Five FAQs About Contractor Accountants
Are you looking forward to forming a new company and do not know where to start? Do you want to avoid the much paperwork and concentrate on running your new business? If you are looking for a specialist to handle your company formation process, then you have come to the right place. Many new entrepreneurs are often overwhelmed by the rigorous process involved in the formation of limited companies without engaging the services of independent accountants.
The contractor accountants >> are involved in every stage involved in the formation of new companies. They enable the entrepreneur to have ample time to concentrate more on his core business leading to improved productivity. But not all entrepreneurs who understand how these contractors operate. This article will provide information about five FAQs about Contractor accountants that every entrepreneur needs to know.
FAQs concerning contractor accountants
What is the difference between employed accountants and Contractor accountants?
Based on the ability to control their earnings directly employed accountants do not have a say on how much they can earn because they rely on a monthly salary. Contractor accountants can influence how much they earn on a certain project by putting more efforts. Secondly based on the schedule which they work, employed accountants have 8-5 work schedule while contractor accountants work based on the complexity of the project
What are the services offered by contractor accountants?
Just like the employed accountants, contractor accountants are involved in several duties which include:
- Registration of Start-up companies
- Setting up bank accounts for the new business
- Carrying out all the taxation duties e.g. PAYE
- Planning and advising on the companys dividends
What do retained earnings mean in the business?
Sometimes it becomes important for a business to calculate its total expenditure and compare it with the income of the business to determine its viability. The difference between incomes and expenses is referred to as retained earnings. Retained earnings are like the profit or the gain of the business. The earnings can be reinvested in the business, or the owners can decide to share amongst themselves. To make such a decision you need to involve the services of a contractor accountant who will advise on the best way of using such earnings.
How can I be able to know a genuine contractor accountant?
All registered contractor accountants must have an operating license which enables them to offer their services within a certain region.