Believe it or not, there's more than one kind of accountant out there. Most people think that the word "accountant" refers to a very specific job role - but that couldn't be further from the truth. Different types of accountants London specialise in different businesses and different areas of business. In this article we're going to look at the three main types of accountant out there and the different roles and functions that they offer.
Some companies employ the services of management accountants. These people often sit high up within businesses and organisations; they offer advice on things from a cost point of view. Management accountants are often involved in lots of business decisions - as the guardians of an organisation's budget; they often have the final say on whether certain plans are implemented or axed.
Often management accountants are employed by a firm and don't work on a freelance or third party basis. Unless you're running a large business, the advantages of hiring a management accountant are probably not enough to merit you doing so.
Tax accountants will typically deal with individuals and businesses - they will deal with those difficult to decipher tax return forms for you saving you an awful lot of stress. Tax accountants often take care of things like corporation tax, value added tax (VAT), and also National Insurance bills both for employers and employees.
If you want to make sure your business is meeting all tax liabilities it's important to employ the services of a specialist tax accountant so that they can take care of it all for you. Different tax accountants London charge different prices - if you have a large work force and your business is VAT registered be prepared to pay a lot more than a sole trader turning over less than £77,000 per year.
A forensic accountant is basically someone who's sent in to find out "the truth" about something. If a company is suspected of not paying their taxes properly, a forensic accountant may be sent in to establish exactly what is going on within the business. HMRC often conduct VAT investigations and audits - so sometimes businesses bring in a forensic accountant through choice in order to establish whether or not their books are all in order.
Most people will never need to consider hiring the services of hiring forensic accountants London, it tends to be bigger companies that employ the use of forensic accountants when they're expecting a VAT investigation or some other external tax audit. Audit accountants work in a very similar manner to forensic accountants.
While some accountants London will bring all of these different practices under one roof - others will only offer certain components of accounting, such as forensic accounting work. Before you go pledging your business to an accountant make sure they actually complete the type of accounting work that you require. There's no point asking a forensic accountant to take care of your annual tax returns or quarterly VAT returns.
Most small businesses will only ever need to employ the services of a tax accountant. Whilst tax accountants won't offer extended services like management accountants do, they only charge a fraction of the price, making it a much more cost effective solution. In order to ensure that you get the best possible deal when you sign up with an accountant it's important that you shop around to see what different companies are offering. Sometimes it pays to hire a freelance accountant as opposed to an accountant running a large firm with lots of overheads to cover.