Being self-employed is a joy for many as it comes with a lot of freedom. That being said, self-employment comes with greater responsibility too, and your finances are often one of the most difficult and time-consuming elements to manage. From record-keeping to preparing tax bills – all while trying to stay in the know of ever-evolving tax laws – managing your finances can feel like a full-time job in itself.  

Wondering whether you need an accountant when you’re self-employed is more common than you think. It can be hard to know if you can handle your accounts solo or if you need to hand them over to a professional. One thing’s for sure; accounting truly is the backbone of every successful business.  

What does an accountant do? 

When people think of accountants, they often think of someone who just handles the numbers. The truth is that accountants are so much more than number-crunching machines! Here’s just a handful of ways an accountant can offer their expertise to help keep your business finances ticking along smoothly:  

Bookkeeping  

Accountants help you track income and expenses accurately and in real-time using automated systems. Not only does that mean you don’t have to learn the mechanics of using new digital software, but you also know a professional is monitoring your finances with a trained eye. 

Record-keeping  

Financial records should be accurate and up to date from the get-go. It’s just as important to collate things like revenue and receipts into financial statements as it is to stay on top of doing this regularly. The longer you leave administrative tasks to pile up, the harder it is to track cash flow and have easy access to the financial health of your business. 

Tax preparation  

Filing taxes correctly and on time is one of the key parts of managing your finances. Failing to do so can result in building up large penalties. An accountant will help make sure you’re always one step ahead of the deadlines so you never risk filing late. 

Tax planning  

Equally important when it comes to taxes is understanding deductions so that you can minimise your tax liability in legal ways. Accountants are experts in allowable expenses so you can rest easy knowing you’ve claimed for everything you can but nothing that you’re not eligible for.  

Compliance  

This one shouldn’t be overlooked. It’s no secret that tax laws and regulations are ever-changing and if there’s one thing you can rely on your accountant for, it’s staying in the know about rules that need to be adhered to.  

Financial advice & insights  

From guiding you on budgeting and saving strategies to advice on growing your business and investment opportunities, an accountant can help you weigh up the risks of various financial decisions. 

Benefits of having an accountant if you’re self employed 

As someone who owns their business, you’ll already be familiar with the difficulties of managing several tasks at the same time. If you’re worried about being spread too thin – and potentially making critical mistakes that harm the business as a result – you may want to consider getting an accountant on board.  

With somebody else now tracking income and expenses, handling tedious financial tasks, preparing tax returns, and more, you’re free to focus on running your business. Not only will you be saved time and stress, you also won’t have to deal with decoding complex financial jargon. 

What’s more, accountants are well-versed in optimising your tax liability and making sure you’re maximising your allowable expenses. The list of deductions that you can make use of are known to change regularly so it’s crucial to have someone who is up to date on these changes.  

Finally, working with an accountant is a fantastic way to efficiently do some long-term planning. Whether scaling is on your mind and you need help budgeting for a possible business expansion, or you need guidance on how to better manage your cash flow, a trained professional has the insight you need to help you make these decisions with confidence.  

Situations you may not need an accountant in if self-employed 

Not every self-employed business owner needs an accountant. 

If you’ve reached this part of the blog and you’re still not sure if an accountant is the right move for you and your business, the following points might bring you some clarity. 

• Is your business on a very small scale (e.g. perhaps you’re a freelance copywriter with only a handful of clients)? 

• Do you have a good understanding of basic accounting? 

• Are you committed to staying up to date with changing tax laws and understanding which expenses you can and cannot deduct? 

If the answer to all the above questions is a resounding yes, it’s likely you’ll be able to handle your bookkeeping and tax duties on your own, especially in the early stages of your business. You may find that as your business grows and your client list expands, you will need to look into hiring an accountant to share the workload with. 

Above all, you have to ensure you are a disciplined person with real time and patience to dedicate to handling your finances with care. Often, it’s when you’re in a rush or you leave things to the very last minute that mistakes are made. Having an accountant is more than having someone help with finances – it’s a way to make sure you have a second pair of eyes on your accounts to catch any discrepancies before it’s too late. When it comes to finances, peace of mind is paramount.  

Choosing an Accountant 

Like all the best things in life, the perfect accountant will be someone who completes you. They should have the right expertise and knowledge to be able to provide you with invaluable insight – in other words, they are the helping hand you need to guide you through unfamiliar territory. 

Aside from all the usual qualities – reliable, trustworthy, accredited, the list goes on – it’s important to find an accountant who makes accounting easy, and this is something that is sometimes overlooked. The last thing you need is someone who talks down to you or makes language unnecessarily complicated and bursting with jargon. Accounting tasks are complex, yes, but talking about them doesn’t have to be!  

The last thing to look out for is cost versus reward. It can be tempting to save pennies and opt for a cheaper accountancy package, however, you first need to make sure the offering really matches up to your needs. Some accountants may only offer advice on expenses and tax preparation help, while others have a more robust offering that covers annual accounts, bookkeeping, and more. This makes the prices vary so you need to be sure it’s worth the extra cost.   

It goes without saying, but always make sure to do your research and compare a few different options before you settle! 

Making Tax Digital 

From April 2026, Making Tax Digital rules will apply to income tax and not just to VAT. What does that mean? Individuals earning above £50,000 per year from self-employment and/or letting properties required to submit accounts online. The main tasks of MTD include keeping digital records (instead of filed on paper) and submitting quarterly updates to HMRC as well as a final End of Period Statement at the end of the tax year to replace the current Self-Assessment Tax Return. 

If you’re self-employed and think the new Making Tax Digital for income tax rules will affect you, perhaps now is the perfect time to start planning ahead. An accountant can help guide you through the MTD process. 

Get in touch 

Put simply, while not every self-employed individual needs one, the truth is an accountant can add great value to the day-to-day running of your business’ finances.  

Need more info? Check out our blog page or speak to one of our experts to find out what you need to know. You may also find it useful to check out our offering to see if it aligns with your accounting needs.