Do I need an accountant If I am self-employed?

Understanding the Accounting Needs of the Self-Employed

When you’re self-employed, you’ll need to pay any suppliers (including utility companies, stock providers, software companies and more). You’ll need to keep track of any business expenditure on equipment, travel and other items or services, as well as predicting cash flow and budgeting accordingly.

You’ll also need to file your tax returns – a process that will be changing with the arrival of Making Tax Digital. You’ll also be responsible for making the necessary tax and National Insurance payments to HMRC.

Managing all of this can be stressful. QAccounting can take that stress and hassle away, giving you one less thing to worry about and freeing up your time to focus on what you do best. For a small monthly fee, we can handle your bookkeeping, give you access to great accounting software, submit your tax return and advise on ways to make your business more tax-efficient. Whatever your accounting needs, we can provide a tailored service to suit.

Tax Filing and Compliance for Self-Employed Individuals

Self-employed individuals must complete an annual tax return. It’s a process that’s designed to be possible to self-complete, but can be tricky if you’ve not done it before – or if your record-keeping is lacking.

To make the process easier, be sure that you’re accurately recording all incoming and outgoing payments, along with dates. Staying on top of your paperwork and invoicing will make filing your tax return far simpler.

There’s plenty of guidance online as to how to complete a tax return, but self-employed accounting services are there to help, too. At QAccounting, we can help you to get an accurate accounting system in place, as well as advising you on completing your tax return – including any areas where tax efficiencies can be made.

Financial Planning and Budgeting

When you’re self-employed, it’s vital that you have a strong understanding of your current financial situation, where it’s headed, any seasonality and your incoming and outgoing payments. Without this you’ll be unable to plan accurately – and may struggle to cope if your situation suddenly changes.

As standard, you should be accurately tracking your income and expenditure, including being aware of any seasonal fluctuations. You should understand where you are spending money, and if this can be streamlined. You should be measuring your profit and loss, setting aside money to meet your tax liabilities, and looking to the future for growth.

When you’re self-employed, all of this is your responsibility. If you’re finding it challenging, an accountant can help. We know that working with contracts rather than a fixed income can make it hard to budget, and can help you go through your finances – and predicted income and expenditure – to create and maintain an accurate budget.

Business Growth and Scaling Strategies

If you’re looking to grow your business, it’s likely that you’ll need to do one of two things: either take on more clients, or take on better-paying projects. You might be looking to raise your rates, or to add additional income streams.

Scaling up can be challenging. You’ll need to change your business plan to account for how you plan to grow. You’ll need to work out if you need extra pairs of hands – and if so, how to change your business structure to account for this growth.

Accounting services for self-employed people can help with all of this. With over 20 years of experience, we’re well-versed in helping people just like you to flourish. Whether it’s helping you to rework your business plan or helping you to navigate HMRC and Companies House as you change your business structure, we’re here to help.

Choosing the Right Accountant for Self-Employed Needs

When you’re looking for an accountant, it can be hard to know how to choose who to work with. Of course, you’re going to want to look for someone with a proven track record and positive client reviews, and someone you get on with – and can trust.

However, qualifications, certifications and experience should also be vital considerations. Check that your accountant is fully qualified and certified by a professional body – and that they’re experienced in working with those who are self-employed. The ins and outs of accounting services for self-employed people are very different to those of larger businesses, so you’ll want to work with someone who’s experienced in accountancy for self-employment.

At QAccounting, our tailored self-employed accounting services are designed with YOU in mind. We can help with everything from tax returns to bookkeeping, offering you a dedicated Client Manager and accountant who can make sure your business is operating as efficiently and accurately as possible. Find out more here.

The Role of Accounting Software for the Self-Employed

Using software-based accounting services for self-employed individuals has several benefits – but it can’t do everything.

Software can help you reduce the amount of time spent on admin, giving you more time to grow your business. It can reduce the risk of human error, syncs all your financial data and gives you insights into your finances.

It’s a solution that might suit some. However, if you’re not completely confident that you’re doing things right – or if you’re not sure if you’re making the most of tax efficiencies that could save you money – speaking to an accountant who specialises in self-employment is a must.

Common Accounting Challenges for Self-Employed and Solutions

There are many financial hurdles that you could face as a self-employed person. One of the biggest can be the lack of predictability: fluctuations in income which can vary depending on seasonality, your clients’ budgets, the wider economic situation and more.

This can make it tricky to budget. It can also make it challenging to ensure that you’re able to pay your suppliers and debtors, and to make sure you have enough to put aside for tax and National Insurance payments.

QAccounting is here to help. As accountants for self-employed workers, we’re highly experienced in helping you to navigate all of these challenges – and more. If you’re looking to make your self-employment journey as simple as possible, our trusted, tailored accounting services can help. Contact us to find out more.