This article aims to highlight the main differences between accountants for contractors and a traditional accountancy practice.
If you are a contract worker or freelancer operating your own personal limited company, you should really be using an accounting firm that specialises in solutions for contract workers. Here are the reasons why you should consider using accountants for contractors:
1 – Specialists
Accountants for contractors will give you best advice on how to operate your company in the most tax efficient way as a contract worker. You have access to tax saving initiatives such as the FLAT RATE VAT scheme, which you may not be advised about when using a traditional accountancy practice.
2 – Financial Advice
Many accountants for contractors can also provide financial advice on mortgages, pensions and insurance which are specifically designed for contractors and freelancers.
3 – More personable
Generally speaking the service you will receive from accountants for contractors will be more personable than a traditional accountancy practice. It is likely you will be allocated a dedicated Account Manager who you will be able to contact on a regular basis.
4 – Can take the weight off your shoulders
Accountants for Contractors tend to have tailored accounting packages designed specifically for contractors that do not want the burden of administering their bookkeeping, tax affairs and general administration. It is likely that you will not find a package specifically for contractors when using a traditional accountancy practice.
5 – Fixed monthly fee
Contractor accountants should only promote a fixed monthly fee. If you do come across an accountancy firm charging a percentage of your turnover run a mile!
What should your accountants do for you?
Here are some of the accounting features your contractor accountants should offer:
-IR35 contract reviews
-Weekly or monthly payroll for one fee earning director & an additional non fee earning employee
-Quarterly PAYE payment notification
-Quarterly VAT returns
-Annual PAYE returns; including P35s and P11Ds
-Annual Statutory Accounts (Full and abbreviated)
-Annual corporation tax computations and returns
-Annual personal tax return for the director.
-Support for all secretarial matters
-Dealing with all routine correspondence from HMRC and Companies House
-Preparation of all mortgage/tenancy references
-Access to exclusive contractor financial services
-Provision of a comprehensive spreadsheet that provides
-key financial information
-Full book keeping service – simply forward all your company paperwork
-Preparation of quarterly management accounts
-Registered Office Service
-Sales Invoicing – send us a timesheet – we invoice your client
-Preparation of weekly/monthly advice sheets; highlights director payments and available profit
-Professional Indemnity, Employer’s Liability and Public Liability Insurance
I hope this article on accountants for contractors has been helpful and informative.
Accounting & Bookkeeping Group Australia has many specialists to provide tailored services for contractors. Contact us now at 0403595274 or email@example.com to find out.
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