Chartered Accountants And The Small Business.

Many small business owners ponder over what size their company should be before they employ the services of a Chartered Accountant. With tax authorities becoming more and more predatory, it is essential that the management of a small business seeks proper professional advice. A search for a firm of Chartered Accountants should be made early in the life of the company.

Financial records must be kept in a form that is readily available should there be a VAT inspection or some query from the Inland Revenue. A proper accounting of all financial activities is best carried out by an, at least certified, accountancy practice.

You will find the guidance you receive to be well worth the expenditure. In addition, if there is an emergency, the support given in dealings with banks or tax officers is priceless.

As an example, what follows is a true event in the life of a small business of good standing. The directors had a a nightmare six months that would have been far worse without the support of their accountant.

The directors had sold one of their two properties and placed the funds in a deposit account attached to their personal bank account. They subsequently sold their residence as well and moved into another property, using the funds from the deposit account to refurbish it.

All of this was transparent and above board. Imagine their distress when the Inland Revenue decided they were to be the subjects of a tax inspection. Fortunately, they had employed a good Accountant for some years; in fact, within months of the formation of the company. They were able to largely leave the business side of things to be dealt with by their accountant. They had enough to do dealing with the questioning about their personal banking, loans, credit cards, investments, the list goes on and on. The disruption to their personal and business lives was immense. This was in spite of the fact their accountant was dealing with 90% of the work.

They had moved twice in a two year period and were asked to produce personal documents dating back three years. It was not difficult to recall how a deposit was made in their bank account of