In fact, it might even make sense for some business owners who would benefit from specialist expertise, or just want to keep their bookkeeping and accounting separate.

But having multiple accountants isn’t for everyone.

There are also good reasons to stick with one and keep everything under the same roof, as it were.

In this article, we’ll weigh up both sides to help you decide what’s right for your business, according to your own unique circumstances.

Can you have more than one accountant?

Yes, a business can use more than one accountant or accounting firm, and there’s generally no requirement to use a single firm for every accounting service.

Still, it’s important to understand who is responsible for each task in order to avoid confusion.

There’s also a difference between appointing multiple accounting firms and authorising multiple tax agents to deal with HMRC on your behalf, which can involve service-specific restrictions.

Why might a business use two different accountants?

So, what are some situations where appointing more than one accountant could make sense for you?

Let’s take a look.

Using a specialist accountant for specific services

You may want to hire a tax specialist to help with complex planning, or simply to offer ongoing support.

At the same time, you might use another firm for an audit or specialist advisory work in a particular area.

An example could be getting expertise for international transactions or business restructuring.

Separating personal and business finances

The director of a limited company might decide to use one accountant for the company’s annual accounts, and another for their personal Self Assessment tax return.

This arrangement is a clean way to compartmentalise your finances, although you have to ensure both accountants or accounting firms are on the same page regarding things like salary, dividends, and benefits.

So, communication is key.

Splitting accounting responsibilities between firms

This is where one accountant handles bookkeeping and VAT returns, say, while another handles payroll, annual accounts, or tax returns.

Clearly defined responsibilities help to safeguard against possible confusion or overlap, and they also stop a single accountant from becoming overwhelmed (for example, if they had to do everything themselves).

Can two accountants deal with HMRC on your behalf?

HMRC agent authorisation is the process of giving an accountant or tax adviser permission to deal with HMRC for you.

Without this authorisation, an accountant generally can’t access your tax information or discuss your tax affairs directly with HMRC.

You can use two accounting firms, but HMRC agent authorisation doesn’t necessarily allow both to act for the same tax service simultaneously, and so appointing a new agent may replace an existing one if you’re not careful.

It’s worth noting, though, that Making Tax Digital (MTD) for Income Tax works differently. Sole traders and landlords can appoint one main agent alongside one or more supporting agents, each with different levels of access. Even so, it’s important to be clear about which firm holds which role.

What are the disadvantages of using more than one accountant?

We’ve covered when it might be appropriate to use multiple accountants as a business owner, but there are some drawbacks, too…

Confusion over responsibilities

While you can certainly try to keep everything organised, it’s not always that easy, and so you run the risk of tasks being duplicated – or even missed entirely.

What’s more, there could be uncertainty around who is supposed to communicate with HMRC, and submit things like your tax returns.

There’s also potential for conflicting advice, which obviously isn’t productive and could cause you to second-guess decisions you make in running your business.

Problems sharing financial information

Different accountants work in different ways, and so you could face difficulties trying to coordinate deadlines and changes.

They may also be working with incomplete or outdated records.

It helps to keep everyone in the loop, and this is where good bookkeeping software comes into play, enabling you to share your financial records in real time.

Bear in mind that good bookkeeping software is nothing without accurate and up-to-date records, though, so be sure to stay on top of this.

Additional accounting fees

This almost goes without saying, but hiring more than one accountant also means paying for more than one accountant, and depending on how well-organised you are, you could be paying for overlapping services.

In addition, there’s likely to be extra admin required when coordinating multiple firms, as opposed to just one.

A single provider tends to be the more cost-effective option for most routine accounting requirements.

Is it better to use one accountant for everything?

Generally speaking, it’s better to have one central contact for bookkeeping, payroll, VAT, and tax returns.

Some businesses may still benefit from specialist support in key areas, so consider your business structure, complexity, and accounting needs before reaching a final decision one way or the other.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Can I Use More Than One Accounting Firm at a Time? appeared first on The Cheap Accountants.

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.

The post Is an Online Accountant Cheaper Than a High Street Accountant? appeared first on The Cheap Accountants.

It’s easy to get a bit complacent once you have an accountant, thinking they’ll just take care of everything for you, but it’s good to try and maintain an active role in the management of your business’s finances.

As a starting point, we’ll look at some of the best questions to ask your accountant to make sure you stay in the loop and on top of everything. Read our guide to finding an affordable accountant.

Is my current business structure tax efficient?

Your business structure is simply a way of classifying the legal status of your business for tax purposes.

For example, operating as a sole trader means there’s no legal distinction between you and your business. A limited company, on the other hand, is a separate legal entity.

Choosing the right business structure is perhaps the most important decision you’ll make, impacting how the business operates, as well as how much tax you need to pay.

Choosing what’s best for you depends on your individual circumstances.

For example, if you’re a sole trader with a high profit margin, it may be more tax-efficient to switch to a limited company so you can pay yourself a mixture of salary and dividends.

An accountant can take away the stress and break down the pros and cons based on your specific circumstances. They’ll also look at things like whether you have a high or low risk business for liability purposes.

If it turns out you do need to switch, they can walk you through the process.

What taxes do I need to pay?

The simple answer is, it depends.

Your accountant will make you aware of all your tax obligations, which vary depending on your business structure. So it’s a good question to ask.

As an example, sole traders pay Income Tax on their self-employed income, whereas in a limited company, the profits stay in the business until you pay them to yourself (e.g. in the form of a tax-efficient salary if you’re a company director). You can also pay yourself in dividends, if there’s available profit within your business.

Evidently, it can all get a bit convoluted, which is why having an accountant on hand is so helpful!

Do I need to register for VAT?

Value Added Tax (VAT) is a type of sales tax on all products and services deemed non-essential by HMRC.

If you’re a business owner, you only need to worry about it when your VAT taxable turnover reaches the £90,000 registration threshold in any 12-month period.

Now, some businesses choose to register for VAT voluntarily (to either start reclaiming it or simply to boost the business’s reputation), but be sure to speak to your accountant before making a decision on this.

What financial records do I need to keep?

Good record keeping is essential – both for HMRC compliance and managing your business.

Your records will generally show every transaction that happens in the business, and this allows you to track your spending.

At a minimum, you’ll need to keep records of your:

• Business expenses
• PAYE records (wages, tax, and National Insurance deductions)
• VAT records
• Financial documents (balance sheets, cash flow statements, and forecasts)

With Making Tax Digital (MTD) slowly being rolled out, it’s more important than ever to start keeping digital records using special purpose-built software.

Records also need to be kept for a specific period of time after submission, and your accountant can advise you on how long exactly, as it’s different for everyone.

How can I make my business grow?

First and foremost, you’ll want to set clear and actionable goals for yourself in both the short and long term.

Plan ahead (especially in the early days), and make sure you understand all of your tax obligations so you don’t get caught out.

It’s important to remember that a good accountant is more than just a tool to help you stay compliant.

They can also give input on things like cash flow management, tax efficiency, and your overall growth strategy.

Are there any upcoming changes I should know about?

Tax laws and regulations are constantly changing.

For example, the standard multiplier for business rates has decreased from 55.5p to 48p in 2026/27, and the minimum rate per hour for employees 21 or older has increased from £12.21 to £12.71.

These changes were announced as part of the 2025 Autumn Budget.

It’s part of your accountant’s job to keep you informed, but there’s no harm in asking directly if there’s anything you’re unsure about.

Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Questions to Ask Your Accountant appeared first on The Cheap Accountants.

There are lots of considerations to make, and so, naturally, it’s easy to overlook things. One thing you may have overlooked is whether or not you would benefit from hiring an accountant.

To help you decide, we’ll break down the process of becoming a sole trader, your legal responsibilities, and how an accountant might help.

What is a sole trader?

Let’s start with the basics. A sole trader is just someone who runs their own business as an individual.

There’s no legal distinction between you and the business with this type of structure, so you’re personally liable for anything that happens. This is both good and bad – depending on your circumstances.

Considerations about being a sole trader

On the one hand, your personal assets might be at risk if the business struggles because there’s no distinction beween you and your work. On the other, you get to keep any profits for yourself once you’ve paid income tax and National Insurance. But, you’ll be taxed on them even if you leave them in the business.

It’s relatively easy to get yourself set up as a sole trader, with fewer rules and paperwork than if you were to use a different business structure.

Do I need to set up as a sole trader?

It depends! If you earn less than the Trading Allowance (£1,000, increasing to £3,000 from April 2027) in self-employed income, you might not need to tell HMRC or pay tax on this. You can claim the Trading Allowance even if you have other sources of income, too.

If you do need to set up a sole trader business, make sure you inform HMRC by 5th October in your second tax year. A tax year runs from 6th April to 5th April the following year.

How do I pay tax as a sole trader?

Right, so… You’ve set up as a sole trader and you get more than £1,000 of trading income in a tax year. Now what?

Well, you’ll need to start submitting tax returns to HMRC so you can pay income tax and National Insurance on the profit you make.

What sort of tax return do sole traders need?

This depends on how much you make in total from self-employment and/or property income in a tax year. You’ll normally start by submitting Self Assessment tax returns.

Over time, you might also need to consider Making Tax Digital (MTD) Income Tax. As it continues to roll out, MTD Income Tax will gradually replace Self Assessment for some people.

Those affected will need to keep their income tax records digitally, and share this information with HMRC on a more frequent basis using compliant software.

• You’ll use MTD to report your tax from April 2026 if you earned more than £50,000 as a sole trader and/or rental income in the 2024/25 tax year
• In April 2027, the earnings threshold to start complying reduces to £30,000 earned in the 2025/26 tax year
• From April 2028, it’s £20,000 for the previous tax year

How do I make a tax payment?

HMRC will calculate your tax bill once you submit your return. There are many methods you can use to pay, including HMRC online, Direct Debit or bank transfer. If you work for an employer and have a sole trader business on the side, you may be able to pay your self-employed tax bill through your PAYE tax code.

The deadline to pay is 31st January each year (the same as the deadline to submit your tax return for the year). If your tax bill exceeds £1,000, you’ll need to make ‘Payment on Accounts’ – which essentially splits your tax bill in two halves. The second tax payment deadline is 31st July.

What are my other responsibilities?

You want to . This will be essential in helping you fill out your tax return, and will also help you to claim tax relief without forgetting about any allowable expenses.

Do I need an accountant?

Having an accountant can be extremeley reassuring. They’ll:

• Help you set up processes for keeping clear, up-to-date financial records – known as bookkeeping
• Advise how to optimise any tax reliefs and allowances, and make sure you’re claiming any allowable expenses
• Suggest software you can use for bookkeeping, or for MTD compliance if this applies to you

There are lots of different types of accountancy services available, so take your time to understand exactly what sort of support you need, and make sure your accountant is appropriately qualified.

Find more help in our online accounting hub, and learn more about how to find the right accountant for your business. Read our guide to finding an affordable accountant.

The post Do Sole Traders Need an Accountant? appeared first on The Cheap Accountants.

Known as ‘appointing a paid agent’, it basically means delegating to a professional who will then liaise directly with HMRC about your finance and tax-related matters.

Who can be an agent for me?

Paid agents can be tax advisors, solicitors, or accountants, but you can authorise almost anybody to act on your behalf when it comes to dealing with HMRC, including family members and friends.

This type of agent is known as a ‘trusted helper’.

Although you have a number of options when it comes to who you can appoint as your agent to deal with HMRC, there are advantages to selecting your accountant for the role.

What can my accountant do as an HMRC agent?

An appointed agent can act on the taxpayer’s behalf for different types of tax, such as Corporation Tax, VAT, PAYE and Self Assessment – you might even have different agents for each one.

Simplifying processes and communication

Communication with HMRC can involve anything from queries and requests for information, to payment notices and deadline reminders. Appointing your accountant as your agent means the majority of this correspondence can be filtered through them.

This can make life a lot easier, leaving your agent to relay information to you as needed (and translated into plain terms, rather than scary-sounding HMRC speak).

Audit representation

If HMRC decide to audit your accounts or launch an inspection, your accountant will be able to make sure everything is in order, and talk you through what’s happening. An HMRC audit can be a daunting prospect, so having a professional in your corner can be a valuable source of confidence and support.

Compliance and strategy

As well as helping you stay on top of all your deadlines, your accountant will make sure you remain fully compliant with HMRC at all times.

They’ll also be able to help you optimise your tax efficiency, improve your financial reporting systems and save costs in line with all of the necessary rules and regulations.

Save yourself some time

As well as the tools of the trade that an accountant can bring to the table as your paid agent, there is also the overall benefit of significant time-saving – gold dust for business owners, right?

Having a professional at the helm of any back-and-forth with HMRC means you can focus on other things, like growing your empire. It also reduces the risk of any errors or confusion along the way, which, again, buys you back invaluable time and fends off financial penalties.

Keep stress to a minimum

All the above benefits combined make for a far less stressful relationship with your taxes and HMRC. Entrusting your accountant takes the pressure off you in exchange for peace of mind that your tax affairs are being dealt with by those who know what they’re doing.

How to appoint an accountant as an agent

The first thing to do is check your accountant meet HMRC’s standards for agents.

If you’re satisfied these standards are met, the next thing you need to do is provide your chosen agent with permission by appointing them through one of HMRC’s official authorisation processes.

Your agent will be able to guide you through whichever method is best for you.

Read our guide to finding an affordable accountant.

Authorising your agent with a 64-8 paper form

A 64-8 form can be used to authorise an agent to deal with Self Assessment, partnerships, trusts, tax credits and people being paid via the PAYE system. It’s also used for VAT and for Corporation Tax.

You and your accountant can work together to make sure all the necessary fields are filled in before you send it back to HMRC to process.

Authorise access to your accounts online

Your accountant can apply for access to your tax accounts through their own HMRC Agent account.

This process will generate an agent code for each tax type they’re dealing with for you, which will be sent to your registered business address. Share these codes with your accountant so they can complete the authorisation on their end and start acting on your behalf.

Grant access through your tax account

If you’d prefer to grant your accountant access to act as your paid agent yourself, you can do this through your business tax account by signing in using your Government Gateway or One Login.

Note: You will need to be set up and registered for HMRC Online Services for this method of agent authorisation.

A ‘digital handshake’

This is where your agent sends a link for you to click that will digitally authorise them to deal with HMRC on your behalf.

What happens after I appoint an agent?

Once somebody, such as an accountant, has been appointed as an agent ready to act on your behalf, you can arrange for them to receive most of your correspondence with HMRC. There are a few exceptions to this, including your tax bills and any refunds you’re eligible for.

Removing an agent’s access

If you no longer wish for somebody to have access to your accounts or act on your behalf as an agent, there are two ways you can undo this:

• Go to your HMRC business tax account (if you have access to this) and remove or swap the agent
• Contact HMRC over the phone or via post, and they will be able to guide you through the agent removal or replacement process from there

Your responsibilities as a taxpayer

Appointing a representative agent is useful but you (the taxpayer) are still ultimately responsible for reporting and paying your own taxes.

That’s why it’s so critically important to have a communicative relationship with your trusted agent(s) and provide them with honest, detailed, and up-to-date information.

It’s also essential to review all documents and tax returns that are shared with HMRC on your behalf to ensure that your records are accurate and compliant. If they aren’t, you’ll be the one dealing with the repercussions, such as financial penalties, not your agent!

 
Looking for more business support? Head over to our info hub for the latest news and handy resources.

The post Can My Accountant Deal with HMRC for Me? appeared first on The Cheap Accountants.

We’ve spoken many times before about the benefits of hiring an accountant to help your business be as tax-compliant and tax-efficient as possible. That said, affording the cost of an accountant is another kettle of fish, especially if you’re just starting out or hitting some financial struggles.

So, if you can’t afford to add an accountant to your outgoings, what are your options? After all, your tax returns are still going to roll around each year regardless.

In this article we explore your options if you can’t currently pay to hire an accountant. Don’t worry, there’s still plenty of help out there to keep you on top of your taxes with as little stress as possible.

Reach out to HRMC if you have tax questions

If you have any simple queries, you can contact HMRC online or call them to see if they can guide you.

HMRC also provides a whole host of different online resources to help taxpayers of all shapes and sizes. On the website, you’ll find things like free webinars and videos, tax return guides and handy tax calculators, all designed to support you.

Explore HMRC’s Tax Help hub.

Get in touch with TaxAid

If HMRC can’t help you out, your next stop should be TaxAid. It might also be your first stop if you’ve ever tried to look at one of HMRC’s tax manuals! TaxAid gives free, independent and confidential advice to low-income UK taxpayers aged under 60 or who are self-employed. It aims to make all things tax easier to follow and understand as a business owner who can’t afford the cost of leaving it all to the professionals.

It also supports those who:

• Have physical or mental health issues
• Struggle with addiction
• Have undergone traumatic or life-altering events
• Have poor communication, numeracy and/or literacy skills

You can call TaxAid’s dedicated helpline if you need some assistance: 0345 120 3779.

Use free online guides, templates and tutorials

The internet is full of free resources you can use to navigate your self-employed tax and accounting responsibilities. It can also be a bit too full of advice, at times. Do your homework and only use resources and guidance from sources you know are reliable. It’s also important to make sure you consult resources from the correct country! The tax rules in the UK are different to those in the US, for example.

Take advantage of free accounting advice

Even if you can’t afford to hire an expert, Google has got your back. Or rather, the fantastic accounting firms out there that are open to sharing free advice and resources online to help people in your situation.

A great example of this is the Ask an Accountant feature offered by The Accountancy Partnership, where you can ask a qualified accountant a tax question for free.

Some firms will offer things like consultations to support you without having to commit to paying for the full service.

Take a course in accounting basics

If you think you may not be able to afford an accountant for the foreseeable future, it could be worth equipping yourself with the basic accounting skills you might need.

There are dedicated course websites like Coursera, the Open University, Udemy and edX but YouTube is also a great place to browse for free but valuable learning content.

A course may require an initial investment as some will be paid but there are plenty of free versions available. Even if it does come with a price tag, it could save you a lot of money in the long run. You might be able to claim the cost as a business expense, by deducting the amount from your total income when you submit your tax return to HMRC.

Use free bookkeeping software

Good bookkeeping habits are the foundations of accurate, timely and low-stress accounting, so finding free bookkeeping software will make your life a whole lot easier.

Don’t assume an accountant is super expensive

Hiring an accountant may be cheaper than you think. Many firms are happy to take a one-off job, like filing your Self Assessment tax return, for a fee of between £150 and £300 (although prices may vary). And while that may seem like a lot, it could work out cheaper than the HMRC penalties you might face if you get your tax return wrong.

It’s also worth comparing your options, as the gap between online and traditional accountants is smaller than ever, and you can often get plenty of support by phone or video call. So, before you rule out professional help altogether, it could be worth getting a quote or two.

Don’t be afraid to ask for help

If you are in a position where you can’t currently afford the cost of an accountant, don’t be nervous about reaching out for help. There are so many other business owners in exactly the same boat, which is why there are so many brilliant free resources out there!

Don’t be afraid to speak to other business owners you trust about general advice or help with specific tax-related topics. They may be able to show you how to do something, help you understand something you’re confused about, or point you in the direction of some other great tools and resources they rely on themselves.

If you don’t have a trusted network of like-minded business owners, you could consider joining a business support group or look on social media platforms like Facebook or LinkedIn. There you’ll find communities of people just like you, with questions just like yours.

Managing your taxes yourself can be tricky, especially if you’re not familiar with the rules! Check out our accounting support hub for more help, or to ask a tax question for free.

The post What Can I Do if I Can’t Afford an Accountant? appeared first on The Cheap Accountants.

But, if you want expert financial analysis, tax efficiency advice, business forecasting, and professional representation with HMRC, software alone can’t replace that.

For most businesses, the ideal setup is both working together – and this article explains why, along with what each one brings to the table.

What is the difference between accountancy and bookkeeping?

Although bookkeeping and accounting both deal with a business’s finances, they do so in different ways. A simple way to look at it is like this: bookkeeping is just that – keeping the books up to date. Accountancy is about analysing, understanding, and reporting on this data.

Read our guide to finding an affordable accountant.

What a bookkeeper does

Bookkeeping is the process of recording financial transactions and maintaining accurate business accounts. These are the cold, hard, numerical facts about what comes in and goes out of your business. It’s essentially the preliminary admin necessary for an accountant to do their job.

What an accountant does

An accountant will use the information which the bookkeeper records to improve the tax-efficiency of a business and support its financial health. They can help business owners make more money-savvy decisions, whilst ensuring everything is compliant for HMRC.

Can bookkeeping software replace an accountant?

The answer to this question largely depends on what you rely on your accountant to do for you. If you only enlist them to carry out financial admin and prepare your annual tax return then yes, in theory, you could do it all yourself using bookkeeping software.

However, if you were to really wring all possible potential out of your accountant’s expertise, you might find the answer to this question is a hard no.

Make no mistake, using bookkeeping software has an enormous number of benefits, including:

• Keeping all of your financial information in one place, improving access and organisation
• Remote access for multiple users when you choose a cloud-based bookkeeping software
• Using software that includes active error detection reduces the risk of mistakes in your records
• Save time on data-entry by connecting payment feeds directly to the software
• Automated reminders so you’re less likely to miss a deadline
• Minimising the risk of omission and human error

But bookkeeping software doesn’t have an accountant’s ability to spot areas where you can become more efficient in the way you run your business, or in the way that you pay tax. If you were truly working effectively with your accountant, you wouldn’t even consider sidestepping them for software alone.

If you can afford it, tapping into both resources simultaneously can help you more effectively as a business owner.

The benefits of having an accountant and bookkeeping software

We’ve touched on a few of the most common benefits of investing in great bookkeeping software above. But why do we recommend you still consider using an accountant as well? Ideally, the bookkeeping software you use will complement the work an accountant does for you.

Professional data analysis and insights

With access to accurate financial records (courtesy of excellent bookkeeping), an accountant will be able to dig into the data of your business accounts and offer insights accordingly.

Good bookkeeping software will have a range of comprehensive reports included, but if you’re not very experienced then you might find an accountant can help make sense of it all. These types of insights could be the difference between making your first million or operating at a loss for the next five years.

Better business decisions

An accountant will be able to provide you with valuable decision-making guidance by applying their expert risk analysis, financial forecasting and budget advice. Remember too, they see behind the scenes of a lot of other businesses!

Improved cash flow health

When you have professional data analysis, audits, risk analysis, and forecasting on your side, it stands your cash flow in great stead. Not only will this positively impact your current cash flow situation, you can also work with your accountant to plan ahead, mitigate pitfalls, and grow stronger as a business.

A buffer between you and HMRC

As well as insight into your financial profile, a good accountant will also offer representation in front of HM Revenue & Customs, if and when you might require it. It helps reduce some of the stress!

Our verdict?

When used in conjunction, bookkeeping software and the services of a terrific accountant are a force to reckoned with.

Without robust bookkeeping down to the decimal point, an accountant can’t possibly do their best work. Without an accountant on the receiving end of the information, there’s a ceiling on how useful even the most meticulous bookkeeping can be if you really want to maximise efficiency in your business.

 
Looking for some more support with your business finances? Compare accountants and learn more about bookkeeping software.

The post Do I Still Need an Accountant if I Use Bookkeeping Software? appeared first on The Cheap Accountants.

While there’s no legal requirement for you to have an accountant on board when you launch your business, their experience and expertise can be a valuable source of information, guidance, and yes – reassurance. So how do you know who to choose, and what can they do to support you? Let’s take a look.

What are the benefits of having a business accountant?

There are several reasons why having an accountant can be useful, including:

• They can help you save huge amounts of time on tasks that would take you much longer, such as tax and VAT returns
• An accountant has the experience and knowledge to help you stay compliant with Companies House and HMRC rules
• Being in the industry, they’re a good source of information about grants, funding, and allowances suitable for your business
• A professional insight of your tax efficiency. An accountant can help you limit the amount of tax you have to pay, whilst ensuring you’re fully compliant at all times. That includes claiming for any expenses you’re entitled to, but worried about claiming for!
• Help with business planning and financial forecasting, so you can be as efficient as possible

Read our guide to finding an affordable accountant.

Even brand new startup businesses, or those about to get going, can benefit from their money saving expertise. Don’t let this overwhelm you though. Whilst your business is still in its infancy, you could always enlist a professional on an ad-hoc or consultancy basis.

You might even look for an accountant who charges their services as a monthly fee, helping you to spread the cost.

Writing a knockout business plan

An integral part of all solid business plans includes information about its financial situation and future projections. Any lender or investor looking at your business plan is going to want to see these details. Having a qualified accountant help out with this is a great way to ensure accuracy and authenticity.

Forming your company

An accountant will be able to guide you on what type of business structure would be best for you, such as operating as a sole trader or forming a limited company. They will even be able to help you form and register the business correctly.

Starting as you mean to go on with good bookkeeping habits

Balanced books and organised accounts are key to maintaining healthy cash flow. Having an accountant will help you stay on top of your bookkeeping.

Some accountants will even provide you with access to bookkeeping software as part of their services.

Help applying for loans and funding

Accountants are incredibly useful if you’re planning on looking for cash to help your business scale or develop in some way. They’ll be able to help you present your request and supporting information, as well as spot opportunities you might not think of.

Keeping you on the right side of HMRC

Experienced accountants are well-versed in HMRC deadlines and regulations. This knowledge will help to keep your business on the straight and narrow.

Things to look out for in a great accountant

Accountants in general have a lot to offer for a business. To really get the most out of paying an accountant’s fees though, consider the following points as a rough guide to help you choose one right for you.

• Experience working in your industry or sector
• A great reputation, and positive online reviews
• Use of online accounting software or a bookkeeping service to help you keep everything up to date (and without needing to visit them in-person if that’s not a requirement for you)
• Knowledge of the various tax laws and regulations that apply to your industry
• A strong rapport with you and your staff, because things tend to run much smoother when everybody gets along
• Attention to detail and vigilant analytical thinking
• Good communication skills, so you always feel kept in the loop
• Receptive to any questions you might have!

 
Still unsure about taking the plunge, but need some help? Ask a tax question for free!

The post How Do I Know If an Accountant Will Be Good for My Startup Business? appeared first on The Cheap Accountants.

Good accountants can be used as a key tool for growing your business, so here are our top five ways to get the most from them.

Give them the right information

In an ideal world your accountant would follow you around, recording and considering all of your financial transactions and advising you of the tax implications.

Fortunately, accountants generally don’t have the time or desire to stalk their clients 24 hours a day. Unfortunately, they depend on you to give them a complete and accurate summary of your financial year!

A good accountant can usually draw out the relevant information with some basic questions, but the more effort you put into the basics, the less time you’ll have to spend on getting what you actually came for – an informed opinion on how you did with your finances from a tax perspective, and advice on how to minimise your taxes going forward.

So in simple terms, your first step in getting the most out of your accountant is to create an accurate and concise snapshot of your finances.

Tap into their networks

>As a small business, it is likely that the accountant you’re using is also working for a host of other businesses. Ask your accountant if they’re willing to initiate networking opportunities between you and other clients. This could lead to business deals, partnerships or a support network of people facing the same problems as you.

Value their advice

Your accountant will have expert knowledge of not only your business but of others like it. This means they can help you uncover ways of expanding your business and reducing your costs, as well as indicating areas where you need to spend more. It’s likely that any problem you face will be familiar to an experienced accountant, so they will most likely know how to solve it. Trust them!

Never lie!

Doctors can save your life, lawyers can save your freedom and accountants can save your livelihood, so always tell them the truth. Accountants need to know every fact about your business so they can work out how much tax you pay and how your business can make the maximum amount of profit. If you lie to them about your finances, this could lead to mistakes in your bookkeeping and possibly even the downfall of your business.

Arrange regular catch ups

Accountants usually have a large number of clients, meaning you can’t rely on them to contact you all the time. You should arrange to have monthly meetings or weekly phone calls with them, allowing you to discuss any problems or ask any questions. If you delay speaking to them and then dump all of your difficulties on them at the end of the tax year, problems may escalate and cause a last minute panic.

Check out our accounting support hub for more help and resources, or to ask a tax question.

The post Five Ways to Get The Most From Your Accountant appeared first on The Cheap Accountants.

You may need an accountant to take care of your bookkeeping and payroll for you, or maybe you’re just looking for some friendly advice.

Either way, you want to consider all your options before committing to anything, and this includes comparing different quotes to ensure you’re getting the best deal. In this article we’ll explain a few things to consider if you’re trying to decide whether an online accountant or a traditional high-street approach is best for you.

What is the difference between online and traditional accounting?

Nowadays, keeping track of your accounts is easier than ever through online accounting. This often makes the whole process simpler and gives business owners better access to their records.

You can still do your accounts the traditional way though – going to see an accountant in-person on your local high street – and for some people it’s the better choice. It all depends on your specific needs.

Let’s go into a bit more detail to help you understand the key differences between online and traditional accounting.

What is online accounting?

There’s sometimes some confusion between online accounting software, and online accounting services.

The software is just that; it’s accounting software which is hosted online using multiple secure locations, as opposed to being downloaded to a single device. This not only makes data more secure, but also more accessible.

You can update your bookkeeping records anywhere (and on any device) as long as you have the login and an internet connection.

This kind of software deals with record-keeping, so you might still need an accountant even if you use online accounts software.

An online accountant is just like any other type of accountant, but rather than visiting them in-person you can talk to them online, by phone, or with video calls.

How does online compare to traditional accounting?

A traditional (or local) accountant won’t necessarily need to see you in-person, but you’re more likely to have the option to do so. This can be good if you prefer to do things like talk about tax face-to-face.

It might also mean you can just drop off your records and receipts, and they’ll turn this into bookkeeping records and then into a proper set of accounts.

Although at this point it’s worth mentioning that most online accountants offer a bookkeeping service, and lots of high-street accountants will provide you with bookkeeping software. The gap between the two is much narrower these days!

Access to software

This access to online software can be incredibly useful whether you end up with an online accountant or a local one, especially if you need to keep financial records digitally so you can comply with Making Tax Digital requirements.

Without it, you’ll have limited access to your accounts and won’t be able to make changes yourself. Instead, you’re relying on your accountant to get back to you and to send you any reports, which can obviously take a bit of time if they have other clients to look after as well.

Should I choose an online or high-street accountant?

Even with a local accountant, you might find that you don’t need to see them in-person all that often – if at all. Even signing documents and carrying out identity checks can be dealt with online, so the real choice comes down to whether or not you feel more comfortable at least having the option to call in on your accountant if you want to.

It’s a very personal choice!

Before committing to that local firm though, just double-check that they do indeed offer in-person meetings. Lots of traditional sectors are moving to an online-first way of servicing clients.

Tips on finding an accountant

Would you believe that in the UK, literally anyone can call themselves an accountant? Yep, the title isn’t legally protected in the UK. Don’t panic though, because there are ways you can spot legitimate accountants.

Making sure your accountant is appropriately qualified

The easiest way to do this is by looking 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).

Now, if you’re a freelancer or have recently formed a new company, you’ll probably be more worried about the price than anything else (like experience, level of expertise, etc.)

This is completely understandable, but you still want to make sure the accountant you pick is qualified to do the job and can be trusted with your sensitive information. Otherwise, it could end up costing you more – in the form of fines!

You also want to find the right accountant for you.

Consider whether you’d be fine with a generalist accountant who covers all the bases, or whether you’d benefit from having someone with specialised knowledge. For instance, if you need a landlord or forensic accountant.

Lastly, you can also just check things like reviews and comparison pages to give yourself a better idea.

Read our guide to finding a cheap accountant.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Online vs Traditional Accounting: Which Is Right For You? appeared first on The Cheap Accountants.