When Does It Make Sense To Hire An Accountant?
The DIY Mindset
A lot of people start out thinking they’ll save money by doing their own accounts and at the very beginning, when things are simple, that can sometimes make sense.
A few invoices, a straightforward tax return and maybe a bit of bookkeeping on the side are easy enough to manage internally.
However as a business grows so do the moving parts and before long the time you’re spending trying to stay on top of HMRC rules is time you’re not spending focusing on the thing that you do great that got you into business and actually makes you money.
The Key Trigger Points
Here are some of the most common points where bringing in an accountant starts to pay for itself:
- Going Limited
Incorporating into a limited company from a sole trader changes everything, now you have corporation tax, payroll, dividends and directors responsibilities, it’s much more than just a form on Companies House.
- Hiring Staff
The moment you put someone on payroll you’re looking at PAYE, pensions, holiday pay and HMRC filings, an accountant takes the headache away so you can focus on running the team.
- VAT Threshold
If your turnover creeps towards £90,000 VAT registration isn’t optional, deciding when and how to register and whether there’s a smarter scheme for your industry is where an accountant can save you cash and stress.
VAT is a service in itself and we're here to help.
- Complex Expenses or Multiple Income Streams
Landlord income, overseas clients, CIS or just a mix of side hustles, the rules aren’t always obvious and HMRC don’t take ‘I didn’t know’ as an excuse.
- Wanting More Than Just Compliance
An accountant isn’t just there to tick boxes and file forms, good ones (like us) give you management accounts, forecasts and advice that helps you plan for the future instead of looking backwards at what already happened.
The Cost vs Value Question
Yes an accountant is an extra expense but in practice most of our clients find they:
- Save money through proper tax planning
- Save time by automating record keeping
- Gain peace of mind knowing HMRC won’t come knocking
- Have better information to make decisions that actually grow their business
That’s value that goes well beyond just filling in a tax return.
Final Thoughts
There’s no single right time to hire an accouant but the trust is that if you’re spending more time worrying about your books than running your business you’ve already hit that point.
Still not sure if you’re there yet? Feel free to get in touch we’ll talk it through, no jargon and no pressure.
We’ll take care of the numbers so you can focus on what you do best.
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