Running a business often means wearing every hat — from Marketing to admin to accounts. It’s tempting to think you can save money by handling your own bookkeeping and Tax Returns. But is that really the best use of your time?
Quick Summary:
- An Accountant does far more than bookkeeping.
- They ensure your annual accounts are compliant and filed correctly.
- Self-assessment tax returns become complex when you claim expenses.
- VAT returns, payroll, and real-time reports save you time and stress.
- A good Accountant helps you plan ahead — not just tick boxes.
🎥 Watch: Not sure if you need an Accountant? In this video, I explain when DIY accounting is fine — and when professional help saves you time, money, and stress.
One of the common responses I get from business owners is “Why do I need an Accountant? It’s just basic bookkeeping, and I can do that.”
Well, for a start, even bookkeeping needs to be done correctly, and the consequences of getting it wrong can be more costly to fix, whether in money or in your valuable time, than paying an Expert in the first place. But an Accountant does so much more than that.
Preparing Your Annual Accounts
If you’re a Limited company, it’s a legal obligation to file annual accounts — and they have to be done correctly. Statutory annual accounts consist of far more than just sticking the numbers into an Excel spreadsheet. They have to be not only accurate but also follow specific guidelines.
It takes time and expertise to prepare proper annual accounts. Even if you have the expertise (and most business owners don’t) it’s unlikely that you can spare the time from your busy schedule of growing your business. Hiring an Accountant to do this will give you back that valuable time, as well as ensuring that everything’s as it should be.
Filing Your Self-Assessment Tax Return
If you’re a Sole Trader, or else if you’re a Director of your company who gets income that isn’t covered by PAYE, you’ll need to file an annual Self-Assessment Tax Return — and this is set to become quarterly over the next few years.
While at the most basic level this isn’t too complex, it’s time consuming. More seriously, though, you also need to know what you can and can’t claim — and that isn’t always obvious. This guide explains how business expenses should be treated properly: A Guide to Allowable Expenses for Small Businesses.
A good Accountant will be able to find entirely legitimate claims you might not have suspected, and you could end up saving considerably more than the Accountant’s fee.
Many issues arise from assumptions about what HMRC will accept or require. This explains how HMRC approaches these situations and why it matters: Why You Shouldn’t Make Assumptions with HMRC
Keeping Up to Date With VAT
If your business is VAT registered, your VAT returns need to be submitted promptly at the interval you’ve chosen on registering (monthly, quarterly or annually). VAT can quickly become complex, especially as your business grows. This guide explains how VAT works and when it makes sense to register: VAT Made Easy – Your Fun Guide to VAT
Your Accountant will be able to take all this off your hands, maintaining records and presenting you with final figures long before your reporting deadline. In addition, they’ll be able to advise you in real time on how much money you need to put aside to ensure you can pay your VAT bill.
Managing Your Payroll
Many business owners prefer to remain as solopreneurs simply due to the headache of managing payroll. This is understandable, but it risks stunting your business’s growth.
An Accountant will make all the calculations of salaries and the various stoppages (PAYE, National Insurance, pension payments etc.) and submit the mandatory Payroll reports to HMRC on time. And you’ll have satisfied employees who are paid correctly and on time and will be motivated to help you grow your business.
Knowing Your Accounts in Real Time
Accounts aren’t just for the benefit of HMRC or Companies House. Keeping abreast of your accounts in real time can be an extremely powerful tool for planning ahead. A good Accountant will provide you with regular reports, so that you have the information you need.
Further reading:
- A Guide to Allowable Expenses for Small Businesses
- VAT Made Easy – Your Fun Guide to VAT
- What is Making Tax Digital and How Will It Affect You?
Need professional support?
If you’re unsure whether you need an accountant — or want to make sure your business is set up and managed correctly from a tax and compliance perspective — you can book a Paid Tax & Property Diagnostic Call.
On the call, we will:
- Understand your setup at a high level
- Identify any risks or gaps
- Confirm the most appropriate next steps