped him save money.
The report by the Institute of Directors (IoD) has revealed that:
* 19 percent of business owners are confused about Corporation Tax.
* 15 percent find employee taxes a cause for worry.
* Ten percent find VAT rules confusing.
There are two possible reasons why the directors of limited companies might be baffled by their accounting requirements. The first is that many people look after their accounts themselves ( DIY accountants!); the second is that you may be employing the services of an accountant who doesn’t communicate your accounting requirements clearly and effectively.
The second scenario is extremely frustrating for small business owners because the whole point of employing an accountant should be to take away the confusion and consternation of running a business. A good accountant makes the whole process of paying taxes and filing returns easy and stress-free. That’s the service you should be paying for – and you shouldn’t be left in the dark.
An online accountancy service like Crunch ensures that freelancers, contractors and small business owners are never left unsure about their accounting requirements. By giving every customer on-tap accountancy advice and online accounting software, we ensure that no deadlines are missed and that every process is explained in easy-to-follow language.
This is exactly how a accountancy service should be. In the 21st Century there’s no excuse for accounting to remain a mysterious dark art where limited company owners cross their fingers and hope their accountant knows what they’re doing.
To read the full report by the IoD, click this link.