Contractor Accountant

Why UK Freelancers Really Need An Accountant?

Why UK Freelancers Really Need An Accountant?

Freelancers are self-employed workers who work on free schedules, most often working for several clients at one time. As a freelancer, you might find it easy to get opportunities to work, but certain aspects of freelance work might be challenging, especially managing finances.

Keeping their finances in order is a tough job for many, and freelance workers are no exception. Most freelancers live under the assumption that they are equipped to handle their money matters themselves. They also believe that hiring an accountant is expensive and unnecessary. Although hiring an accountant will cost you money, a good accountant will help you save your money, improve your savings, and lower your expenses in the long run.

Contractor Accountants also give you invaluable investment ideas, business development, and financial tips, in addition to helping you with your taxes. If you already have an accountant and you are still not getting better advice then consider to switch an accountant.

5 Reasons Why Hiring an Accountant will help Freelancers

1. You’ll have an accountant and a business advisor

One major misconception about hiring accountants is that most of us assume that accountants only handle taxes and bookkeeping requirements. In fact, accountants do much more than just bookkeeping. Accountants can help you achieve your career goals much faster. You’ll be able to make use of their knowledge in investments and business development. Once your freelancing career takes off, you’ll be receiving invoices from several clients, and income collection can become tiring. A good accountant will help you keep your finances to have a hassle-free freelancing career.

2. They’ll Save you Time and Money

Collecting payments, collating all your receipts, frantically searching for your papers to file your taxes can get really overwhelming – especially when you do it at the very last minute. That’s why you need an experienced accountant who can help you bring your financial affairs in order. In case you charge your clients per hour, you are effectively bringing in income every hour. If you try to track these receipts, you’ll spend much more time collecting invoices than working on getting paid. The right thing to do would be to allow a professional to do your books to spend time improving your business.

3. A Good Accountant can Reduce your Stress

A freelancer’s work might sound all fascinating and exciting, but it is not without its fair share of ups and downs. As a freelancer, you are used to the oscillating rhythm of the workload. One week can see you scrambling to get the work done on time, and the following week might leave you wondering where your next meal is going to come from. And you’ll constantly be juggling between finding work, completing it on time, and marketing yourself for the next job. The last thing you’d need is the added stress of filing taxes on time. Engage the services of an accountant and let them make filing your tax returns their duty.

4. They’ll Help with Your Taxes

Some freelancers avoid engaging an accountant because of their fees. However, hiring one will help you save much more money than you’d spend on the accountants. Filing for tax returns can be a daunting task. But the accountants know the tax laws inside out. They know exactly what expenses you can claim, how to file for taxes, the deadlines, and make sure you don’t pay late charges. Moreover, accountants help you in tax planning and give you ideas to save money on taxes. These strategies are legal and can, in turn, improve your financial status.

Another advantage of having an accountant is they can help you take advantage of the changing laws. They keep themselves updated with the latest in tax legislation, which can come in handy for you.

5. You can Avoid Uncomfortable Conversations with the HMRC.

As a freelancer, you’d be interested in meeting new clients and getting new work contracts. However, if you do not have your finances in order or haven’t paid your taxes on time, you are sure to spend some time answering uncomfortable questions from the HMRC. With a good accountant, you can be sure of paying your taxes on time without inviting late penalty charges. And an accountant will also be able to handle all your communications with the HMRC should you receive any. Lastly, HMRC is unlikely to investigate freelancers who have filed their returns on time and whose financial affairs are overseen by accountants.

Wrapping Up

The message is loud and clear – if you are a freelancer, it is not a choice anymore to engage the services of accountants. It is becoming more of a necessity rather than an option. With the help of accountants, you can continue achieving your career goals effortlessly while they manage your finances and taxes for you.

It is advisable to make enquiries for reliable accountants in your local area or search online. Accountants are trained professionals in taxes and finances, and their expertise includes working with freelancers. Call on 020 3500 2646 to discuss further.

About the Author:

Nik Patel , A specialist accountant and tax adviser for freelancers, contractors and small businesses. Expert in business growth and development strategies. A renowned tax expert for owner managed businesses and contractors.