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The online self-assessment filing deadline is fast approaching and many taxpayers will be facing the annual scramble at the end of January, but it doesn’t have to be that way.
There’s no hiding the fact that managing your finances and tax obligations as well as running your own small business is a challenge, and this is part of the reason why engaging an accountant can be so valuable.
With the support and guidance of an accountant, you can build good habits and one habit can make a huge difference to avoid the filing day stress – that is to check-in with your accountant regularly rather than just at tax-time. Small businesses benefit the most from this as swings in cash flow can hit them harder and mistakes or bad decisions can create bigger financial issues.
This simple habit doesn’t cost anything extra, it doesn’t take lots of your time and it can make filing your tax returns a stress-free experience, as well as preventing problems throughout the year.
The Dangers of Year-End Accounting
Some small business owners might only pick up with their accountant at tax time or if there’s an issue during the year. This will give more time to focus on your work, but a reactive approach can have a significant impact at year-end, with unnoticed or unresolved issues affecting your ability to file your tax return, and it can also negatively impact the financial management of your business.
- Tax Issues
Without regular check-ins, your tax bill might catch you by surprise. Regular contact with your accountant helps you to keep on top of your obligations as well as understanding what your liability will be so you can put funds aside each month to cover it. - You Might Pay More Tax Than You Need To
Leaving things to the year-end makes it harder to accurately track income and expenses, increasing the likelihood of missing out on reliefs or deductions so you pay more tax than you need to. Regular accountant check-ins will ensure that your tax-efficiency is maximised. - Errors and Inaccuracies are More Likely
Trying to piece everything together at year-end massively increases the chances of errors in your tax return, as well filing it late. This leaves you little time to correct any issues all of which puts you at risk of fines and penalties from HMRC, not to mention the associated stress and pressure. - Cash Flow Risk
Only looking at your numbers at year-end means you won’t spot potential cash flow issues in advance. This can put unnecessary financial strain on your business and this reactive approach can leave you short when bills are due as you have less time to prepare or spread costs to help protect liquidity.
Building The Right Habits
A regular check-in with your accountant can be simple. It doesn’t have to be a long formal meeting or even face-to-face. Things can be easily and conveniently handled over a phone call or a Teams call to keep your accountant in the loop so you can discuss your business finances, such as:
- Concerns regarding cash flow
- Your upcoming tax obligations
- Tax-efficiency
- Opportunities and threats
- Upcoming decisions
- Possible purchases
- Your rates
- Changes regarding employees or payroll
These check-ins ensure visibility and transparency with your accountant, ensuring nothing is missed and giving your accountant the information they need to manage your finances and tax obligations as effectively as possible, as well as making it easier for them to provide strategic guidance to help you achieve your business goals.
- Schedule a Recurring Time Slot
Routine is key so agree a check-in time, whether that’s quarterly or monthly. - Update Your Accountant Ahead of Time
Emailing details of what you’d like to discuss ahead of your check-in streamlines the process enabling them to prepare and provide you the best advice. - Ensure Your Records are Up-To-Date
This means your accountant will be able to provide advice based on current and accurate data and you won’t be getting bogged down with queries regarding holes in your bookkeeping. - Don’t Wait if You Have a Query
If you need advice from your accountant, don’t wait until your scheduled check-in. They are there to answer your queries. Questions asked now can prevent much bigger problems in the future.
How Regular Accountant Check-Ins Benefit Your Business
These are the key areas where checking in with your accountant can make a real difference to your overall financial management, stress levels and even your take home pay.
Issues Are Spotted Early
If there are any issues your accountant will pick them up giving time to rectify them before they snowball into a more serious problem.
Complete and Accurate Financial Records
Year-end panic is avoided. Your records will be clean, accurate and complete, preventing any issues downstream.
Maximise Your Tax-Efficiency
Regular check-ins help your accountant to proactively optimise your tax position throughout the year which ultimately increases your take-home..
Plan Ahead for Tax
You get an understanding of what your tax bill will be so you can put funds aside each month to cover it.
Less Risk of Errors and Inaccuracies
Your accountant will ensure everything is complete and accurate making HMRC investigations, fines and penalties much less likely.
You Ensure Compliance
They keep you compliant with all HMRC rules including new legislative changes and making tax digital.
No Missed Deadlines
They will keep you abreast of all deadlines ensuring that you file your returns and pay your bills on time.
Better Business Decisions
You can get regular advice rather than just once per year ensuring that you make better decisions for your business.
Long-Term Strategy
Regular check-ins make it much easier for your accountant to provide strategic guidance to help achieve your business goals.
A Stress-Free Year-End
Keeping on top of things throughout the year with your accountant looped in ensures things go smoothly at year-end.
Accountant Check-Ins Are Part of Our Service
We understand the value and importance of regular accountant check-ins. This is why, as a Gorilla Accounting client, you’ll work with your own dedicated accountant who will be on-hand to provide you with unlimited support, advice and guidance whenever you need it.
We take a proactive approach and quarterly bookkeeping reviews are included as part of our accountancy service so we can make sure your records are in-order and effectively manage your tax affairs and business finances, giving you year-round clarity and structure.
Our client service guarantee means you’ll never be left hanging for a response. Contact us before 3pm and if we don’t respond the same working day, we’ll issue you with a £50 payment.
FreeAgent accounting software is also included at no extra cost, or Xero at a discounted rate, making it easy to manage and understand your business finances. Thanks to collaborative access, your accountant can also access your records helping them to proactively manage your finances year-round.
Get in touch to learn more about our accountancy service or get an instant online quote.
