Don’t let tax terms ruin your business dream

A friend once told me she studied accounting because she loves business. Since accounting is “the language” of business, she chose to learn it herself rather than relying on someone else to interpret it.

I’ve met many people who dream of starting a business. But the moment tax or legal terms come up, they hesitate. The truth is, you don’t need to study accounting for years to run a business. As Robert Kiyosaki wrote in Rich Dad Poor Dad, you don’t have to be the best at everything, you just need to know how to work with those who are.

Use the service that fits

You could hire an in-house accountant, but that’s costly and often unnecessary for small businesses. A more practical option is to use an accountancy firm. They handle all tax matters on your behalf at a much lower cost.

Communicate in detail

Business owners usually know every detail of how their business works. But when it comes to tax rules, they can feel lost in the complexity. Accountants, on the other hand, understand the tax system well, but they don’t automatically know how your business operates daily.

Every business is different. Your accountant needs to understand those differences to give the right advice.

I’ve helped clients save thousands by asking the right questions and recommending better strategies such as choosing the right structure or making full use of available reliefs and allowances. That’s only possible when business owners share the full picture.

Understand enough to stay in control

Using an accountant doesn’t mean staying in the dark. Ask questions. Learn the basics. Understand your reports. Check what has been claimed.

If your business spent £10,000 on supplies but only £5,000 was recorded because some invoices were missing, you’ll end up paying more tax than necessary.

I always welcome questions like “Can you explain it?”. Because no one is born knowing how all this works. I had to go through years of studying to understand it, so I could explain it clearly to others. Your curiosity helps you grow and helps your accountant give you the best advice.

Remember, your accountant acts on your behalf, but the final responsibility is still yours.