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Ask most sole traders and they’ll tell you they prefer focusing on the job at hand, rather than running the numbers, working out expenses and calculating (not to mention filing and paying) tax. Does this resonate at all?
Regardless, lots of small business owners – from tradespeople to designers, shop owners and more – juggle both their day job along with their tax and accounting responsibilities. Again, you’re in this boat, hats off to you.
Much of this, we imagine, comes down to the fact that some sole traders see engaging an accountant as a luxury, not a necessity – in other words, an overhead that can be spared.
And in truth, you don’t have to engage an accountant. Not legally speaking. However, there are plenty of reasons why seeking the support of a trusted expert is worth its weight in gold, both for you personally and for your business.
1. You’re looking to grow.
There are only 24 hours in the day – hours that need to be spent wisely if you’re looking to win more work and grow. One area of the business that can be outsourced to a specialist – as you look to claw back time to spend on making money – is accounting. What’s more, it also happens to be one of the most complex yet critical functions, which is why for many sole traders, engaging a qualified accountant is a total no-brainer.
2. Numbers aren’t your forte.
A challenging aspect of self-employment is being responsible for (and feeling like you should be good at) everything – whether it’s providing your services, business development, keeping clients happy, and, you guessed, tax and finances.
The reality is, for many sole traders, numbers aren’t their forte. You might be a fantastic plumber. An inspiring writer. A genius designer. But understanding the ins and outs of the tax system? Managing your expenses whilst ensuring you're operating compliantly? It’s not for everyone. And if it’s not for you, engaging an accountant might be the smartest business decision you ever make.
3. The tax system is evolving (rapidly).
At the best of times, tax is complex. These days the tax system is changing so quickly that keeping pace with it and in turn, ensuring your compliance, is challenging. This is where accountants more than prove their worth.
From being an expert on relevant taxes, to helping you prepare for and abide by upcoming reforms, the right accountant will provide you with up-to-date knowledge and support. Put simply, it means you have one less thing to worry about.
4. You want to save money.
The right accountant can help save you money. Whether it’s by reviewing your business overheads and highlighting unnecessary costs, or making sure you know how to maximise legitimate business expenses to reduce your personal tax bill, the potential benefits that can be made through smart accounting are likely to be far greater than the cost of these services.
5. A friendly expert on hand.
Having a qualified professional at the end of the phone as and when you need them to provide accurate advice, dispel myths, and even settle your nerves is invaluable – regardless of whether you’re just starting out or have decades of experience.
While some accountants may charge for this privilege, with Caroola, you’ll be assigned an Account Manager who you can email and call as often as you like as part of the cost of your monthly package.
So there you have it, just a handful of the many reasons why sole trader accountants are worth their weight in gold. If you have any questions, or are looking for some friendly and trusted accounting advice, don’t hesitate to contact us.