The benefits of outsourcing your accountant: what you should know

Running a business means dealing with a lot more than sales, customers and day-to-day work. You also need to keep your records accurate, pay staff correctly, track tax deadlines and understand whether the business is actually making enough profit.

That can be difficult when you are trying to do everything yourself.

In the UK, there were around 5.7 million private sector businesses at the start of 2025. Most were small businesses, which means many owners do not have a full in-house finance team. For those businesses, outsourcing accountancy support can be a practical way to stay organised without taking on another permanent salary.

Outsourcing your accountant does not mean giving up control. It means getting the right level of support for your business, whether you need bookkeeping, payroll, tax returns, VAT help or a more complete finance function.

What does outsourcing your accountant mean?

Outsourcing your accountant means using an external accounting team to handle some or all of your finance work.

This could be as simple as asking for help with your year-end accounts. It could also mean handing over monthly bookkeeping, VAT returns, payroll, management reports and company filing responsibilities.

For example, a sole trader may need regular support with personal tax returns. A limited company may need help with annual statutory accounts and Corporation Tax. A growing business may need a wider outsourced finance department to keep everything moving properly.

The main benefit is flexibility. You can choose the support you need now and adjust it as your business changes.

It can reduce fixed business costs

Hiring an in-house accountant or finance manager can be expensive. You need to think about salary, employer National Insurance, workplace pension contributions, training, software and holiday cover.

For many SMEs, that level of cost is not realistic.

Outsourcing gives you access to accounting knowledge without adding a full-time employee to your payroll. You can pay for the services you actually need, such as Xero bookkeeping, payroll support or quarterly reporting.

This can be especially useful if your workload changes through the year. You may need more help near filing deadlines, then lighter support during quieter months.

You can save valuable time

Many business owners underestimate how much time financial admin takes. A few unpaid invoices, missing receipts and bank reconciliations can quickly eat into your evenings.

At first, doing everything yourself may feel like a saving. But if it takes you away from customers, sales or operational work, it may be costing more than you think.

By outsourcing tasks such as payroll services, bookkeeping and tax preparation, you can spend more time on work that moves the business forward.

You still make the decisions. You simply do not need to handle every spreadsheet, payslip or receipt yourself.

Your records are more likely to stay accurate

Good accounting starts with accurate records. If the numbers are wrong, your tax returns, VAT returns and business decisions may be wrong too.

Small mistakes can become bigger problems over time. A missed receipt, incorrect VAT code or late invoice can affect cash flow and create unnecessary pressure.

This is particularly important if you are close to the VAT threshold. You must usually register for VAT if your taxable turnover goes over £90,000 in the last 12 months, or if you expect it to go over £90,000 in the next 30 days.

Regular VAT return services can help you monitor turnover, prepare returns and avoid last-minute panic.

You can make clearer business decisions

Your accounts should do more than satisfy HMRC and Companies House. They should help you understand your business.

When your figures are up to date, you can see which services are profitable, whether costs are rising too quickly and whether your cash flow can support your plans.

This matters if you want to hire staff, buy equipment, move premises or apply for funding. Without accurate figures, those decisions become guesswork.

Support with company tax returns and regular management information can help you see what is happening before the year ends.

A good accountant should explain the numbers in plain English. You should not be left with reports that look impressive but do not help you act.

It helps with tax planning throughout the year

Tax planning is usually easier when it is done early. If you wait until the deadline, your options may be limited.

Outsourcing gives you more regular access to advice. This can help with director salaries, dividends, allowable expenses, Corporation Tax, VAT planning and the timing of larger purchases.

For start-ups, early advice from accountants for start-ups can also help you choose the right structure and avoid messy records from day 1.

This is not about taking unnecessary risks. It is about understanding the rules, planning properly and avoiding rushed decisions.

You can scale the support as your business grows

Your accounting needs will change over time. A new business may only need basic bookkeeping and tax support. A growing business may need payroll, VAT returns, management accounts and more regular advice.

Outsourcing makes that easier because you do not need to build a finance team before you are ready.

This means your support can grow with you, rather than forcing you into a fixed setup too early.

It can help with company admin

Accounting is not only about tax. Limited companies also have Companies House responsibilities, including confirmation statements, statutory records and filing deadlines.

The online Companies House confirmation statement fee is £50, while paper filing is £110. Missed or incorrect filings can create unnecessary problems for directors.

Using company secretarial services can help you keep on top of these responsibilities. It also gives you a clearer record of important company changes.

It can support property businesses and landlords

Property accounting can be more complex than standard business accounts. Rental income, repairs, mortgage interest, service charges and ownership structures all need careful treatment.

If you own property personally or through a company, a landlord accountant can help you keep clean records and understand your tax position.

If you deal with commercial property, you may also need support with commercial property management accounts. For shared buildings, service charge accounting can help with transparency and reporting.

Specialist support matters here because property finances often involve more moving parts than people expect.

Will you lose control if you outsource?

No. Good outsourcing should give you more control, not less.

You should still understand your numbers, approve important decisions and have access to your accounting records. The accountant handles the technical work and helps you interpret the figures.

You can agree how often you receive updates, what tasks are handled externally and when you want advice. Some business owners prefer monthly calls. Others simply want key issues flagged when needed.

The right setup should feel supportive, clear and practical.

Is outsourcing your accountant right for you?

Outsourcing may be right if your accounts are taking too much time, your records are falling behind or you feel unsure about tax and filing deadlines.

It can also help if your business is growing but you are not ready to employ an in-house finance person. You get professional support, clearer figures and fewer admin headaches.

If you want practical accounting support that fits around your business, speak to FHP Accounting. The team can help with bookkeeping, payroll, VAT, tax returns, statutory accounts, property accounting and wider finance support.

Need help with your accounts?

If your business finances are becoming harder to manage, now is a good time to get support. Contact FHP Accounting’s team to discuss what you need and find out how outsourcing your accountant could save time, reduce stress and help you stay in control of your numbers.

Kellee Quigley

I lead FHP Accounting, an accountancy practice specialising in Commercial and Residential Property Accounting. Our goal is to make the administration of running property portfolios easier for landlords, managers, and investors — allowing you to focus on what you do best, while we take care of everything behind the scenes.