When should a startup hire an accountant? 

Starting your own business is exciting, but it’s also full of decisions that can shape your future success. One of the most common questions we hear from startups is: “When should I hire an accountant?” 

The short answer? Much earlier than you think. 

Many entrepreneurs assume they only need an accountant at the end of the year to file taxes. But the truth is, a good accountant can be a strategic partner from the very beginning. In fact, involving an accountant early can save you time, money, and stress, and help set your business on the right path. 

If you’re launching or running a small business in the UK, here are key moments when hiring an accountant isn’t just helpful, but essential. 

Whether you’re deciding between becoming a sole trader, a limited company, or even forming a partnership, the structure you choose will affect your tax obligations, legal responsibilities, and future plans. 

An accountant can: 

• Explain the pros and cons of each business structure 
• Help you register with HMRC or Companies House 
• Ensure your setup is compliant and optimised for tax efficiency 

Tip: Making the wrong choice early on can be costly to fix later. 

You may know your product or service inside out but turning that into numbers can be tricky. An accountant can help you build a realistic financial forecast, something investors, lenders, and even grant providers will want to see. 

They can: 

• Create cash flow forecasts and budgeting templates 
• Advise on pricing, profit margins, and breakeven points 
• Help you secure funding with strong financials 

One of the most common startup mistakes? Mixing personal and business finances. The right accountant will guide you through setting up the right bank accounts and recommend accounting software to track your income, expenses, and invoices from day one. 

They’ll also: 

• Recommend cloud accounting software (like Xero or QuickBooks) 
• Make sure you’re compliant with Making Tax Digital (MTD) requirements 
• Set up systems to track income, expenses, and invoices accurately 
• Navigate the growth plan with you!! (In our case, we can do that!!) 

Whether you’re taking a salary as a director or hiring your first employee, things get more complex. Get it wrong and you could face penalties. 

An accountant will: 

• Register and manage your PAYE scheme 
• Advise on tax-efficient ways to pay yourself 
• Handle payroll, National Insurance, and workplace pensions 

If your revenue hits the VAT threshold (currently £90,000), you must register. But even before that, voluntary VAT registration might offer advantages depending on your clients and costs. 

Your accountant can: 

• Put you on the best VAT scheme 
• Ensure you’re claiming all allowable expenses 
• Identify tax reliefs (like R&D credits or SEIS/EIS schemes) 
• Plan ahead to minimise your tax bill legally 

This is the bit most people associate with accountants, preparing your annual accounts and filing your tax returns. But by involving your accountant early, your year-end will be far less stressful. 

They’ll handle: 

• Corporation tax returns and annual accounts 
• Filing with HMRC and Companies House on time 
• Keeping you compliant, penalty-free, and audit-ready 
• Advising your business to get the best from it 

Ideally, before you even launch. 

Think of an accountant not as a cost, but as an investment. The right advice early on can: 

• Prevent costly mistakes 
• Improve your chances of securing funding 
• Save you hours of admin and worry 
• Help your business grow faster and smarter 

At Future Cloud, we work with startups across the UK. Whether you’re still planning or already trading, we’d love to help you build a strong financial foundation. 

Let’s talk. Get in touch with us and see how we can help your business thrive.  

Your friendly, forward thinking accountants! 

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