Why do small businesses need an accountant?

An accountant helps you stay compliant, avoid costly mistakes and spend your time on the business instead of the paperwork. You are not legally required to hire one, but for most small businesses the benefits outweigh the fee.

• Stay legally compliant. VAT, payroll, Corporation Tax, Self Assessment and Companies House filings all have their own deadlines. An accountant makes sure each one is met and filed correctly.
• Avoid errors and penalties. Mistakes on a tax return can lead to HMRC penalties and interest. An accountant checks your figures, applies the right allowances and reduces the risk of errors.
• Save time. Accounting, tax and compliance take hours every month. Handing them over frees you to run or grow the business.
• Claim what you are entitled to. Even a compliance-only accountant will check you are not missing allowable expenses, allowances or reliefs.
• Get peace of mind at year end. Whether you are a sole trader or run a limited company, you know your accounts and returns are submitted correctly and on time.

What if I do my own bookkeeping? That is fine. Many owners keep their own books in software such as Xero, FreeAgent or QuickBooks. An accountant then reviews the figures and handles the year-end accounts, Corporation Tax or Self Assessment. You do the day-to-day, and the accountant makes sure the end result is accurate.

Not sure which structure suits you? Try our sole trader vs limited company calculator, or see our fixed prices.