When it comes to managing finances, many business owners are unsure whether to seek the expertise of accountants or tax advisors in London. Though they both offer customised financial services, the decision to engage one, the other, or both depends on your distinct financial needs. It’s essential to grasp the differences between these two types of professionals so you can make an informed choice. Here are five key distinctions:
1. Role and qualifications
Accountants are skilled financial experts who analyse financial statements to assess the financial health of a company, individual, or organisation. There are chartered and certified accountants, each having different qualifications. In London, chartered accountants receive their credentials from the ICAEW after passing exams and accumulating over 450 hours of relevant work experience.
Tax advisors in London, on the other hand, specialise in the field of taxation. To earn this designation, they undertake additional studies and acquire qualifications from the Chartered Institute of Taxation.
2. Scope of responsibilities
While accountants primarily focus on maintaining a business’s books and financial accounts, chartered accountants with tax qualifications can also serve as tax advisors. They stay abreast of current tax regulations and help businesses develop strategies to reduce their tax liabilities.
3. Annual account preparation and reporting
An accountant can prepare annual financial reports that are essential for gauging your business’s future profitability. In contrast, tax advisors in London offer the benefit of ensuring that your financial records are accurate and reliable. This reduces the risk of an HMRC investigation and helps you pay only the minimum tax required.
4. Expertise in tax reduction
Accountants can organise your financial information, enabling you to identify lawful ways to lower your taxes. Tax advisors in London, however, specialise in customising tax-reduction strategies to help you minimise your tax bills effectively.
5. VAT planning and consultation
Navigating VAT can be complex and may result in businesses either overpaying or underpaying. Tax advisors are trained to offer advice and planning services related to VAT, helping businesses avoid costly errors and penalties.
Why not get the best of both worlds?
At Allenby Accountants, we have chartered accountants who can also serve as your tax advisors in London. We offer comprehensive financial services, from accurate bookkeeping to specialised tax advice. Our goal is to provide tailored business advice and support to help you achieve your business objectives. For more information, get a quote or call 0208 914 8887 for a free, no-obligation consultation.