Many freelancers starting out, often put off getting their own accountant due to the cost, feeling it’s a luxury they simply can't afford. However, by doing this they often set up their businesses poorly, pay too much tax and receive hefty fines for late payments to HM Revenue and Customs.
As well as being a trusted business adviser and somebody to provide advice on your tax affairs, a good accountant will also provide a host of other benefits, such as:
Time saving: Many freelancers charge by the hour or bill clients based on the amount of time they have worked on a project. That means every hour you spend poring over paperwork and tax returns is time that you are not earning.
You want to spend your time where your talents lie, not spending valuable time on sorting out your accounting. Handing over the nitty gritty of your accounts to an expert accountant will save you time that you could be better spent building your business.
Getting things right: Accountants are experts at completing tax forms. They need to be to ensure everything is correctly filed with HMRC. Errors not only cost you time but also could cost you financially due to fines and penalties.
Saving you money on your tax bill: Correctly filling in your tax return isn’t just about completing the boxes correctly. A good accountant will know where you can legally reduce your tax liability which can soon add up and potentially cover the cost of having your own accountant.
Tax regulations and allowances are always changing so unless you want to spend weeks each year keeping up to date it makes sense to appoint an accountant.
As a freelancer, you will also benefit from personal financial advice, as your personal finances are so closely linked to your business income.
General business advice: Experienced accountants have dealt with all kinds of businesses, meaning they are often well placed to give general advice and help in growing your business, as well as dealing with the details of your finances.
When you are starting out, and even if you’ve been in business for years, it always helps to have other people to bounce ideas off and your accountant can give you objective feedback and valuable advice, beyond the financial advice you will get from them. And if you do encounter any issues which they cannot help with, they are sure to have an extensive contacts list of professionals who can.
How to find a good accountant
We’ve been through some of the benefits of appointing an accountant, the next decision is to choose an accountant suitable for your business.
It always helps to try and appoint an accountant who will understand your individual needs and unique circumstances, so find out if the accountants you are considering has any expertise in your industry and, crucially, if they are experienced at dealing with freelancers and small businesses.
You will also want to know exactly what you are getting for your money, for example, whether or not you will get regular telephone or email support, or if you will be billed extra every time you get in touch with a query.
Make sure they are clear about what fees you will be charged.
Choosing an accountant is a key decision as they will have direct access to your most detailed financial information and should play a key part in the development of your business so it is important that you choose the right one from the start.
How Easy Accountancy can help
Easy Accountancy specalises in offering low cost, fixed fee accountancy packages to the self employed, sole traders, freelancers, small to medium sized limited companies and private individuals.
For a simple sole trader or freelancer, our all-inclusive packages start at just £60 plus VAT a month. As a client of Easy Accountancy you will be assigned your own dedicated accountant who you can telephone or email as much as you would like without any additional charges. This is really important when your pushing hard to grow your business or just starting, as our accountants will be able to give you valuable tax saving advice. Also your accountant will take care of all your personal and business taxation needs throughout the year.
For more advice on how Easy Accountancy can help you and business, or to find out more about our low cost fixed fee packages, please call 0500 234 111 / 01442 275767 or email email@example.com.