Why DIY accounting could be more expensive than you think

You may feel like you are personally in control of your business’ finances and with online software, doing it yourself should be simple, right? But who can you turn to if you are not sure what category to put an expense under or find aspects of the software confusing? If you get it wrong, you could end up having to pay an accountant more to correct your bookkeeping and ensure your tax returns are correct. 

Therefore, doing your own bookkeeping and accounts could end up draining your valuable time, increasing your stress levels, and causing your business expensive mistakes. 

Here we look at the hidden costs of DIY accounting and explain how the services of a professional accountant can save your business time, money and headaches – while helping it grow faster. 

Common financial mistakes businesses make 

Doing your own accounting without professional support increases the risk of errors –many of which are costly: 

• Missed tax deductions – £3,200 lost annually. 
• Payroll mistakes – £2,800 in fines and corrections. 
• Cash flow issues – Up to £5,600 lost each year. 
• Late tax filings and penalties – Up to £4,500 per year. 

According to the Federation of Small Businesses, small and medium businesses also spend 12 full working days a year on tax compliance alone. 

Three reasons to ask an accountant to look after your finances 

1. Saves you time 

Small businesses often underestimate the time they spend managing their finances. According to a YouGov Survey, UK businesses lose an average of 10 hours per week on accounting tasks like admin, bookkeeping and tax returns. 

Sole traders who use a professional to look after their accounts can save up to 5-6 hours per week, while some small businesses could find they are getting back 8-10 hours and larger businesses could free up 11.6 hours. 

Example: 

A marketing agency owner spends 10 hours a week on invoicing and spreadsheets. After using an accountant, she now: 

• Saves 10 hours. 
• Signs two new clients 
• Spends more time on strategy, not admin. 

2. Proven revenue growth 

Hiring an accountant does not just save time – they can help you grow your revenue. According to research by QuickBooks, sole traders who use an experienced accountant may see their revenue increase by up to 8.9% (worth £6,176 annually), businesses with up to nine employees could see their revenue rise by 7.9% (£31,740 annually), while slighter larger businesses could see their revenue go up by 13.7% (£553,000 annually). 

3. Expert financial support and advice 

Accountants help your business succeed by maximising tax efficiency by ensuring you only pay the tax you need to while keeping you fully compliant with HM Revenue and Customs rules. 

Using a professional’s expertise and experience, means they can also provide valuable advice when it comes to helping with your business’ cash flow and offer strategic insights that help you to make smart decisions. 

How using an accountant helps you focus on growing your business 

When you are not spending time looking after your books and accounting administration, you are free to: 

• Plan your business strategically. 
• Grow your customer base. 
• Improve your product or service offering. 
• Lead your team more effectively. 
• Enjoy a better work-life balance. 

A step-by step guide switch from DIY to professional accounting 

1. Identify your biggest financial pain points – Tax? Payroll? Cash flow? 
2. Research accounting providers – Look for those that specialise in working with small businesses. 
3. Understand pricing – Many offer fixed fee monthly plans with no hidden extras to give you peace of mind. 
4. Ask about accounting software – Online tools, such as QuickBooks and Xero, make collaboration easy. 
5. Book a free consultation – TaxAssist Accountants offers free initial consultations to help you tailor a service to meet your business’ needs. 

Ready to make the switch? 

Find out more about switching your accountant here or call TaxAssist Accountants today on 01923 944287 or use our simple online form here. 

Last updated 16 Apr 2025 | First published 16 Apr 2025

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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