You're probably asking yourself whether now is the right time to hire an accountant.
If you've launched a start-up recently, or you're about to, then the good news is you're not alone.
Many founders soon find themselves juggling competing priorities. This could be product development, servicing new customers, marketing, raising finance, tax, payroll, and managing cash flow - often all at once.
The question isn't whether you need an accountant. It's when, and whether choosing the right one can give your business a better chance of succeeding.
At Wellers, we have over 8 decades of experience helping entrepreneurs build businesses that then scale-up. Some have remained successful, private owner-managed organisations. Others have gone on to secure investment, scale nationally, even internationally, or eventually sell.
Whatever your ambition, making the right decisions early on can really help you on your entrepreneurial journey.
In this guide we explain:
When an accountant is valuable
What they should help you with
How to choose one that's right for your business
What you should budget and expect to pay
In short, yes, and especially if you're serous about growing your business.
Legally you may not need one depending on what phase in your business journey your at, and your skill set. Commercially though it could prove to be one of the best investment decisions you can make.
Let's face it, you didn't start your business because you wanted to become a specialist in tax, payroll, VAT, company law and bookkeeping!
You probably started because you believe you found an opportunity worth pursuing.
These are some of the common mistakes we see first-time founders make:
| Waiting too long to ask for advice | Focusing on profits and sales but not cash flow |
| Mixing up business and personal finances | Trying to do everything themselves |
| Setting up with the wrong structure for their needs | Not setting money aside for making tax payments |
Many entrepreneurs think initially that the role of an accountant is one of pure compliance, namely to prepare annual accounts and submit tax returns.
Of course those things matter, but if that's all your accountant is doing then you're probably missing out on a lot of potential value.
The right accountant can actually act as a business advisor, helping you make smarter commercial decisions right from day 1. That may include choosing the right business structure, setting up accounting software, forecasting cash flow, tax planning, raising finance, understanding performance and your numbers, and avoiding the costly mistakes that can be so common in the early stages of trading and growth.
As your business develops so your accountant should grow with you. Conversations usually move beyond staying compliant towards strategic direction, profit and profit margins, recruitment, investment, and long-term planning.
A good advisor doesn't just report on where your business has been, they help guide you in deciding where it's heading to next.
As your business evolves and develops, the questions you ask will probably change.
In the early days you'd likely be thinking along the lines of how to set up your start-up, what are the systems you'll need to put in place, and getting to grips with the taxes you'll need to pay. A year or so later and you could be looking at securing investment or finance, recruiting your first employee, or planning for how to scale-up.
We've helped founders through every stage and shared that knowledge through these practical posts:
Starting out
Building momentum
Moving into growth
This can vary depending on circumstances but it's probably earlier than most business owners think.
Too many entrepreneurs in our experience wait until they're approaching a first tax deadline, registering for VAT, facing a hefty tax bill, or seeking investment before speaking to an accountant.
The problem is by then many important decisions have already been made.
Our advice is simple, speak to an accountant before you think you need one. Getting the basics and foundations right early on can make life far easier down the line.
Choosing the right business structure, understanding your tax position, putting good financial systems in place, and planning your cash flow from day one can save a lot of time, money, and unnecessary hassle as your enterprise expands.
After all it's often easier to build strong foundations than have to repair them later on.
Sound technical knowledge is of course important, but it shouldn't be the only thing you look for.
Most qualified accountants can prepare accounts and tax returns. The real difference lies in how they support your business in a practical sense, beyond the numbers if you like.
Ask yourself the following:
Do they understand businesses at your stage of growth?
Have they worked with start-ups facing similar challenges?
Will they explain things in plain English?
Are they proactive with ideas and advice?
Can they evidence how they will support you as your business grows and your needs become more complex?
Hopefully you'll work together with your accountant for many years. So, be sure to choose someone you trust, enjoy working with, and feel comfortable asking questions of. A strong relationship today can have a significant impact on the decisions you make tomorrow.
Unfortunately we can't give you a one-size-fits-all answer. It really all depends on your circumstances, what your business needs, and where you are on your path.
A newly incorporated company with straightforward requirements will naturally need a different level of support from a start-up that's shifting into fast growth, recruiting staff, raising investment, or expanding across locations.
Some founders only need support with year-end accounts and tax. For others things are more complex with the need for regular advice and financial mentoring throughout the year. So, the right level of support depends on your ambitions and where your business is at today.
This is why we tailor our services around your circumstances so that as your business evolves, the support you need will likely develop as well. It's also the reason many business owners choose to build a long-term relationship with us, we only introduce additional services when they genuinely need it and can add value to help facilitate growth.
If you're unsure what support you need, we'll happily talk you through the options and pricing before you commit to anything.
For more than 80 years we've helped entrepreneurs turn ideas into successful businesses.
Some have remained profitable owner-managed companies. Others have secured investment, expanded internationally, or eventually sold their businesses.
Whilst every founder's journey is different, the questions they ask are often remarkably similar. In more than 80 years of helping entrepreneurs, we find every founder still asks the same question, 'am I making the right decisions?'
That's why we combine technical accounting knowledge and skills with practical commercial advice, delivered in plain English by people who understand the realities of building a business.
Our role isn't simply to prepare your accounts.
It's to become a trusted advisor who helps you make better informed decisions along the way.
Many of our clients describe that relationship as providing something they value enormously, and we term it, 'Business Oxygen'.
A big mistake we've seen from so many entrepreneurs isn't making poor decisions, rather it's waiting too long to seek advice.
A short conversation early on can help prevent many expensive problems later.
This can include:
Early planning is far more likely to create better outcomes compared to reacting when under pressure.
If you're about to build a new business, or you're in the middle of establishing one, don't wait until something goes wrong before speaking with a business advisor.
Setting up a business is also one of the biggest challenges you'll ever take on.
The upcoming years will likely see you take on hundreds of decisions that will influence the direction your business heads in.
Some may feel straightforward, others will probably be more complex given they will shape your progress.
The good news is you don't have to figure it all out alone.
Having experienced people around you can be invaluable. Advisors who have guided many start-ups before will understand the venture you're on and the challenges you're facing. They can draw on this experience to help you make confident decisions, avoid costly mistakes, and focus your time and energy on achieving what you've worked so hard to create.
Accounting matters, but your ambition deserves more than compliance. It warrants advice that helps your business grow.
Accounting and professional advice can be one of the key cogs that helps you fulfil your aspirations.
So if you've just launched your business then we suggest you review and action the following as a matter of priority.
| Choose the right legal structure | Build a cash flow forecast and profit projections |
| Register with HM Revenue & Customs (HMRC) | Think about funding and if, or when, you'll need to raise finance |
| Decide how you'll keep your records | Find professional advisors you trust |
You're running something you'll likely get very personally invested in. You're building something you hope will grow.
For this very reason accounting, tax, compliance and financial strategy really matter.
The decisions you make over the next few years will shape far more then just how much tax you owe. They'll influence:
So, if you'd like to explore these decisions with people who've helped thousands of founders achieve success, we'd be very happy to hear from you.
Please also be aware that information provided on this page is subject to regular legal and regulatory change. We recommend that you do not take any information held within our website or guides (eBooks) as a definitive guide to the law on the relevant matter being discussed. We suggest your course of action should be to seek legal or professional advice where necessary rather than relying on the content supplied by the author(s) of this website.
