Earlier this year, a friend and prospective client asked me this question. It’s a good one — and one that many people wonder about. So I thought I’d write a short post to help others who might be asking the same thing.
The short answer: No, you don’t need an accountant
It’s perfectly possible for many self-employed individuals and property owners to complete their own self-assessment tax returns. Likewise, limited company directors can file their own accounts, tax returns, and confirmation statements.
But there are a few reasons why you might choose not to do it yourself - and I’ll walk through some of them here.
Time
Completing your own accounts can be time-consuming. The forms often include accounting terminology that may be unfamiliar, and it can take a while to figure out what’s required before you even begin.
Because it’s something you only do once a year, it’s easy to forget the process - and changes to rules or forms can make it feel like starting from scratch each time.
Hiring an accountant doesn’t remove you from the process entirely - you’ll still need to prepare your data and answer a few queries - but it will save you significant time and allow you to focus on the work that actually earns you money.
Knowledge
The paperwork itself can be confusing, and tax law changes frequently. Accountants are required to stay up to date with the latest rules and regulations, so you can be confident that your accounts are accurate and your tax bill is correct.
We complete many sets of accounts each year, and we know what needs to go where. That experience helps us spot issues early and avoid costly mistakes.
Confidence in the Accuracy
That confidence can be worth a lot. You don’t want to be lying awake wondering if you’ve misunderstood a question or entered the wrong figure.
Working with an accountant gives you peace of mind that everything has been handled properly, so you can focus on what matters most to you.
Support
An accountant can support you in many ways beyond just filing your return.
If we’re authorised as your agent, we can speak to HMRC on your behalf, which means we spend half an hour on hold, not you. We also know how to answer HMRC’s questions and resolve issues quickly.
Throughout the year, you’ll likely have questions. Rather than waiting until year-end and trying to untangle things, we can help you plan ahead and make informed decisions.
We also advise on related areas like record-keeping, accounting software, employing staff, and whether you should operate as a sole trader or limited company.
Do You Want to Complete Your Accounts...
... but need some support around how to do so? We offer training packages to help with just that. Feel free to get in touch to discuss your needs and we will see what we can offer you.
An accountant should be able to support you in many different ways.
If your accountant is fully authorised as your agent, they will be able to contact HMRC on your behalf if any interaction with them is necessary. More than anything else, this means that we spend half an hour on hold to them rather than you doing so! We will also have the understanding to be able to answer any questions that HMRC may ask there and then to hopefully resolve any issues as quickly as possible.
You will likely have questions occur to you during the year. Rather than wait until year end and try to untangle anything, an accountant can answer your questions throughout the year so that you have the knowledge up front and can plan accordingly.
We can also support you with other things that are tangential to submitting your accounts, such as advice around the record-keeping side of things, or using software, what to do if you want to employ staff, whether you should be a limited company or a sole trader, and much more.
And if you do still think you want to complete your accounts yourself but need some support around how to do so, we can offer training packages to assist you with. Feel free to get in touch to discuss your needs and we will see what we can offer you.
