What is an accountant? –
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An accountant is a person who keeps track of people’s money for them.
Accountants are experts in numbers and money.
They take care of finances for people and businesses, making sure that they are following the guidelines set by the government for paying taxes and other laws.
Accountants are an important part of businesses because they help to make sure that everything is running smoothly.
They help avoid mistakes being made by keeping track of of the money moving around in the business. 🕵️♀️
Accountants often help people or businesses with things like:
- working out how much money they’re making
- giving advice on how they can manage their money
- preparing financial statements to explain how their financial situation looks
- making sure that they aren’t overspending money
- Paying the right amount of tax to the government
- sharing ideas on where to keep money, and how to use it
Accountants and self-employment 💼
If you’re looking at being self-employed or are setting up your own business, accountants can be particularly useful to consider.
It takes work to pay your taxes when you’re self-employed.
You usually have to track your spending and income closely, and report it to the government to decide how much tax you need to pay each year.
Usually every year you have to fill out and submit tax forms for the government.
This can sometimes be confusing, resulting in you paying too much or too little tax.
It is important to do research and get professional financial advice to help you to decide whether getting an accountant is suitable for your situation.
On the other hand, if you’re an employee for an organisation/business in the UK- paying your taxes can be less work/effort due to a system called PAYE (pay as you earn).
PAYE means that your employer will calculate the tax that they think that you owe, and send the government your tax payments on your behalf.
You can see how much PAYE tax you’re paying on your payslip from your employer.
Make sure to check your payslips, to make sure that you’re paying the right amount of tax!
Learn more about accountants here!
So that’s it!
Hopefully you’re feeling more confident about understanding what an accountant is.
If you know any friends or family members who might benefit from learning about accountants, share this post with them!
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