What do accountants do?
Accountants help individuals and businesses manage their financial records, tax obligations and reporting requirements. For businesses, this can include preparing annual accounts, filing corporation tax returns, managing VAT, running payroll, keeping bookkeeping records up to date and advising on tax planning.
For individuals, accountants often help with self assessment tax returns, rental income, capital gains tax, inheritance tax planning and personal tax advice. A good accountant does more than submit forms. They help you understand your numbers, avoid mistakes and make better financial decisions.
How much should you pay for an accountant?
The cost of an accountant depends on the type of work involved, how complex your affairs are and how much support you need throughout the year. A simple personal tax return will usually cost much less than a full accountancy package for a limited company that needs annual accounts, corporation tax, VAT returns, payroll and regular advice.
For Shirley sole traders, landlords, company directors and business owners, the most important thing is to understand what is included. A lower headline fee may not cover bookkeeping, VAT, payroll, Companies House filings or advisory time. Always ask for a clear written breakdown before choosing an accountant.
What are the four types of accountants?
The four main types of accountants are usually described as financial accountants, management accountants, tax accountants and auditors.
Financial accountants prepare formal accounts and reports. Management accountants focus on internal figures that help business owners make decisions. Tax accountants advise on tax returns, tax planning and compliance. Auditors review accounts and financial records to check whether they are accurate and properly prepared.
Many accountancy firms support clients across several of these areas, especially where business owners need both compliance and advice.
Can accountants save you money?
Yes, accountants can often save you money, although the exact saving depends on your circumstances. They can help identify allowable expenses, improve tax efficiency, avoid penalties, structure salary and dividends correctly, plan for VAT, manage cash flow and reduce errors that could become costly later.
For businesses in Shirley, good accounting can also highlight where profit is being lost, where costs are increasing and where better systems could save time. The value is not only in reducing tax. It is also in having better information and fewer financial surprises.
Can accountants give financial advice?
Accountants can give advice on tax, business finance, cash flow, profit extraction, company structure and financial planning from an accounting perspective. Some firms, including Jerroms, also have access to wider financial services expertise, which may include financial planning, pensions, investments, mortgages or corporate finance.
Regulated financial advice, such as specific investment or pension recommendations, must be given by someone authorised to provide that advice. Where specialist advice is needed, it is important to work with the right qualified professional.
Can accountants file just from bank statements?
In some simple cases, accountants may be able to prepare accounts or a tax return using bank statements, but it is not ideal as a long-term approach. Bank statements show money coming in and out, but they do not always explain what each transaction relates to, whether VAT has been handled correctly or whether expenses are fully allowable.
Receipts, invoices, payroll records, loan agreements, mileage logs and other supporting documents may still be needed. Good bookkeeping records make the process more accurate, reduce queries and help avoid missed claims or incorrect submissions. For Shirley businesses, cloud accounting software can make this much easier by keeping records organised throughout the year.
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