Hire freelancer accountants for small businesses

Freelancers usually work for a short time in businesses, but they can offer more services and expertise than you might think. However, the cost of hiring accountants for small businesses can be a luxury when on a tight budget. But, freelancer accountants have an equal level of expertise at reasonable rates and are available whenever you need them.

If you are wondering whether hiring freelance accountants in business is a good choice, keep reading the comprehensive guide.

Table of contents

●  Should I hire freelancer accountants in business?
●  What to consider when outsourcing to freelancers?
●  How to hire a freelancer accountant?
●  Conclusion

Should I hire freelancer accountants in business?

Accountants in any business assist in keeping its backbone straight. Their usual tasks include advising on business structure, bookkeeping, VAT returns filings, annual accounts, tax return preparation, cash flow,  self-assessment tax returns, and providing critical intelligence to make sound decisions as a freelancer.

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Hiring accountants for freelance small businesses with limited transactions and straightforward finances is not mandatory. In the UK, you can claim the charges of an accountant on your self-assessment tax returns, which means having them is a good choice.

Why freelancer accountants?
Here are a few reasons why to hire freelancer accountants:

1.  They can seal the gaps
Small businesses often have occasional accounting needs when they require professional help, like preparing self-assessment tax returns. Freelancers can serve your immediate needs; you don’t need to keep them in business throughout the year and pay a fixed salary.

2.  No burden of employer commitments
As an employer, you have specific commitments to your staff. Hiring in-house professionals urge the need for employee benefits like paid sick leave, maternity leave, health benefits, etc. However, you aren’t responsible for anything like that to freelancers.

You pay them a monthly retainer, hourly fees, or flat rates per project or service. Plus, you need to worry about their tax code, National Insurance contributions, pension contributions, etc.

3.  They don’t need you every time
Any successful freelance accountant has the skills of autonomous working, where you won’t hear from them unless there is a query in the course of work or reporting their progress. You need to give a briefing on your business and accounting requirements initially.

4.  They use their resources
You don’t need to have a separate setup for accountants in business. Freelancers have their own working space, machines, software, and everything required for smooth working.

5.  They are experts
Most freelancers have previous experience working with top companies before starting as a stand-alone business. Therefore, they have similar qualifications and expertise to any other in-house accountants.

Outsourcing to freelancer accountants exposes you to better possibilities at lower costs. They can help you in every way possible to keep the business on top of accounting.

6.  They offer flexibility
Freelancers don’t have a fixed schedule and mostly use cloud accounting software to work and connect with clients. This ensures you can connect them anytime you need and from anywhere. They offer better connectivity and efficiency in workflow.

7.  You save time and money
Like all other accountants, a freelancer fulfills all your accounting needs as asked at a fixed price or an hourly rate. This frees up your time from handling books and focusing on core business activities, thus increasing productivity. Plus, you don’t pay them a salary throughout the year even when they are not needed or pay employee benefits, so saving money.

8.  You can choose from a larger talent pool
Most freelancers work remotely, usually from home, so that they can help you with accounting tasks from anywhere in the world with a good internet connection. This means you are not limited to your location while hiring a new accountant and reach out to the top talents worldwide.

What to consider when outsourcing to freelancers?

Before outsourcing to freelancers, you need to plan the process carefully. It takes time and effort to make the right decisions. Businesses must acknowledge a few things before outsourcing their accounting tasks to freelancers, like

● Identifying your business requirements: What do you need? When do you need it? And how long do you need it?
● Selecting the right person: Qualification, experience, specialisation, costs, and services.

Few accounting responsibilities in small business

You must understand what an accountant can do for the business. Here are a few everyday accounting responsibilities:

●  Record and update financial transactions
●  Prepare annual accounts and tax returns
●  Prepare self-assessment tax returns
●  Prepare self-assessment tax returns
●  Gives insights into business financial health and performance
●  Bank reconciliation
●  Tracking and managing cash flow
●  Preparing budgets
●  Assists in making sound decisions

The range of services may vary depending on your needs. For example, if you have employees or other part-time freelancers in the business, you need to manage payroll, while others don’t need to worry about it. Similarly, you may need to file VAT returns when your annual turnover exceeds the VAT threshold.

How to hire a freelancer accountant?

Finding the right person in business is essential for the proper functioning of a business. We often overlook the hard work of a team behind a company’s success, but without them, nothing is possible.

Handing over your finances and some of the most important details of your business to someone must go through a thoughtful process. Here’s how you can hire a freelancer:

●  Ask your close business associates for references or look into different authentic platforms.
●  Make a list of top candidates with good client reviews
●  Go through their websites and have an initial understanding of them
●  Set up an interview and ask about their qualification, experience, specialisation, costs, services, and a few other business-related questions
●  Shortlist the candidates and compare them
●  Finally, look for the one suitable for your business, has experience working in your industry, and offers you the best services at the best price.

Or you can save all these steps by completing a simple online form on experlu.

The right freelancer accountant will ensure that you stay compliant with the changing government regulations, pay the correct taxes before deadlines, and make sound financial decisions. These professionals can reduce stress and make the entire accounting process simple.

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Outsourcing your accounting activities can be significantly beneficial to small businesses. Not only it saves you valuable time, money, and other resources, but it also ensures you stay on top of accounting and access professional and best-quality services at all times.

Experlu Editorial Team
The editorial team at Experlu is comprised of seasoned financial professionals dedicated to providing high-quality content on accounting and finance. With a wealth of experience and diverse expertise, the team produces insightful articles that have established the Experlu blog as the UK's leading financial and accounting resource. The team includes accountants, auditors, and business advisors who stay updated with the latest industry developments. Their commitment to excellence ensures that Experlu remains a trusted source of information, helping readers stay informed about audit, business, finance, and tax matters.