Why Does A Contractor Need An Accountant?

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Being a contractor can offer you great flexibility and more control over your career. However, it can also be very time-consuming, with money and taxes to juggle and keep track of. Most contractors are now turning to accountants to manage their finances. This means more time spent doing what you do best!

Time-saving

It is undeniable that an accountant will save you time. As a contractor, the majority of your time should be taken up perfecting your trade and getting work. By outsourcing your finances to be managed by someone else, you are able to free up your time. 

Accountancy is time-consuming and complex, especially when you’re attempting to carry out your day-to-day operations at the same time. To be compliant, you’ll need a thorough understanding of accounting legislation – as well as the ability to keep up with any updates in the financial world – which might eat up a lot of your time.

Doing your own bookkeeping can almost feel like a full-time job in and of itself, especially if you’re not a numbers person. Contractor accountants, such as those at Steele Financial, can advise you on all things tax-related and handle all of your financial administration for you.

Builder or contractor working on a building site

Bookkeeping and Accounts Support

Working for yourself offers you complete control over your work. However, this doesn’t mean you have time and effort to devote to bookkeeping. By outsourcing this, you can forget about the folders of paper tax reports and invoices. Most accountants now use online bookkeeping services that are easily accessible for you and your clients.

At Steele Financial, we work with Xero, an online accounting software, to make your bookkeeping easy and so that you can keep on top of your financial information remotely, in real-time, and on the go. Training is also available for those switching to using an online bookkeeping system, to ensure that you also understand how to use it. 

Tax Management 

Another advantage of hiring an accountant is that they can assist you in maximising your company’s tax efficiency. Contractor accountants have a lot of experience managing accounts, and they can analyse your small business’s expenses and incomings and provide you with advice on how to increase earnings. Your accountant can also assist you with your business’s share structure and the appropriate tax-deductible expenses that you may be qualified to claim. In the long run, this tax management could help grow your business due to greater strategic-decision making and financial planning.

It can also be time-consuming to deal with HMRC. Having an accountant will make this easier as any enquiries or issues with missing data can be dealt with through them. 

Builder or contractor walking across a building site

Up-to-date on the latest legislation

​​We understand the challenges and confusion that you face when moving from employed to self-employed. With changes to UK legislation and tax changing on a yearly, and often monthly, basis, an accountant can steer you in the right direction. This will ensure your finances are safe and secure and that your tax bill is reduced. Staying compliant with the latest law or deadline is vital for maintaining a good reputation and staying free of penalties.

The complexity of some of the rules and regulations means that most contractors simply don’t have the time to read and digest all of them. When you’re already busy establishing your business, staying on top of everything can be difficult. Hiring an accountant to handle all of the paperwork for you is usually the best option. 

How can Steele Financial help?

At Steele Financial we have years of experience in accounting for freelancers and the self-employed as well as limited companies. If you want to find out more about how we can help you save time and alleviate stress by putting your finances in our trusted hands, talk to us.

Make accounting easy

Whatever your accountancy needs, we are here to take care of everything, reducing the time and effort you need to spend on your books.

Find out if we can help you

Steele Financial Pattern

About Steel Finanical

We are a team of certified chartered accountants with over a decade’s experience helping businesses reach their full potential.

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