The truth behind five business accounting myths

Business accountants support businesses from inception to dissolution and at every point in between, keeping them compliant and helping them maintain a profitable position. Their role is complex and varied, so here we dispel five common business accounting myths.

1. Accountants are only necessary quarterly

Many people think business accountants Bristol only file quarterly tax returns for businesses. But actually, they can aid with financial forecasting and payroll, provide tailored advice, and support businesses in exploiting growth opportunities at any time of the year.

2. Only big businesses need an accountant

Every business, irrespective of its size or annual turnover, could benefit from the advice provided by accountants such as https://www.hazlewoods.co.uk/expertise/business-accountants/bristol/. Outsourcing this function to a dedicated specialist ensures that your business will be fully compliant with all relevant legislation and regulations.

3. Limited companies must be VAT registered

Only businesses that turn over £90,000 or more a year need to register for VAT. However, VAT registration offers other benefits, including the ability to reclaim VAT on purchases like uniforms and equipment.

4. Business forecasting only needs to be done at the start of the year

Forecasts should be regularly reviewed to identify opportunities and eliminate barriers. Reviewing this information only once a year is a serious failing.

5. Non-trading entities need not file accounts

All limited companies must file their annual accounts, even if they are dormant. Only once a company is fully dissolved and struck from the Companies House register may it stop filing accounts. Also, all relevant documents must be held for another 7 years.

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Nina Brown