There are often misconceptions regarding accountants and the support they can provide to improve the performance of a business. To help, we explore a number of common myths and aim to shed some light on the truth.
Myth: I only need to think about my accounts in tax season
To stay on top of your finances, you need to perform accounting functions throughout the year to ensure your business is performing at its best. Regular bookkeeping allows you to keep on top of your financial position at all times and give you a clear picture on performance. By doing this, you can benefit from growth opportunities, forecast accurately for future trends and be prepared in advance for any risks you may be facing.
Myth: Accountants only prepare accounts
This is possibly one of the most common myths we come across, when in fact, accountants can offer a wide range of services along with the more traditional matters such as bookkeeping. At PM+M we have a team of experts who work seamlessly together, offering specialist advice on financial audits, payroll, cloud accounting, financial planning, personal and business tax, and corporate finance. Accountants can also help to lighten the mental load and offer emotional support in times of financial difficulty.
Myth: Small businesses don’t need accountants
Every business, no matter the size, needs to ensure they are following compliance rules and accountants are there to support individuals and their businesses with this. Keeping track of deadlines and navigating tax can become overwhelming and result in costly mistakes so it can be invaluable to have an expert supporting you with the financial considerations for your business.
Myth: A limited company must register for VAT
A common misconception, but no, limited companies do not need to be VAT registered. When a company’s turnover for the previous 12 months exceeds the current VAT threshold level (currently £90,000), then it must register for VAT. A company must also register for VAT if turnover is expected to exceed the threshold within the next 30 days alone.
Myth: A business forecast only needs to be reviewed at the beginning of the year
Regularly reviewing projected results for accuracies and variations can help plan for potential barriers to success by identifying resources needed in the near future and aid financial decision making. Forecasting helps business owners become pro-active to financial opportunities, rather than re-active to adversities.
Myth: A non-trading company does not need to submit annual filings
It is a legal requirement for all limited companies to deliver annual accounts and confirmation statements to Companies House each year, even if they are not trading (dormant). A company may be ‘dormant’ if it’s not doing business and doesn’t have any other income, for example investments.
Get in touch
For further information or advice on how we can help you to save money, reduce risk, manage growth and plan ahead to improve the performance of your business, please get in touch with a member of the team by emailing enquiries@pmm.co.uk or calling 01254 679131.
