A client who had been with us for over 4 years recently emailed and asked “what was it we exactly did for them”. This came after the client had gone from paying no tax to paying £5k tax in their latest financial year.
I found this fascinating as it dawned on me that some business owners believe that an accountant’s main job role is to just reduce their tax liabilities regardless of business activity.
So, what is our role?
Well, here at TI Accountancy, our main aim is to help our client’s businesses grow!
In the case of the above client, as a result of having bookkeeping and receiving KPI reports monthly, they had identified the areas they needed to cut costs and how they could improve their gross profit margins.
By doing this, not only had they turned their business from loss-making to profitable, but they had also massively improved their cashflow situation and in this financial year had been able to pay themselves a dividend for the first time!
Although we endeavour to make sure you are paying as little tax as possible, by making sure you are claiming for everything you can (expenses, tax reliefs etc.) and by making sure you are on the correct platform (sole trader, limited company etc.) making more profit does mean paying more tax!
We cannot make tax disappear. But we can, through our business growth products, help you to make sure that when it’s time to pay the tax bill you have the funds ready to do so.
So, Would you like to pay more tax and be prepared when it’s due?