Do You Need an Accountant Even if You Are Using Xero?
Accounting software is great. It offers many functions that give your business the competitive edge you need to grow. However, there are times when it might not be enough. There are many reasons accountants have a key role in the business, even beyond tax season.
Below are some reasons you should always hire an accountant for payroll, even if you’re using Xero for everything else.
Company Payroll
When you set up a company, you need to register it as an employer with Her Majesty’s Revenue and Customs (HRMC). In order to do this, you should employ at least two individuals as staff.
Your accountant will guide you through setting up your HMRC account, filling out the forms and ensuring you fulfil your duties as an employer.
Your accountant can also help you with recruitment and payroll for your employees. When you outsource your payroll to the accountants’ Office, you get all the advantages of an experienced payroll team.
Tax Codes
The most common task to be completed with accountants is tax returns, and tax codes are a vital part of the process.
Every employer should have a set of tax codes to pull information from HMRC and Xero. If you don’t have a set, you need to get one from your accountant.
Having tax codes for your employees helps in the payroll process. The tax codes are part of the HMRC employee records and are used to build an employee record in your payroll software.
The tax codes also give your employees a record of their tax records, so you can quickly and easily process payroll, so they can be paid faster.
Real-Time Information
Xero is a powerful software that gives you real-time information about the business. It gives you information about your sales, staffing numbers, the company structure and much more. Xero does much more than give you an overview of your company.
However, most accountants will tell you that there are some limitations with Xero. It is a good idea to hire an accountant to help you with payroll because not all the information you require is available on Xero.
When you employ an accountant, they can help you with tax returns and much more. They can also assist you in getting a clear picture of your business at any time.
Real-time information is vital to any company. Having an accountant alongside you allows you to receive the data you need when you need it. It lets you make decisions based on facts and not just guesses.
Outstanding Payments
The aim of a business is to make money, but the reality is that not all the money can be collected at once. You need to be able to manage your money when it is due.
This is where your accountant can help you in several ways. They will be able to take care of all outstanding payments, enabling you to collect on time.
They can also help you by helping you to develop a payment schedule in case there are any issues with payments. As an employer, you need to keep track of all payment schedules.
Accountant & Xero = An Excellent Combination
Accounting software such as Xero is a powerful tool. However, there are several limitations to its use. You need to hire an accountant to make sure that you can make decisions based on facts and not just assumptions. The advice of an accountant can be invaluable for your business, as they are more than just accountants. They are experts who can steer you in the right direction, enabling you to make the most of the software.
BarrettStacey Accounting is one of the reputable accountancy firms in Bristol. We are an approachable team of accountants and bookkeepers. Get started with us today!