Why Freelancers Need Accountants Too

Accountants for freelancers are an extremely useful source of knowledge and advice, especially as most people are not very confident in being entirely responsible for their accounts.

There are many myths surrounding freelancer accountants, many people believe that it is a luxury that they cannot afford, or that they are just there to fill out forms and keep the tax man happy.  However, an accountant can do much more than this and can even save you money with their in-depth knowledge.

Why have a freelancer accountant?

There are many different reasons why you may benefit from having an accountant for your limited company:

Make sure you’re doing it correctly.  Sometimes doing your own accounting can be a daunting task.  You need to make sure that it is done right, otherwise you can get into trouble with HM Revenue and Customs.

This is where having an accountant can be extremely useful, as you can be confident knowing that your tax return and any other documents will not only be filled out correctly, but will also be done in time.

Save you time.  If you don’t really know what you’re doing when filling out the various necessary forms, then it could potentially take up a lot of your time.  A contractor accountant will be able to do this more efficiently, saving you the time to work on your business and earn money.

Tax planning.  This service is one the biggest advantages of have contractor accountant.  A good accountant will be able to legally minimise your tax bill, saving you money, which will essentially mean that the service will more than likely ‘pay for itself’.

By having a contractor accountant, you will be able to take advantage of the ever-changing tax laws, which will mean that you will pay as little tax as possible.

How to choose an accountant

It is best to take on an accountant that specialises in working with freelancers, so that they will be able to offer you the best possible advice, which will suit you and your working practices.  It is very important that your accountant understands the ins and outs of how contractor tax works and knows how to advise you properly.

You should also consider whether your accountant has any awards to back up their claims, such as great customer service or accountancy excellence; and check if there are any additional costs involved that you may not be initially aware of, as well as ensuring that you are able to meet your accountant if you so wish.

As long as your limited company accountancy firm meets all of these requirements, you can rest assure that your finances are being taken care of properly.