Accountancy is boring, right? And the only reason self assessments and limited company accounts exist is to tell you how much tax to pay right?
Your accountant is a business tool.
Your self assessment is a business tool.
Your limited company accounts are also a business tool.
Many people look upon these things as an expense, and something that just tells them how much tax they have to pay.
But the truth is, these are all invaluable business tools! – you just have to know how to look at them and how to use the information they portray.
Your accountant, provided they provide you with a fixed fee, is a mine of knowledge and experience. They have been in business for however long, serving people like you, seeing what works, and what doesn’t, according to each industry. They know of ways to reduce your try starting a new limited company tax that you may have not even heard of before; your accountant is a tool! – but a useful one!
Your self assessment and limited company accounts are also fantastic tools, depending on whether you are a sole trader or limited company.
Included in your limited company accounts or self assessment is every income & expenditure of the last financial year.
If you spend an hour or so analysing your last set of limited company accounts compared to previous years, you can see a ‘trend’ of what is happening in your business.
Perhaps, as an example, the cost of sending letters to your clients has risen over the past few years to a level which is costing the company a lot of money. You can see this clearly in your accounts, where you may have had to stumble across it in the day to day running of your business.
You could also notice that a particular product/service hasn’t been performing as well the past financial year compared to previously. You can then tie this in with your own reports to find a solution.
Your accountant will also take a look through your limited company accounts whilst they are preparing them, keeping an eye out for any areas in which they could save you more tax, as well as advising on ideas you come up with, so be sure to remember how useful your accountant can be!