Do Freelancers Need an Accountant?
It’s a good question to ask, especially when you’re starting out and trying to save money but yes, at The Kelvin Partnership, we believe that freelancers do need accountants!
Time is precious
You know that you’re good at what you do, and that’s why you chose to become a freelancer! As a freelancer, the likelihood is you charge an hourly rate for your time and this is how you make a living. Time is precious to everyone but especially to those who are charging by the hour! If you’re spending the time you could be working on accounts, you could be missing out on opportunities to generate more income. Every hour that you spend on accounting (and let’s face it – it’s not an easy task!) – it’s actually costing you at your hourly rate.
If you’re going to do it, do it right!
As a freelancer just starting out, you likely have a fairly simple business model and you could be forgiven for thinking that accounting for freelancers is just a case of filling in a tax return and other documentation, by yourself and sending them off. But are you completing them properly? And will they arrive on time?
If you completely a document incorrectly, the best that can happen is HMRC will send it back to you but this could lead to the documentation arriving late. Missing deadlines for tax returns can result in fines or at worst, your forms being sent to a tax inspector who will inspect your finances in minute detail – a stressful experience that you could definitely do without!
By using an accountant, you can rest safe in the knowledge that the right forms will be completed, at the right time and in the right way.
If you don’t think that you are pressed for time and you are confident in your abilities in filling in forms, or have software at your disposal to help you out, there are still many ways that you can benefit from utilising the services of an accountant!
You may be able to complete the forms correctly but doing so in a way that is going to save you money is something your accountant can help you with! A good accountant will ensure that you’re taking full advantaging of changing tax laws so that you pay as little tax as possible. Tax planning is a huge advantage of hiring an accountant.
Tax planning is far more than just preparation. Your accountant can work with you throughout the year to offer advice in order for you and your business to take advantage of the biggest tax advantages. This is a much better approach than getting to the end of the financial year and realising all the opportunities you missed out on if only you’d known or done it differently.
As well as this, when you’re a freelancer, your personal finances directly correlate to your business finances and an accountant can offer advice throughout the year as well as the two are so closely paired.
Finding an accountant
At The Kelvin Partnership, we offer a specialised accounting service to freelancers. We can work with you to manage your finances, minimise your tax spending and offer financial advice for you and your business. To find out more about what we can do for you, get in touch