It’s not uncommon for a new business to start out as a kind of side hustle you run from home, alongside another, more stable job.
If this sounds familiar, you probably don’t have a load of spare money to spend on an accountant, but that doesn’t change the fact that you would benefit from hiring one.
So, where does this leave you?
Thankfully, there are many different options available when it comes to hiring an accountant, and some are more cost-effective than others.
Let’s take a closer look.
Is it worth hiring an accountant?
Among other things, building a business from the ground up requires patience, hard work, and significant investment.
Every little counts, and so it’s understandable that you would maybe think twice before choosing to hire an accountant, with any leftover money instead being channelled back into growing your business.
What most people miss, though, is that hiring an accountant is also an investment in your business.
Dealing with HMRC for the first time is a steep learning curve, and managing that experience can be much easier with an accountant in your corner.
Having an accountant on call will also free up time that might be spent on your accounts for you to focus on bringing in new business or promoting your services.
What’s more, an accountant can provide specialist advisory services and spot potential financial issues before they become a problem, reducing the risk of your business being investigated by HMRC.
Not to mention accountancy fees are tax deductible when incurred wholly and exclusively for your business.
Finding an accountant
The first thing you should do is look at your options.
You’ll find that some accountancy firms operate exclusively online, offering low-cost remote services.
These services are mainly targeted at small businesses or freelancers, and offer a full range of accounting services at affordable prices.
Traditional high street accounting is still an option, too, offering face-to-face meetings and a “personal touch” that some really value.
Regardless of the type of accountant you ultimately choose to go with, you’ll also want to make sure they’re appropriately qualified by looking out for specific qualifications.
For example, you could look for a Chartered Certified Accountant (commonly abbreviated as ACCA) or a member of the Institute of Chartered Accountants in England and Wales (ICAEW).
Also consider whether you’d be fine with a generalist accountant who covers all the bases, or whether you’d benefit from hiring someone with specialised knowledge.
What are the main differences?
The big difference is how you actually work with your accountant – as opposed to, say, the exact services or expertise you receive from them.
Generally speaking, an online accountant provides support remotely, while a high street accountant offers a local office where you can arrange to meet in person.
There can be some overlap, though.
Some online firms provide a dedicated accountant, and some local firms offer remote or over-the-phone appointments.
As an example, The Accountancy Partnership offers remote support from your own dedicated accountant at fixed monthly fees, starting from £24.50 per month.
You can find out more about how much an accountant really costs here.
Is an online accountant cheaper?
It can be, but you need to do your research first.
The most useful comparison to make would be the total cost of the services your business needs – rather than looking at only the advertised starting price.
Ask whether the quote includes bookkeeping, accounts, tax returns, payroll, software, and ongoing advice, or whether some of these cost extra.
It’s also a good idea to agree how often you can contact your accountant, as well as the typical turnaround times you can expect.
Some other important factors to consider include:
- Scope of work
- Charges
- Communication
- Service levels
- Qualifications
- Experience
- Reviews
Which should you choose?
As with most things business-related, it comes down to personal preference and what’s best for you based on your own unique situation.
An online accountant may be the better option if you prefer remote communication and want to avoid travelling for appointments.
On the other hand, a high street accountant is worth considering if face-to-face communication is important to you, and they may also understand specific regional business challenges.
Remember, though: neither preference should replace doing your due diligence and carefully comparing pricing structures, and as we have seen, the line between online and traditional accountant is becoming increasingly blurred as firms look to provide a personal service in a more convenient way, and at a lower overall cost.
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.
