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Offshore contractors are perhaps underappreciated but their work is essential to meet the UK’s energy demands and ensure that we have long-term energy security. Simple things that we take for granted such as boiling the kettle, watching a film or heating our homes wouldn’t be possible without the work offshore contractors do.
The offshore industry as a whole is facing some challenges with geopolitical unrest, fluctuation of oil prices and ever-tightening environmental regulations impacting the sector. The push to reduce carbon emissions and achieve net zero is also an existential threat to oil and gas, but fossil fuels will be an essential part of the energy mix for decades to come.
But the shift towards sustainability presents new opportunities for offshore contractors to work on offshore wind projects. It’s likely that the high demand for skilled contractors will remain high.
What are the Main Challenges for Offshore Contractors?
The nature of offshore contracting work presents a fairly unique set of challenges that onshore contractors don’t have to deal with. Offshore contractors will spend a significant amount of time working away on rigs or ships, a lot of travel is involved and the work can be very demanding, often in harsh environments with long hours which makes managing your business finances difficult.
Cash Flow Management and Income Volatility
Demand can fluctuate in the offshore industry and the same challenge is inherent with project work. The security of a monthly salary isn’t there and despite the offshore sector being very financially rewarding, pragmatic cash flow management is essential to ensure that you can meet your business and personal financial obligations even through lean periods.
Accurate Record-Keeping
The nature of offshore contracting makes it difficult to ensure accurate bookkeeping. Significant amounts of travel, not having an office and not having much time to devote to this can mean bookkeeping suffers and this can cause errors and omissions in tax returns that can result in costly penalties from HMRC.
Meeting Your Tax Obligations
When you’re self-employed the responsibility for making sure you are tax compliant sits with you. This is a challenge that all self-employed people face, but it can be particularly onerous for offshore contractors when they have to do their own bookkeeping, complete and file their tax returns and ensure accuracy and timeliness in their submissions. Tax regulations also change frequently which amplifies the difficulty.
How can Accountants for Offshore Contractors Help?
The unusual working circumstances of offshore contractors present a unique set of challenges, especially from the perspective of managing your business finances. By appointing an expert accountant for offshore contractors you can ease the pressure and get your business into the best possible financial health.
Tax Compliance Ensured
One of the main roles of an accountant is to ensure tax compliance and appointing one will give you peace of mind that you will meet your tax obligations and not incur any fines or penalties. In addition, they will get your business operating as tax-efficiently as possible to maximise your take home pay.
Expert Cash Flow Management
An accountant can help you navigate the challenge of income volatility by implementing a cash flow management strategy that will make sure that your business can cover its costs through periods of lower income ensuring that it’s financially stable over time.
Support When You Need It
Working offshore can make things difficult if you need help from your accountant. But with online accountants such as ourselves, your own dedicated accountant will always be easy to contact through direct dial, email or video call. A same working day response to your queries is also guaranteed so you will always get the answers you need quickly.
They Save You Time
Putting the financial management of your business into the hands of an accountant significantly reduces the administrative burden that you face and eases the pressure enabling you to focus on your work and your business, or spending more time doing things you enjoy when you’re back onshore.
Offshore Contractor Accounting with Gorilla
Appointing an accountant that are experts at working with offshore contractors means that you’ll receive the best financial advice tailored to your unique circumstances and the offshore sector.
We understand the complexities of accounting for offshore contractors and with Gorilla, all your business and personal accounting needs will be expertly managed by your own dedicated accountant. You receive full access to FreeAgent cloud accounting software which removes the geographical barrier of working offshore,
FreeAgent allows you to keep on top of your bookkeeping on the go using the app, comprehensive automation removes the admin burden and your accountant at Gorilla will also have full access to your accounts.
If you’d like to learn more about our accounting service for offshore contractors, request a callback at your convenience or call 0330 024 0406 to speak to an accountant.
