A breakdown of the services accountants can provide to contractors

Keeping a business running smoothly is no mean feat, particularly if all of the responsibility for it rests on your shoulders.

If you have chosen to work with an umbrella company, administration is not something you need to concern yourself with and you can concentrate on fulfilling your assignment. However, if you decided to go down the limited company route, you have more to worry about than simply doing the work you have been assigned to do.

You have to concern yourself with all the elements that go with running your own business, including filing your tax return, company accounts and other administrative duties.

That does not mean, however, that you need to take care of these issues yourself. Many contractors find the idea of completing tax returns and keeping accurate records both confusing and time-consuming and as a result, they entrust it to those with expert knowledge on the subject.

Accountancy services providers can handle various aspects of running your business and it is important to know exactly what areas they can help you with so you can make an informed decision as to whether to engage their services or not.

The service offered by accountancy services providers can include features such as reminding you of important deadlines, completing your annual returns, filling in your VAT returns, arranging the relevant payments and making sure corporation tax is paid.

Another important service that accountants can provide for you is a review of your contracts and working practices and providing advice with regards to IR35 compliance.

One of the most tedious parts of running a limited company for many contractors is book keeping and maintaining accurate company accounts. For those who struggle with figures, this can be a time-consuming and frustrating part of running a limited company.

By entrusting it to an accountant, you can get peace of mind that your books will be in order and concentrate on what you do best.

Accountancy services providers can also guide you through the process of actually setting up your limited company.

There are various steps you need to take and forms you need to fill out to start your own company and any mistakes or lack of information could delay the whole registration process, which could end up costing you money.

Instead of doing this yourself, you can entrust it to experts who know exactly what information needs to be supplied, how the forms need to be filled in and other areas of the registration process.

Many accountancy services providers will provide all of the above services or provide a tailored package to suit your needs, so you can often choose which services you want.
Engaging such organisations will cost you money but it is important to consider the benefits of using them.

Every minute you spend calculating your tax returns is time you could be spending making money and the longer it takes you to complete your administration, the more it will cost you.

You therefore need to look at it in terms of efficiency and value for money.

Many contractors engage the services of accountancy services providers to ensure everything is above board. The convenience and peace of mind knowing that the most laborious part of their job is being advised on makes it a worthwhile investment for a lot of contractors in the UK.

Article in cooperation with paystream.co.uk