Do I Need an Accountant for My Small Business?
You don't legally have to have one, but that doesn't mean you shouldn't.
If you're running a small business, you might be wondering whether paying an accountant is actually worth it.
The answer depends on your business, how confident you are with your finances, and how much time you have available.
Let's break it down 👇
🧾 Can I do my own accounts?
You don't have to have an accountant to run a small business in the UK.
If you're a sole trader with relatively simple finances, you may be perfectly happy managing things yourself.
You might be fine going it alone if you:
✅ Have a small number of transactions
✅ Don't have employees
✅ Aren't VAT registered
✅ Have straightforward expenses
✅ Understand your bookkeeping software
✅ Have the time to keep your records up to date
But remember: being able to do your accounts yourself doesn't necessarily mean you should.
🚩 When might you need some help?
As your business grows, your finances can become more complicated.
You want to set up a limited company
Limited companies have more advanced filing and reporting responsibilities than sole traders.
You'll need to think about things like:
Corporation Tax • Annual Accounts • Companies House • Payroll • VAT
We would never recommend you set up a company yourself, or complete these accounts yourself, as it can get messy very quickly.
An accountant can help make sure you're meeting your responsibilities, and advise you on how to take money from your company efficiently.
You need to register for VAT
VAT can get complicated very quickly.
Being VAT registered comes with a few more responsibilities than simply adding VAT to your invoices.
There are lots of rules around what VAT you can and can't claim back, and getting your VAT return wrong can be an expensive mistake.
An accountant can help make sure your VAT returns are accurate and submitted on time, while making sure you're claiming everything you're legitimately entitled to.
You need to employ people
Taking on your first employee is a big step for any small business, but it also means more admin and more responsibilities.
You'll need to think about things like:
PAYE • National Insurance • Payroll • Workplace pensions • Payslips • HMRC reporting
Payroll mistakes can be particularly stressful, especially when you're trying to run your business at the same time.
An accountant can take care of the payroll and reporting for you, making sure your employees are paid correctly and everything is submitted to HMRC on time.
Your business is growing
If your business is growing, that's great! 🎉
But as your turnover, profits and number of transactions increase, your finances can become much more complicated.
You might find yourself:
Buying equipment or premises
Dealing with more customers and suppliers
Making larger financial decisions
Paying more tax
An accountant can help you understand what your numbers are actually telling you, plan for tax and make informed decisions about the future of your business.
An accountant isn't just for tax
A good accountant should help you understand your business, not just calculate your tax.
They can help answer questions like:
This is where having someone who understands your numbers can really pay off.
But isn't an accountant expensive?
This is often one of the biggest concerns for small business owners.
Of course, an accountant is an additional business expense. But it's worth considering what you're actually paying for.
You're paying for... | You're potentially getting... |
💷 Accounting fees | ⏰ Time back |
📊 Financial expertise | 💡 Better decisions |
🧾 Tax knowledge | 💰 Potential tax savings |
📅 Deadline management | 😌 Less stress |
📈 Business advice | 🚀 Support as you grow |
And if an accountant saves you more money (or time) than they cost, they can effectively pay for themselves.
So... do you need an accountant for your small business?
Maybe. Maybe not. 🤷
If your business is small and straightforward and you're confident managing your finances yourself, you may be perfectly capable of doing your own accounts.
But if you're spending hours trying to work out what you're supposed to do, worrying about whether you've got something wrong, or simply don't have the time...
An accountant would be worth your while.
And you don't have to wait until your business is "big enough" to get one.
The best time to get an accountant is before things get complicated, not after.
Thinking about getting an accountant? 👋
At Revis & Co, we work with small and growing businesses across Portsmouth and beyond, helping with everything from bookkeeping and VAT to payroll, accounts and tax.
If you'd like to chat about what your business needs, get in touch with the team, even if you're not sure whether you actually need an accountant yet!
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