A lot of individuals have been thinking about starting a business like an accountancy business. Starting a business in UK is easy since the government supports start ups and small businesses. This is why those who may be thinking of starting an accountancy business need not look any further as this article provides information on how to do that.
What does an accountant do?
An accountant who has an accountancy practice or works in one basically does accounting services and other services related to that. These services are usually provided to businesses in the area or country where they are from. These services are also provided to clubs, charities, societies, and even private individuals who need their expertise. There are accountants who do private practice and they have a number of roles they usually do on a daily basis. These include working and preparing any business plans, budget reports, and financial statements for their clients. They also produce accounts and audit accounts. They also manage the spending and costs of their clients and can also forecast profits and performance. Aside from these, accountants also help with filing all tax returns, giving advice on taxes, helping businesses and individuals who may need help because of financial difficulties, as well as doing forensic accounting, investigating financial fraud.
What are the qualifications and legal requirements for accountants?
To start an accounting business, one does not necessarily need to have an accountancy degree. However, it would greatly help to have the theories down pat. Those who may want to get knowledge about the profession can take some vocational courses related to the industry to help them get the knowledge they need to offer accountancy services. A person wanting to start such a business can try the Association of Accounting Technicians whose qualifications are at the minimum to have a generalized career in the industry. Those who do wish to have an entire range of accountancy services can opt to go with the Association of Chartered Certified Accountants. There are other bodies to go to and these include the Institute of Chartered Accountants in England and Wales, the Chartered Institute of Management Accountants, and the Association of International Accountants. An individual or a business that provides accountancy services is required to be registered with a body that supervises the practice. A usual requirement would be a certificate to practice accountancy. The business should also have authorization from the HMRC so a business can do transactions with the HMRC on behalf of the business’ clients. A reference number or agent code is usually provided, which would show the type of authorization given to the agent. Another important requirement would be acknowledgement, understanding, and compliance of regulations and guidelines of the industry, which include regulations on data protection as well as regulations on anti-money laundering.
Is insurance needed?
Even if an accountancy business does its work well, mistakes and even accidents happen. The best way to protect the business would be through getting professional indemnity insurance. This is important for businesses that provide professional advice. It is also important as it covers mistakes including unintentional breaches in confidentiality or copyright, defamation, libel, professional negligence, and loss of data or documents. There are other insurance types that an accounting business may also invest in which include public liability insurance, employers’ liability insurance, and buildings insurance.
What is the best business legal structure?
Choosing a legal structure for the accounting business is something that business owners need to ponder on. One has to think if they would be setting up a limited company, be in a partnership with another party, or go as a sole trader. Most accountancy business owners opt to go with forming a limited company as it is the best structure for this type of business. In any case that a business owner may not know how to proceed with this, getting the services of a formation agent would be a really good suggestion.
Is there a need for a business plan?
While some people think that a business plan would be a good thing, a good number of them create a business plan as they go along. However, it is highly recommended to have a good business plan in place and in black and white to help guide the operations of the small business. It will serve as a tool that helps guide an owner’s decisions as it provides clarity and rules and guidelines on how the business should be run.
What is a good market?
Finding the right market is not an easy task and it should depend on what industries the business would like to cater to. It is important to know where to tap for clients and what services can be offered by the accounting business. Having a good niche is really important thing to decide on as it helps an owner target which would make good clients and which market to enter. By knowing the clients and their profile, business owners can start to create a good plan for marketing their services.
An accountancy business can be a lucrative one though starting a business like this can seem difficult to do. It is a good thing that starting a business in UK is made simpler through the huge amount of resources and available help for those who need assistance.
published under Business Address Guides
