Chartered Accountants

Nowadays running a successful business requires the proprietors to be aware of the business environment where they operate. Generally, you need to be informed about finance, audit, taxation and as well as business practices. That is where chartered accountants come in. Whether you have a large or small business, it is important to employ full accounting and bookkeeping services Birmingham.


Who is a chartered accountant?

A chartered accountant, abbreviated as CA, refers to a professional who holds the requisite certifications to audit financial statements, file business returns and to provide advisory services to their clients. In fact, chartered accountants were the first professional accountants to form a professional body in Britain in the year 1954. To become a recognized CA, candidates must complete a degree in the areas of business finance and accounting. They must also pass a program in accounting methods. A career in chartered accountancy opens many doors to a wide range of opportunities in the finance and business sector.


What is the role of a chartered accountant?

Today, CAs operate in a multitude of business environments namely financial accounting and reporting, audit and assurance, applied finance and management accounting as well as taxation. In reality, most chartered accountants will specialize in one line of service. There are those who handle an entire company's accounting needs while some will work as freelancers overseeing accounting matters for numerous clients. Apart from auditing accounts, they also offer trustworthy financial advice on numerous issues that affect businesses such as corporate finance, bankruptcy and business recovery.


Why should you hire a CA?

Chartered accountants are usually well informed about business practices and laws that govern business environments. Even for small businesses, hiring a CA will save you a lot of money especially where taxes are involved. These professionals also have the ability to analyze and interpret impending business problems and develop dynamic solutions.


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Tax

Tax issues arise in almost every aspect of running a business venture. From corporate tax to sales tax not forgetting value added tax. Nowadays filing of tax is a very critical issue. A CA will not only assist you in filing your returns but they also advise business proprietors on how to take advantage of deductions and tax credit.


Why tax compliance is necessary.

Firstly, filing accurate returns and filing them on time saves you the ordeal of having to deal with the unforgiving taxman. Default or late remittance attracts a heavy penalty that entails paying both the accrued tax with interest. It is in your best interest to avoid, at all costs, coming under the tax official's scrutiny. Secondly, tax return documents will come in handy when you are applying for a business loan. Entities that have a poor tax record may find it difficult to access borrowed funds and even when they do, the terms of the loan are usually unfavourable.

Finally, practices such as poor record keeping, late remittance, tax evasion, underpaying estimate taxes and relying on unqualified professionals will prove costly to your business. However, you can avoid all these mistakes by engaging in proper bookkeeping and working with qualified chartered accountants.