As a creative entrepreneur, you’re at the forefront of technology. Paper records are becoming a thing of the past and even keeping financial details on your computer is slowly becoming obsolete. With everyone connected through just a tap on their phone and cloud-based accounting software becoming the standard, we do have to ask the question: Who would be the best accountant for creative business assistance?
There are several different kinds of accountants that you can use to benefit your business, but before you can decide on what the desired accountant for your creative business is, you first need to know what type of business you run.
There are three categories your company could fall into; Large, Small, or Micro-entities. If you’re running a Large company then you should already have an accountant, so the chances are the business you’re running is either a Small or Micro-entity. Here’s how to determine which is which:
Has any two of the following:
- A turnover of £10.2 Million or less.
- £5.1 Million or less on its balance sheet.
- 50 employees or less.
Has any two of the following:
- A turnover of £632,000 or less.
- £316,000 or less on its balance sheet.
- 10 employees or less.
You can find out more information on business categories here, but all you need to understand is that the smaller your business is, the fewer accounting responsibilities you have. However you will still have responsibilities and you will need an accountant to help you through filing your taxes.
Now that you know what your company is recognised as, you can better decide which is the best kind of accountant for your creative business.
This is your stereotypical high-roller accountant, and to put it simply, unless you’re running a Large company then you’re very unlikely to need one. Feel free to skip on to the next section.
Large companies are required to provide more information as part of their tax return, as well as other necessities such as stock auditing. A chartered accountant can handle these complicated requirements and assist all-year-round with your accounting needs.
The downside? They’re extremely expensive. You’ll be looking at upwards of £100 an hour just to talk to your accountant. This is why they’re not often a viable option for Small Companies and Micro-entities. As a creative, do you really want to spend £££’s to wait for an accountant who could only fit you in to his schedule between his morning golf rally and taking his Mercedes to get waxed?
High-street Chain Accountants
A high-street chain accountant is the Tesco value version of a chartered accountant; there isn’t any glamour, but they’ll get the job done. As you can imagine, this is significantly cheaper than a chartered accountant, which is good for Small Companies and Micro-entities.
But again, there is a problem. Tax and accounting is a 24/7 job, whereas a high-street accountant closes at 5pm sharp. You’re still going to have to book time off to visit your accountant which takes away from time you could be working on your business.
Being a creative, you’re working all hours of the day; from the crack of dawn to twilight. Can you really sacrifice hours out of your day to travel and see your accountant?
An online accountant is the other cheap option and ideal to Small Companies and Micro-entities. Every company has unique needs, and with an online accountant you can choose and tailor a package to your liking which suits your business needs. Most online accountants will provide a quote for their services, but that’s not the only benefit.
Your taxes and accounts don’t sleep, but neither does the online accounting service. You’ll be provided with cloud-based accounting software which will allow you to update your accounts, claim expenses and send off invoices, all from your smartphone or tablet!
Not only that, but the human element is still available. You can always call up your online accountant service if you have any questions, or, if it’s outside of office hours, you can leave a ticket on the Online Ticket System. Your query will be received by the accountant and you’ll be contacted once the problem is solved!
If you’ve been keeping up with the latest tax news, you’ll know the government is planning to make tax digital. Whether you’re for or against this, having your accounts on a cloud-based accounting software will mean that IF this change comes, you won’t have to do a thing.
Cloud-based accounting software is the new, modern way of doing your accounting. You’ll no longer have to deal with thousands of receipts cluttering your bottom drawer or keeping multiple spreadsheets for different accounts. Just add your details to your mobile app and you’ll be ready to sort your finances on the go!
For more information call 0800 0460 560