Bookkeeping services for contractors is an ever-growing industry in the UK. Contractors are becoming in demand of such an agency to manage all accounting tasks on their behalf. Contractors might have various needs for accounting services for contractors in London. They may have their accounting departments or work with accountants from accounting firms that provide such services. They may be small businesses or giant corporations.
Streamline the Various Financial Reporting Responsibilities
Numerous accounting firms provide accounting services for contractors across the UK. The accounting firms help streamline the various financial reporting responsibilities of companies and government contractors. Contractors that work with the accounting firms to help them understand the different financial reporting responsibilities of the business. This allows the accounting firms to deliver tailor-made solutions to meet the requirements of the contractor companies.
Choose Accounting Firm carefully.
Choose accounting firms members of the National Association of Securities Dealers (NASD) and the American Institute of Certified Public Accountants (AICPA). These organizations have solid professional branding and maintain strict standards of professionalism and ethics. Look for a Nasdaq listing with a yellow “A” logo. Membership in these organizations indicates their seriousness about accounting and the quality of their service. If a startup accountant you are considering cannot be one of these members, move on to the next one.
Prepare the Accounts Payable and Receivable for a Given Period
Most government and private contractors have accounting services for contractors as a part of their overall business. Contractors help the companies prepare the accounts payable and receivable for a given period. The contractor is responsible for preparing the financial reports, preparing the income statement and the balance sheet. These reports require for tax preparation and audit by the government. Contract accounting services also include tax preparation, audit, and compliance support.
Reports Directly to the Contractors
For small contractors, an accounting firm can act as its internal bookkeeper. In this case, the accounting firm reports directly to the contractors. This might be a more expensive option for small contractors since the independent contractors would require a sizeable salary compared to the hourly rates for the bookkeepers at the accounting firm. However, the contractors are provided with all the accounting reports required by the government.
Growth of your Business
New businesses often struggle with issues of accounting and bookkeeping services. This can lead to delays in receiving payroll and payment, which can seriously affect the growth of your business. For these reasons, new companies should always consult with an experienced and talented bookkeeping services team. They should have an A+ rating with the Better Business Bureau.
Specializes in Financial Planning and Administration
Try to find a firm that specializes in financial planning and administration. Some accountants work solely in accounting, while others work as the company’s CPA and general financial manager. As a startup founder, you want a CPA who will understand how to structure your company’s finances legally. They should have excellent communication skills and provide a wide range of advice on investing in mergers and acquisitions. As your company grows and begins to hire other CPAs, it is essential to maintain excellent relations with the accounting firm you choose.
Cost-Effective for Both the Contractor and the Accounting Firm
Outsourcing bookkeeping services tasks to a third party can be very cost-effective for both the contractor and the accounting firm. An accounting firm can do the accounting work itself, while the company that employs the third party will be paying the independent contractor a fixed salary. This type of job costing is beneficial for both parties since the accounting services for contractors are cheaper than hiring additional full-time bookkeepers. Additionally, the accounting firms will not be required to provide benefits and health insurance to the outsourced employee.
Legal or Tax Professionals
The accountant or bookkeeper employed by the contractor is not usually a legal or tax professional. Contract accounting services need to be conducted according to the principles laid down by the US department of labor. Contractors should make sure that they hire only independent contractors qualified to do accounting work for them. Contract accounting services need to meet their own specific needs and not necessarily the general principles of double-entry bookkeeping.
The accounting services for contractors must comply with all government regulations. Tax planning is another essential requirement for accounting services for contractors. Companies need tax planning to ensure that the tax burden is reduced. The general tax burden is estimated at nearly nine percent in the US, and contractors are expected to carry out their jobs in compliance with this burden. It is important to remember that accounting services for contractors are meant to provide tax planning and should be done according to the standards set by the IRS.
The bookkeeping services for contractors usually include:
- Preparing financial data reports.
- Maintaining records.
- Tracking expenses incurred and financial transactions.
- Preparing tax reports.
A good accounting firm should have the necessary qualifications, experience, and tools to perform these tasks. The economic data should be prepared according to standard practices, and it should be processed accurately to maximize its usefulness. An independent and unbiased firm must perform the job costing analysis. The selection of a qualified and reputable firm is vital for the proper job costing result.