accounting firms

In what situations might you need a chartered accountant?

There are situations where calling in a professional is better than going it alone. Dealing with your finances is one of those situations.

While your personal fortune or your company may not be big enough to sustain a full-time chartered accountant, there are accounting firms – both large and small – that you can consult with on an ongoing basis. Working with the same accountant year after year provides a sense of continuity. They will better understand your financial situation, budget, life events, and goals.

A chartered accountant provides a wide variety of services, from setting up and registering a company for you, to completing tax returns. In the event that the tax bureau requests an audit of your business or personal income, a chartered accountant will help you sort through your paperwork and provide the authorities with a concise report that can help eliminate the stress and chaos you would otherwise face.

As your business grows, you might need a chartered accountant to assist with budgeting and financial projections. Your accountant can run the reports and work the numbers to show you what percentage of profits should be reinvested for maximum growth. A corporation will bring in an accountant during mergers and acquisitions, not only to forecast budgets and revenue, but to advise of any tax issues that may arise from the deal.

Should your personal or corporate profits exceed what the taxman feels is acceptable, your chartered accountant can set up shelters, trusts, and even a philanthropic foundation where you can do some good while saving on taxes.

Keep in mind that not for profit organizations and charities are very closely scrutinized by Her Majesty’s Revenue & Customs, which means your accountant will be keeping very detailed logs of every penny in- and out-going. He or she will conduct periodic internal audits to insure that there is no room for fraud, close any financial security gaps, and do a dry-run for HM Revenue.

There is another situation in which you would need a charted accountant, and that’s insolvency. No one wants to face losing it all, but the statistics show that over 50% of British small and medium businesses will fail. An insolvency practitioner will first try to save the business or individual from the brink. If that is not possible, they will begin by selling assets, collecting money owed to the insolvent person or company, and making financial agreements with creditors.

From start to finish, it is comforting and prudent to have a good chartered accounting firm walking beside you to help you navigate the often rocky path to financial freedom.

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