Fixed fee accountancy brings affordability and accessibility to accounting services, but many businesses may be unaware of the true benefits.
For SMEs, sole traders, freelancers and contractors, having the support of an accountancy service may not be at the top of their business priorities.
The conventional route many take is to treat accountancy as a once a year service, when it comes to their end of year accounts and tax bill.
However, this underestimates the potential that a dedicated accounting service can offer a business in terms of helping it grow and develop.
It may be that this idea seems too out of reach, or just too costly, to be a realistic aspiration.
But fixed fee accountancy can make it a viable and attractive option.
The One-stop Accountancy Solution
The traditional way you would engage the services of an accountant would be on a job by job basis.
Therefore, you would pay for your end of year accounts and tax return, for example. Anything on top of this, at other times of the year, would generate an additional expense.
This has helped shape people’s views on how they would expect to use an accountant.
Basically, it has led to a very constrained approach, where people restrict what they use accountants for to the bare minimum.
This is failing to take advantages of the benefits such a service can offer, going beyond annual accounts and tax returns.
Fixed term accountancy is different.
Here, you pay an agreed monthly fee, and then your accountant is always on hand to offer advice, guidance and support.
It comes with no hidden extras, but with a resource tailored to suit your business’s needs.
Why is fixed term accountancy important?
For two main reasons:
- If your business is starting out, you should put the fundamental financial infrastructure in place to help you run it and make it ready for growth. Having an accountant’s services from the outset can make your business much better prepared for the future.
- As your business grows, you are likely to bear a greater administrative burden when it comes to your finances. Plus, if you take on staff, for example, there may be aspects of your accounting you had not previously considered. Growth may also mean completing VAT tax returns or a Director’s tax return, alongside running payroll services.
Having someone you trust to advise you on these matters can be both helpful and reassuring if you are entering the unfamiliar financial territory.
How Fixed Fee Accountancy Can Help You
There are immediate benefits that fixed fee accountancy can offer businesses.
Firstly, you can save time. You are likely to be spending a lot of time generating business and then making sure you can fulfil that work and keep your customers happy and satisfied.
But what about all the other stuff, keeping an eye on what you are earning, and your cash flow and invoices.
There are different rules, regulations and tax laws to consider.
Having an accountant on hand to explain all this stuff can prove invaluable in saving you time and worry about ensuring you are properly compliant and your accounts are in order.
You may think you are paying the correct amount, but are you sure. An accountant can provide in-depth knowledge of how you can be at your most tax-efficient.
This could come down to whether you would be better off as a limited company or a sole trader; and what the best way will be for you to take you money out.
There will be things you can and cannot claim, and maybe certain advantages if you become VAT-registered.
Without expert advice and insight to draw on, there is the risk that you will end up incurring tax penalties and fines for non-compliance.
Keeping on top of paperwork can be tricky, and the late payment of taxes can be costly.
Your accountant will ensure that you are not in danger of missing crucial deadlines, and will be thoroughly up to date with your tax submissions.
Tax can also be complex, and many people do not have the appetite to wade through them in the hope that they will get everything right.
Instead, by opting for expert help, you will not need to worry about your tax affairs.
Finally, there is your business development to think about. An accountant can offer the kind of advice to help your business grow. And if you are paying for fixed fee accountancy, this expert advice will come as a standard part of the package.
How Fixed Fee Accountancy Builds Trust
If your accountant can offer you more, becoming your trusted advisor, then this can have a lasting, positive impact on your business.
Having a close relationship with your accountant means that you build a powerful sense of trust, knowing that they are on hand to offer you the best advice they can.
Fixed fee accountancy enables this aspect of accountancy services to become something businesses of all sizes can easily access.
Having professional accounting advice at the heart of your business can help drive good decision-making and lay the right foundations for firm growth.
The closer your accountant is, the more they can understand your issues and pain points in depth, and advise you of the solutions most appropriate to your business model and your goals and objectives.
Your fixed fee accountancy service will:
- Ask you the right questions, to get to the root cause of any issues you have
- Ensure you always have a clear, two-way conversation with them
- Identify your issues and problems accurately and incisively
- Develop a clear view of your financial arrangements and data, upon which they can make informed decisions.