For many small business owners, freelancers, and sole traders, the idea of hiring an accountant seems like something reserved for large companies with complex finances. You might be asking yourself, “Am I big enough for an accountant?” The truth is, an accountant isn’t just for big businesses. In fact, working with one early on can save you time, money, and stress—no matter the size of your business.
In this post, we’ll break down when and why you should consider hiring an accountant and how they can help you grow, stay compliant, and make smarter financial decisions.
Do I Need an Accountant for My Small Business?
The short answer? Probably. Whether you’re a sole trader, a property investor, a beauty professional, a creative, or an entertainer, an accountant can help you manage your finances efficiently. Even if your business is small now, the right financial guidance can help you scale faster and avoid costly mistakes.
Leave the complexities of tax behind – let us take care of it for you.
Managing your tax affairs can be time-consuming and intricate. At BM & Co Accountants, we simplify the process, ensuring your finances are in expert hands while you focus on what’s important to you. Get in touch with us today, and experience peace of mind with our accounting and professional tax services.Get in Touch
If any of the following apply to you, it might be time to bring in an accountant:
• You’re spending too much time on bookkeeping.
If keeping track of your income, expenses, and taxes is taking up hours of your week, an accountant can help free up that time so you can focus on running and growing your business.
• You’re not sure about tax compliance.
Tax laws in the UK are constantly evolving, and missing deadlines or making mistakes can lead to fines. An accountant ensures you meet all HMRC requirements, from VAT returns to Corporation Tax and Self Assessment.
• You want to maximise tax efficiency.
An accountant can help you take advantage of tax reliefs, allowances, and deductions that you might not be aware of, ensuring you don’t pay more tax than necessary.
• You’re planning to grow.
If you have aspirations to expand, an accountant can help you structure your business in a way that supports sustainable growth, from choosing the right business entity to securing funding.
• You’re making business decisions based on guesswork.
Financial data should drive your decisions, not gut feelings. Accountants provide insights and reports that help you plan ahead with confidence.
How an Accountant Adds Value to Small Businesses
Still wondering if an accountant is worth it for your small business? Here’s how they can make a difference:
1. Helping You Choose the Right Business Structure
Should you operate as a sole trader, a limited company, or a partnership? Each has different tax implications and responsibilities. An accountant can advise on the best structure for your business goals.
2. Managing Your Cash Flow
Poor cash flow management is one of the biggest reasons small businesses fail. An accountant can help you forecast income and expenses, ensuring you don’t run into cash shortages.
3. Keeping You Compliant
From filing tax returns to preparing annual accounts, accountants ensure you stay on the right side of HMRC regulations, avoiding unnecessary penalties.
4. Making Tax Time Stress-Free
Tax season can be overwhelming, especially if you’re unsure about what you can claim or how to report your income correctly. An accountant takes care of this, so you don’t have to worry.
5. Helping You Get Funding
If you’re applying for a business loan or investment, having well-prepared financial statements and forecasts increases your chances of approval.
6. Freeing Up Your Time
Your time is valuable. Instead of struggling with spreadsheets and tax returns, outsourcing to an accountant lets you focus on your business.
When Should You Hire an Accountant?
While some small business owners wait until they start making significant profits, hiring an accountant early on can actually help you reach that stage faster. Here are some key moments when bringing in an accountant is a smart move:
• Starting a business – To set up the right structure and financial systems from the beginning.
• Hiring employees – To handle payroll, PAYE, and National Insurance contributions.
• Reaching the VAT threshold (£90,000 turnover from April 2024) – To register for and manage VAT returns.
• Planning for growth – To get expert advice on scaling up your business sustainably.
• Facing an HMRC audit – To ensure everything is in order and avoid penalties.
Can You Afford an Accountant?
Many small business owners worry about the cost of hiring an accountant, but the reality is that not having one can be more expensive in the long run. Mistakes, missed tax-saving opportunities, and compliance issues can end up costing you much more than an accountant’s fees.
The good news is that accountancy services can be tailored to your needs and budget. Whether you need occasional tax advice, help with bookkeeping, or full financial management, there’s a service level that suits your business.
Is It Time to Hire an Accountant?
If you’re asking yourself, “Am I big enough for an accountant?” the answer is probably yes. Even if your business is still small, an accountant can provide valuable insights, save you money, and help you grow faster.
By investing in expert financial advice early on, you’ll set your business up for long-term success—without the stress of trying to handle everything on your own.
If you’d like to discuss how an accountant can help your business, get in touch with us today. We specialise in working with property investors, beauty professionals, creatives, and entertainers, offering tailored accounting solutions that fit your needs.
Let’s take your business to the next level—without the financial headaches.