Going freelance in your chosen profession can open up possibilities of a much better work-life balance, more opportunities to expand your skill set and, of course, take care of those financial worries. A common question when going freelance is, do I need an accountant? In this RJF Accounting guide, we will run you through the pros and cons of hiring an accountant when you are freelancing so you can decide if you need one or not.

I Am A Freelancer Do I Need An Accountant

Reasons to Hire an Accountant

A widespread misconception is that accountants are only for big businesses and that if you are a freelancer, you do not need one or shouldn’t hire one. Below are some reasons why, when working freelance, you should consider hiring an accountant.

Accountants Can Save You Money

No really! Sounds backwards, right? You have to pay an accountant, so how can they save you money? Accountants can ensure that your freelance business pays the proper taxes and apply the correct allowances to make your earnings more tax efficient, and you get to keep more of your hard-earned cash!

An accountant will also:

  • Ensure you are making the most of any allowable expenses
  • Ensure your tax returns are filed on time, avoiding any fines
  • Advise you on financial matters to maximise your take-home pay

We have said this in other blogs on our site, but a good accountant can save you more than you pay them. For instance, one missed tax return deadline could cost you more than £1,000 – so right away, those accountants’ fees do not seem so much of an expense!

Save You Time

Time is money, more so when you are freelancing! As a freelancer, you probably charge your clients by the hour, and maximising your billable hours is paramount, so the less time you spend doing admin, the better! A good accountant can save you hours that can be better spent working on client work or, better still, offer more free time to enjoy other pursuits!

Keep You on the Right Side of the Law

Let us be honest for a second; most of us do not have the time to keep up with the changes and shifts in the industry we work in, let alone on top of the tax laws and all that comes with it. An accountant’s job is to ensure that you comply with any rule changes or legislation amendments that you need to be aware of and help you navigate this minefield.

One such recent example that has hit contractors and freelancers in a big way is IR35, which has changed the landscape of the industry. Navigating IR35 is tricky, and the impact of getting it wrong can be severe for the parties involved.

Growth Advice

Accountants do not just crunch numbers; they are also an information resource that can help your business grow. Accountants can spot trends in your cash flow that could cause your business to be losing money; they know about schemes and grants available to help you expand and can offer sound financial advice, which can help you grow and develop your business.

Finding the Right Accountant

Finding the right accountant for your freelance business matters as, unlike larger businesses, you will be working one on one with them, and you need to feel as comfortable working with them as your clients do working with you. Finding an accountant with a strong knowledge of the freelance industry is advisable, and you must feel comfortable being able to approach them and work with them.

Want More Information?

Do you want to know more about how an accountant can help you as a freelancer? Get in touch with the team here at RJF Accounting today! We are a dedicated team of Manchester-based accountants with the skills and resources to help your freelance business flourish!


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