The Financial Mail has reported that one of the more daunting aspects of setting up a new business is tackling issues such as tax, VAT and payroll. Keeping accurate records and filing returns is a legal requirement that can eat into a business owner's time. And if deadlines are missed or mistakes are made, penalties and interest can cost dearly.

Business software providers such as Sage have computerised bookkeeping, accounting and payroll packages designed for small businesses and start-ups, but often it can be more beneficial to pay an accountant to do it.

If you're spending an extra three or four hours a day updating staff records and preparing tax or VAT returns, how much are you really saving by doing it yourself?

HMRC run courses such in PAYE and VAT. They are informative, but also show the tip of just how complex payroll and VAT is. For a small business, payroll can be a minefield.  There is so much red tape that it is no longer just a matter of making the correct tax and National Insurance deductions. There’s also student loan repayments, statutory maternity pay and sick pay and there are penalties for getting it wrong.

Appointing an accountant to do all of this not only saves a new business owner valuable-time allowing them to use their time more effectively in growing the business, it can save money by identify areas where further tax can be saved.

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