If you’re a freelancer, you’re probably an independent type who is used to doing everything yourself.
But extending this DIY mentality to your accounting might not be the best decision.
Let’s look at some of the main reasons why we think every freelancer needs the support of a good accountant.
They’ll help you get organised
Starting a business from scratch can be a messy, stress-filled process. Whether it’s purchasing stock or materials, training or building your customer base through marketing, it’s easy to let bookkeeping fall by the wayside.
After a busy few days, it’s not uncommon for frazzled freelancers to take one look at their accounting spreadsheets and think, “I’ll catch up next week”.
Of course, this is dangerous territory as ‘next week’ is likely to be just as busy as this one.
Working with an accountant will ensure the accounting process is streamlined and always up-to-date. Working with cloud-based accounting software which interfaces both with HMRC systems and your bank account to record transactions, track bills and even issue invoices, your accountant has sight of every area of your business and will ensure everything’s ticking over as it should.
Plus, you’ll never miss a tax deadline as your accountant will prepare and even submit your Self-Assessment on your behalf.
They’ll help you make the most of allowances
An accountant can help you take advantages of available tax reliefs that the average layperson won’t be clued up on.
For example, in some circumstances, involving a spouse in your enterprise can help bring your tax bill down. This might not be the right choice for you, but there’s likely to be various other tax reliefs out there that you’re entitled to take advantage of.
An accountant can also help you manage gaps in your cash flow due to bad debt. Paying more tax than is necessary can be a death sentence for a fledgling freelancer business, but with the help of a professional you can ensure that you won’t pay tax on income that you’re yet to receive at year-end.
There are also certain grants that you may be eligible for, such as if your freelancer business qualifies as a start-up. With an accountant you won’t need to waste time scouring the HMRC website looking for these – you accountant will bring them to your attention.
Speak to one of our accountants
If you're a startup or existing business wanting to learn more about our services, get a quote below or contact our friendly team for more information.
They’ll make sure you claim all allowable expenses
Every freelancer knows they’re entitled to certain business expenses – but you probably don’t know everything that’s eligible for pre-tax deduction. Again, this could mean freelancers end up paying more tax than they need to.
Luckily, accountants for freelancers have a comprehensive knowledge of what is tax-deductible. They can also help you out with those ‘grey areas’, such as travel and motor expenses when you use a vehicle for both personal and business purposes, as well as tax planning for the future such as advising on the most tax-efficient way to purchase a new vehicle for your business.
They’ll free up your time
You’ve got countless things on your to-do list, but accounting doesn’t need to be one of them.
Freelancing can be intense and time-consuming. In fact, it might not be unusual for you to find yourself working around the clock to deliver a project or order.
This may come with the territory of being a freelancer, but contrary to popular belief, you don’t need to burn the candle at both ends to succeed.
Outsourcing your accounts will free up valuable time, which means that the time you spend at work will be spent on the actual job in hand. Whether you’re a hairdresser, plumber, writer, baker or designer, your time is best spent doing what you’re good at – not to mention what you make money from. For more information, please contact our friendly team!
Chancellor announces that IR35 reform will be scrapped
IR35 reform in both the private and public sectors is to be repealed, the Chancellor announced in the mini Budget, held on Friday 23rd September.
This surprise development made up just one of many welcome tax changes, as Liz Truss’s new-look government promised to start “a new era” and unleash the potential of UK business.
Why is accounting for a start-up business important?
Why do some start-ups succeed while others are doomed to fail?
It’s an often-quoted statistic that around 60% of businesses fail in their first three years – with 20% folding within just twelve months.
Why freelancers should hire an accountant
In the world of work, freelancing is an increasingly popular option. The promise of flexibility, unlimited earning potential and complete control over the way you work is a hugely attractive prospect for many.