When you first started your contracting or freelancing career you may have had the capacity to keep on top of your accounting, but as your career grows and your accounting needs becoming more complex you may find yourself needing an extra hand.
In this blog we look at when that might be and what sort of advice and support you’ll need from your accountant.
How old is your business?
As a new contractor you may have only needed only minimal assistance from an accountant, as your needs weren’t particularly complicated. But as your contracting or freelancing career and needs grow, you’ll benefit from having the specialist advice and support from a contractor accountant who knows the complex needs of contractors. They’ll be able to help you maximise your take home pay, by making the most from your tax allowances whilst staying on the right side of the taxman.
Are you finding it tough to have time for your accounts?
If the answer is ‘yes’ then it’s time to outsource your accounting needs. You’re probably busy looking out for your next contract whilst also completing your current one, and have little time to worry about keeping up to date with the latest tax legislation and how you’re affected.
If you’re busy contracting or freelancing and have little time to give to your accounts, when you finally do get round to them you’re more likely to make a mistake, one which could cost you dearly down the line.
Plus, you probably decided on a career in contracting or freelancing to give you more freedom and a work / life balance, so don’t waste your newfound free time by trying to understand your accounts and let an accountant do the dirty work for you.
Are you a success in business, but a failure in profit?
If business is going really well but by doing your accounts you’re still yet to really see a profit, it’s time to call the professionals in. A specialist contractor accountant will be able to advise you on what sort of salary you can take plus dividends, to ensure your tax liabilities are kept as low as possible (whilst keeping the taxman happy) and how to draw dividends from your company to ‘top up’ your monthly salary.
They’ll also be able to advise you on other areas and where you could be making tax savings. An accountant is a specialist in their field and it’s their job to be able to see where you could be saving money, which the untrained eye would easily miss, so it’s best to leave your accounts in their hands.
Are you expanding rapidly and incurring costs?
As your contracting or freelancing career grows you may look to purchase new equipment, take on training, or even start travelling to client locations, all of which will incur costs to your company. Before making any purchase decisions it’s best to run these past a specialist accountant, to ensure you won’t be left out of pocket. You’ll also need to understand how to account for this when it comes to your self-assessment tax return, something your accountant will be able to assist you with.
Has your contracting or freelancing career got you planning your future?
When it comes to looking towards the future you’ll no doubt have some important decisions to make. What’ll be the best move for your money, is it working as hard as possible for you, and will you achieve your end goals? Pensions, property purchases and wealth management to name but a few options all carry their own unique specialisms, ones which a contractor accountant will be able to point you in the right direction for.
You’ve worked hard to earn your money, now it’s time to make a specialist work hard for you to ensure you achieve what you’ve set out to do.
How Taxevo can help
We look after the complex and demanding needs of both freelancers and contractors every day. From setting up your business and getting the basics ready for your very first contract, to offering you specialist advice and support on specific areas which are unique to your personal and professional needs, our team of expert specialist contractor accountants are here to serve you and your accounts, every step of the way.