Do I really need an accountant?
Do You Really Need an Accountant for your Self-Assessment and Company Accounts?
If you’re self-employed or running a limited company in the UK, you’ve probably wondered at some point whether you need an accountant. With all the DIY tools and online resources available, it’s tempting to handle everything yourself, but is it the best choice?
Let’s break it down.
1. Self-Assessment for the Self-Employed
If you’re self-employed, you’re responsible for completing a self-assessment tax return every year. HMRC provides detailed guidance on how to do this, and there are plenty of software tools that can help you keep track of your income and expenses.
So, do you need an accountant?
Not necessarily. If your finances are straightforward, and you’re confident in your record-keeping and understanding of tax rules, you might manage just fine on your own. However, an accountant can:
• Save you time: Freeing you up to focus on running your business.
• Ensure accuracy: Reducing the risk of mistakes that could lead to fines.
• Maximise deductions: Helping you claim all the expenses and allowances you’re entitled to.
2. Filing Limited Company Accounts and Tax Returns
Running a limited company adds a layer of complexity. You’re required to file annual accounts with Companies House and submit a corporation tax return to HMRC. These tasks require a good understanding of accounting standards and tax law.
Here, using an accountant is highly recommended. An accountant will:
• Ensure compliance: Helping you meet all your statutory obligations and avoid penalties.
• Provide expertise: Offering advice on how to structure your finances for tax efficiency.
• Support growth: Providing insights and financial planning to help your business thrive.
3. Companies that require an audit
In the UK, audits are mandatory for larger companies, but most small businesses are exempt. If your company needs an audit, it will need to be audited by a registered auditor, that is registered with an recognised accountancy body such as ACCA.
The Bottom Line
While you don’t need an accountant for every task, their role in ensuring your financial health is crucial. They help you navigate complex tax laws, stay compliant, and can even help your business grow by providing strategic advice.
For self-employed individuals with simple finances, handling your own self-assessment may be manageable. However, as your business grows or if you run a limited company, the benefits of hiring an accountant far outweigh the cost.
It’s not just about ticking boxes—it’s about making sure your business is financially healthy, compliant, and positioned for growth. An accountant isn’t just for audits—they’re a partner in your business’s success.
If you’re unsure, The Accountant’s Best Friend is here to offer guidance tailored to your needs. Whether you’re just starting out or managing a thriving business, I can help you make the right decision for your circumstances.
Ready to talk numbers? Get in touch with me today to see how I can help your business thrive!
