Let us start off by saying that not everybody needs an accountant and there are many business owners who are perfectly happy managing their tax returns, bookkeeping and annual accounts themselves. If, however, you are reading this because you are toying with the idea of getting a professional to take care of these jobs, this blog is intended to help you work out if it is worth it for you to hire an accountant.
The reasons why Network Marketers decide to work with an accountant to manage their tax affairs and accounts are usually one of the below, or a combination:
- It doesn’t play to their strengths: Not everyone enjoys dealing with the financial affairs of their business. Quite often, Network Marketers start their business because of the lifestyle it affords them, and because they “fell into” it. Typically, those parts of the business that are more admin or finance heavy tend to be put off and go to the bottom of the to do list.
- They worry about not being aware of all their tax obligations: Legislation changes and it takes time and effort to get clued up about requirements, deadlines and the nuances of how the rules apply to Network Marketing businesses. Many who start a business in this sector have limited experience in running a business.
- They don’t have the time: Many Network Marketers juggle their business with other commitments and want to put their efforts into growing their teams and customer base. Working with an accountant who can take these responsibilities off them actually frees up their time to spend on other commitments – be that their Network Marketing business, other employment or family.
So how much does it actually cost?
The answer does of course depend on a few factors, but let’s look at a typical example:
Aimee Young runs an Avon business as a sole trader and has an annual turnover of £1,500. She has opted for our PRBookkeeping Helpline Service at £345 per year which includes use of specialist bookkeeping software.
In her first year of trading, Aimee incurred expenses of £4,250 and therefore made a loss of £2,750.
Aimee also has a full-time job which provides a salary of £20,000 which means that she pays tax at 20%.
It is likely that if it wasn’t for the involvement of a specialist Network Marketing accountant, Aimee would have missed out on knowing what expenses to claim in her Network Marketing business and what to do with the loss of £2,750. With our help, she is able to claim a tax refund of £550.
This example is intended to illustrate how we typically help Network Marketers and add value to their business. However, it is worth noting that each business’s requirements and situations are different and that the above should not be taken as advice.
We offer a range of packages dependent on the size of your business which you can view here. If you’re unsure which package is most suitable, or you have further questions, please contact our team on 01444 458252 or info@prbmp.com.