Self-Employed Accountant

Do You Need a Self-Employed Accountant?

Table of Contents

Do You Need a Self-Employed Accountant? 

Starting out as a freelancer or contractor can be intimidating, and there are numerous factors to consider, including whether to hire an accountant to handle your tax obligations and other financial issues. As you probably already know, outsourcing has a lot of benefits and drawbacks, but should your tax and financial matters be one of them?

Let’s take a closer look.

Limited Company vs. Sole Trader

You have no legal obligation to hire an accountant if you work as a sole trader. You may believe you don’t need one if your business is relatively straightforward, and you keep track of your invoicing, receipts, and have a good idea of the expenses you can claim. The amount of work – and financial knowledge and expertise that calls for – is a big shock to some. A shock that quickly sends them on a hunt for a good self-employed accountant.

Contractors, on the other hand, have more complicated tax obligations. As a result, most contractors who work through their own limited company choose to outsource this aspect of business ownership to a trusted accountant, even though it is not required. The legal hassles – and potential financial hits bad accounting can result in are often just not worth the risk.

What Can a Self Employed Accountant Offer That Software Can’t?

When you decide to go it alone, either as a sole trader or a limited company, you’ll see 1,001 ads and articles about finance software that would be perfect for your needs. Run your business on QuickBooks! Sounds great, as many of these softwares are pretty cheap, but the reality is that they are just that, software, and they come with a pretty steep learning curve much of the time too.

So should you invest in the services of a self-employed accountant? We think in many cases the answer is yes, and not just because, as self-employed accounting experts, we are biased, but because doing so offers all the following benefits (and more)

Qualified Tax Experts, You Need Them

Tax is complicated at the best of times, whether it’s VAT, income tax, IR35, or corporation tax. To ensure compliance, you must have a thorough understanding of complex tax legislation and stay current on any reforms that are implemented. It goes without saying that this takes a lot of time.

Self-employed accountants are experts in their field and can not only advise you on a wide range of tax issues, but also provide you with peace of mind when it comes to filing your tax returns. To put it another way, they’ll keep their ear to the ground, know the rules inside and out, and can handle everything on your behalf. Because nothing spoils the joy of self-employment faster than a nasty letter from HMRC.

Proper Financial Planning

If you want to expand your business, make investments, buy a house, or start putting money aside for retirement, an accountant can help you with both personal and business matters.

They can recommend money-saving strategies, connect you with mortgage experts, and assist you with other aspects of wealth management.

Time Savings

Bringing on an accountant to save time is likely to be cost-effective. It will free you up so you can focus on your work – work for which you are compensated and which will cover your accountancy fees. You can spend more time doing what you do best, whether it’s coding, developing, marketing, or engineering, by hiring a specialist self-employed accountant.

The bottom line is that you’re always learning as a self-employed person. In addition to making sure your business stays on track financially, it’s always good to have a helping hand to refer to when you’re learning something new. A good accountant can be that.

Need an accountant to help you navigate the sometimes choppy financial waters of self-employment? Pearl Lemon Accountants can be that helping hand we just mentioned. Contact us today to learn more.