The Ultimate Accountancy Services Guide
Don’t know where to turn with your business’s accounts? We’ve got you covered. Don’t know where
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The Ultimate Accountancy Services Guide
Don't know where to turn with your business's accounts? We've got you covered.
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The Ultimate Accountancy Services Guide
Don't know where to turn with your business's accounts? We've got you covered.
Owning your own business is an exciting opportunity, doing what you want to do, working for yourself, and all the benefits of that. Do you know what isn’t exciting? Doing your own accounting.Â
It’s tedious and dull, and one wrong number can land you in a world of trouble.
Outsourcing to a professional accounting service can take all of that off your plate and help keep you focused on the other areas of your business that need your attention.Â
Don’t know where to start? Well, you’re in the right place because you’re about to learn everything you need to know about business accounting.
What is Outsourced Accountancy?
Outsourced accountancy is, as the name suggests, when you outsource your commercial accounting needs. This can be done by an external professional or a firm specialising in business accounts. Depending on their services, this can be anything from bookkeeping to payroll and everything in between.Â
What Can Outsourced Accountancy Help With?
Ok, now that you know what it is, let’s find out exactly how outsourcing your accounts can help your business. Below, we’ve put together nine services that you can expect to see from external accountants.
Bookkeeping and Financial Accounting
From financial transparency to navigating the complexities of HMRC compliance (get used to reading those words; they’re coming up a lot), bookkeeping covers multiple bases. Professional accountants provide a range of bookkeeping services that include:
- Tax preparation and compliance
- Record and monitor cash flow.
- Process payroll.
- Handle accounts payable
- Send invoices and accounts receivable.
- Prepare financial statements.
- Record transactions.
- Prepare books for an accountant.
- Track expenses.
- Reconcile statements.
- Improve cash flow.
- Monthly reporting, giving you an insight into your financial health.
As you can see, bookkeeping alone is a huge task. But if you outsource it to professional accountants, that’s not your problem. In fact, this can save you up to 10 hours per week, which you can spend focusing your efforts elsewhere in your business or just spending time with your loved ones.
Speaking of saving, did you know that SMBs nationwide could be losing as much as £742 each month from poor expense tracking? Don’t be one of them; hire professionals to do your books instead!
Tax Planning and Compliance
Tax planning involves strategically organising your finances to minimise tax liabilities while complying with HMRC’s strict regulations. This way, you can improve cash flow, increase savings, and keep your business in a healthy financial position.
Compliance is where you ensure that you adhere to all relevant laws and regulations, including on-time and accurate filing of tax returns and paying any liabilities. If you fail to do so, you’ll be slapped with financial penalties and the risk of an audit.
Outsourcing tax planning and compliance to professional accountants can help with numerous tasks, including:
- Corporate tax compliance.
- Tax accounting under UK GAAP and IFRS.
- Advice on switching to quarterly instalments.
- Incorporation planning (Company, Partnership, and Self-Employed Tax Comparisons).
- Capital gains tax mitigation.
- Inheritance tax mitigation.
- Offshore pension planning.
- Corporation tax mitigation.
- Employee remuneration.
- Profit extraction.
- Correctly file tax returns.
- R&D tax credit support.
- Optimise group planning to get maximum tax returns.
- Tax risk management.
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VAT Returns
Did you know that you could be fined up to 30% of your tax bill if you made just one mistake filling out your VAT return forms? So if you owe £1,000, you’ll owe an extra £300, all because you ticked the wrong box.
Well, don’t stress; most professional accountants know VAT returns like the back of their hands. They’ll expertly navigate the HMRC minefield, making sure that all your i’s are dotted, t’s are crossed, and your forms are submitted on time. Sleep soundly at night, knowing that you’re in safe hands and no unnecessary fines are coming your way, all while maximising any refunds.
Monthly Management Accounts
Monthly management accounts are a set of documents that are collected each month (who saw that coming?). They’re designed to give you an in-depth, up-to-date look into your business’s financial health. They’re intended strictly for internal use and allow you to carry out day-to-day decision-making better.
These reports will often have essential information, including:
- Profit and Loss Statement.
- Balance Sheet (Assets, Liabilities, and Sources of Finance).
- Cash Flow Statement.
- Financial Key Performance Indicators (KPIs).
- Income Statement.
- Budgets and Forecasts.
- Cash Flow Position.
Statutory End-of-Year Accounts
Statutory accounts, financial accounts, annual accounts, or year-end accounts. Whatever you call them, they’re all the same thing. Outsourcing to professionals can help ease this tedious task.
You need to submit these within nine months after your company’s year-end date to Companies House. If you fail to do this on time, then it once again will result in financial penalties. Depending on how long you’ve left it, this could be up to £7,500.
These accounts will contain:
- Profit and loss.
- Balance sheet.
- Notes about the accounts.
- A director’s report (unless you’re a micro-entity).
Payroll Management
If you don’t pay your staff, they’ll stop showing up very quickly. And without your staff, you have nothing.
Payroll keeps your staff paid and manages any bonuses, deductions, and taxes like National Insurance. This is even more complicated if you have mixed staff, like those on hourly, a fixed wage, PAYE, etc. And this is before you even begin to think about all the regulations you have to follow.
If you outsource just one part of your accounting, let it be payroll. We promise you’ll thank us later for it.
Corporation and Partnership Tax Returns
As a business, you are responsible for calculating and reporting your tax liabilities. This includes an annual Corporation Tax Return (CT600) within 12 months of the end of your accounting period. Not keeping on top of these means an initial £100 fine, which can quickly snowball to additional penalties and interest.
If you’re a new business, you must register for corporation tax within three months of starting activities. If you’re closing up, then you need to deregister as quickly as possible. This process has recently changed to the Making Tax Digital (MTD) initiative, which means all filings and payments must now be submitted electronically.
That doesn’t sound complicated at all, does it? Probably best just to outsource it then.
Self-Assessment Tax Returns
The joys of being self-employed. No boss constantly on your case, control over how you work, and the ability to have a mid-day nap if you like. And then it’s all ruined when it’s time to do your self-assessment.
If you earn through the PAYE system, you need to work out your income and expenses every January. Filing late means a £100 fine within the first 3 months, which increases as time goes on. You have to file your self-assessment by 31 January or 31 October if you’re filing by paper.
And when we say “you” in this context, we mean the outsourced accountant you’ve hired.
Audit and Assurance Services
Audit and assurance services provide your business with an in-depth financial examination and verification, giving your stakeholders confidence in your financial health and reporting. Hiring an accountant brings in a professional with a wealth of knowledge, ideally within your industry, to handle all of this on your behalf.
Look for ones that include these as part of their services:
- External Audit
- Financial Reporting Solutions
- Governance, Risk and Compliance
- IFRS, US GAAP, and International GAAP
- UK GAAP and Narrative Reporting
- Internal Audit and Risk Assurance
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Benefits of Outsourcing Accountancy Services
Apart from taking away the incredibly boring task of filling out a bunch of forms, outsourcing your accounts has loads of great benefits. Below, we’ve named eight ways this can help your business.
Cost Effective
The average salary of an accountant in the UK is £37,214. Then there are benefits, pension contributions, training and equipment costs to consider. Also, what happens if, after a few weeks, you realise they’re not a culture fit, and you have to start the hiring process all over again?Â
Depending on what services you require, you can expect to pay £100–£300 per hour for outsourced accountancy, although cheaper options are available. This might seem like a lot for an hourly rate, but the amount you’ll save compared to having someone in-house is pennies.Â
For smaller businesses, you may find that pay-as-you-go deals are better suited to your needs. Instead of an annual contract where you pay monthly, you will only pay for the services you need when you need them.
Although per-service will typically be more expensive, their flexibility is a great advantage. They’re perfect for seasonal businesses with fluctuating accounting needs and are scalable, as you can easily increase or decrease your service levels.
Accountancy firms rely on a range of tools and software to guarantee accuracy and speed. Xero, QuickBooks and Sage are all examples of the tools they use. Sage 50 Accounts Professional starts at £199.99 + VAT, and that’s going up by 8% from April 2025. You won’t be forking out on software costs each month when you call in the pros!Â
And just think of all of those HMRC fines and penalties you won’t have to pay if you let the experts handle it all.
Access to Experts
If you’re a self-employed electrician, then you probably don’t know too much about the intricacies of UK business tax laws. Or maybe you read about this kind of stuff for fun. If you do, fair enough; we all have weird things we like.Â
However, professional accountants do have this knowledge. They can easily navigate the complexities of HMRC without getting fined because they know that you need to put an X and not a ✓ in section 374 A of a tax return form 12.
UK tax laws are ever-changing. Do you really have time to sit around and stay updated on the slight wording change to complex financial regulations? No, you don’t—Leave it to the experts to keep on top of that instead.
Larger firms may operate in multiple sectors. This can give you access to specialists with expertise in your particular industry. Some sectors like construction and healthcare have to follow extra regulations, so having someone who knows there is a massive benefit.
Save Time
The average small business owner spends 120 hours a year bookkeeping. Think of all of the things you could be doing that’s a better use of your time than that. Spending time with your family, in the pub with your friends, or finally playing that guitar you bought last year that now collects dust in the corner.Â
Then you have to carry out all the other tedious, time-consuming and confusing tasks. This is all time that could be better spent elsewhere while you let the pros do it all for you.Â
Improved Compliance
How many times have we already mentioned HMRC fines and penalties for breaking compliance? One wrong move, and all of a sudden, you’ve found yourself on the wrong end of a series of penalties. But it’s not just submitting documentation that accountants can help with.Â
You’re required to follow laws like Making Tax Digital (MTD), GDPR, and anti-money laundering (AML) regulations. Breaking these can cause severe financial, legal and reputational damage to your business. Make sure this doesn’t happen to you by outsourcing to professionals.Â
Some businesses will also have to follow industry-specific regulations. CIS for construction and NHS requirements for healthcare providers are just a couple of examples of industries in which specialist accountants can help.
Enhanced Financial Accuracy
Professional accountants have an arsenal of advanced tools and software at their fingertips. This helps speed up the process and minimises the risk of human error. And you know what happens when you make a mistake on your HMRC documentation by now, don’t you?Â
Cloud accounting tools allow you to access key metrics without even contacting your accountant. Expenses, revenue, and cash flow can all be easily tracked in real-time, giving you a 360-degree view of your finances.Â
Scalability and Flexibility
No matter your needs, there’s an accounting firm for you. Over the years, these firms have realised that there’s not a one-size-fits-all solution for all businesses. These more flexible accounting models allow you to cherry-pick services and scale them to fit your business needs.Â
If you run a seasonal business, these models are perfect for you. Those in the tourism, hospitality, and retail sectors can outsource their accounting tasks during off-peak periods for maximum efficiency and cost savings.
Strategic Insights and Decision-Making
Professional accountants provide you with unrestricted access to their insights and expertise. These can help you focus on profitability, cost control, and growth opportunities.Â
Scenario planning evaluates the potential outcomes of potential financial decisions. Expanding operations, new product launches, tapping into new markets. Whatever it is you’re looking to do, these strategic sessions with professional accountants can help you weigh up the pros and cons and financial viability of your next move.Â
Cash flow forecasting helps with any future expenses and investments, reducing the risk of shortages.
Increased Financial Confidence
Accurate financial reports prepared by professionals help your business build trust with current investors and stakeholders. Attracting new investment has also just become a lot easier. Transparent, precise and professionally managed finances are a much more attractive proposition than those without.Â
Consistent Support and Expertise
Some firms will come with your own dedicated team that handles your business needs. This allows you to always have a familiar reference point when dealing with them and offers continuity even if your internal team changes. Rapport-building lets them get into the nitty-gritty of your business, your roadblocks, and your aims, allowing for a more personalised approach.Â
You’ll also be informed of any changes to laws or regulations and the steps you must take to adhere to them as a business.
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Key Considerations When Selecting an Accountancy Firm
Not all accountancy firms will offer the same services. Like most things with your business, some firms will be better suited to meet your needs than others. Below are things to consider when making your decision.
For some industries, generic accountants/firms will be fine. However, for others operating in more niche markets with extra regulations, it may be best to seek out those who are well-versed in your sector. Here are a few industries and how specialised advice can help.
Healthcare Â
- Navigate NHS funding requirements and comply with specific supplier standards.
- Manage budgets and financial reporting for grants or public funding streams.
- Track and optimise payroll for large staff bases, including doctors and auxiliary staff.
Retail
- Handle high transaction volumes across multiple sales channels (e.g., e-commerce and in-store).
- Accurately manage inventory valuation, shrinkage, and seasonal stock levels.
- Streamline VAT reporting for any sales to mainland Europe under post-Brexit regulations.
Manufacturing
- Monitor and control costs for raw materials, production processes, supply chain management, and post-Brexit importing/exporting regulations.
- Analyse operational efficiencies through cost-per-unit metrics.
- Prepare detailed reports for large-scale investment or project financing.
Construction and Real Estate
- Handling complex tax implications, such as VAT on property transactions and reverse charge VAT.
- Manage project-based accounting to track profitability across contracts.
- Support compliance with the Construction Industry Scheme (CIS).
Technology and SaaS Businesses
- Optimise R&D tax credits to reduce tax liability.
- Set up subscription-based revenue models and deferred revenue reporting.
- Navigate global tax laws for cross-border software sales.
If you’re in doubt, just ask them. Remember to ask for any specific examples of clients within your industry and how they’ve benefitted from their services.
Technology Integration
Advanced accounting tools can save time, reduce errors, and provide real-time financial insights. Accountants will have access to a range of different tools that you can also use. Make sure you ask them about what they use and if they offer any training so you and your team can make the most of them as well.
Software Compatibility: Ensure the firm uses tools that are compatible with your current systems. This could be connected directly to your POS system, inventory or CRM systems for quick and easy data sharing.
Cloud-Based Platforms: Firms using cloud-based systems allow you to access all of your data in real time without having to go through your accountant first. Providers like Xero will also include increased security to keep your data secure.
AI and Automation: Some firms use AI-powered tools to automate repetitive tasks like invoice processing, expense categorisation, and bank reconciliations. This will help reduce their time on your tasks as well as the price you’ll pay for their services if you’re billed hourly.
Forecasting and Analytics Tools: Tools like Futrli help generate detailed forecasts, scenario analyses, and KPIs to help you with key decision-making.
Reputation and ReviewsÂ
Trustpilot, Google Reviews, and Glassdoor are all great places to check out what customers are saying about these businesses.Â
Remember to take what you read here with a pinch of salt because you’re always going to get one or two people who just love to complain. But if you notice recurring comments (both good and bad), take these seriously.
If they have any case studies they can share with you, this is a great way to gauge their reliability.
Be sure to ask about their professional certifications and accreditations. Some common ones to be aware of include:Â
- Association of Accounting Technicians (AAT)
- Association of Chartered Certified Accountants (ACCA)
- Chartered Institute of Management Accountants (CIMA)
- Institute of Chartered Accountants in England and Wales (ICAEW) – ACA Qualification
- Chartered Institute of Public Finance and Accountancy (CIPFA)
- Certified Internal Auditor (CIA)
- Certified Information Systems Auditor (CISA)
Communication and AccessibilityÂ
If you have a dedicated account manager, you’ll benefit from a more personalised service and build a rapport with someone who knows your business inside out. You’ll also have someone you can go to when things go wrong and need a quick resolution.Â
Quick response times are essential, especially during tax season or when adapting to regulatory changes. Remember to check out the online reviews to see what their past and current customers are saying about this.Â
How often will you receive updates from them, and how? Weekly, monthly, quarterly? Video calls, emails, over the phone, in-person meetings? Make sure you find a firm that offers your preferred communication method.
Pricing and TransparencyÂ
Pricing can vary between different firms, so transparency is absolutely key here. Payment can be a monthly or annual flat fee, hourly or per service. Before signing up for anything, make sure you understand how you are paying and if it works for you.Â
Check that there are no hidden fees involved. Always request a detailed pricing proposal that outlines what’s included. Reputable firms should have no problems being upfront about their costs.Â
And we know this seems obvious, but make sure you can actually afford it before signing up.
How Can I Get an Accounting Service for My Business?
Hopefully, that’s cleared up some questions that you may have about how hiring an accounting service can help your business.
Now, the one you most likely have is, “How can I get an accountant for my business?”Â
Well, the process couldn’t be more straightforward; all you have to do is start our form by answering the question below, and then, based on your answers, you’ll receive a range of business accountancy quotes tailored to your specific needs.
This is a free service, and there’s no obligation to commit. Don’t like what you see; just walk away without spending a penny.
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FAQs
What is business accounting?
Business accounting involves tracking, analysing, and managing a company’s financial transactions, including income, expenses, taxes, and financial statements, to ensure compliance, profitability, and informed decision-making.
How much does business accounting cost?
Obviously, this will largely depend on the work you want an accountant to do and how long but, to give you a rough estimate, typical costs can be found below:
One-off tasks: £25–£100/hour.
Specialist services: £125–£250/hour.
Comprehensive packages: £60–£600/hour.
What are the benefits of outsourcing my accounts?
Outsourcing saves time, ensures accuracy, reduces overhead costs, provides expert advice, and allows business owners to focus on growth.
How can I get an accountant for my business?
Tap the button on the left, answer a few questions, and receive tailored accountancy quotes for free with no obligation to commit.
