As a small business owner, you may be used to taking the DIY approach. After all, you’re most likely a marketer, financial director, HR manager and payroll administrator, to name but a few of your many responsibilities. However, although your business may be small, there’s one area that really does call for professional help – and that’s filing your tax return. Let’s take a look at four of the main reasons you shouldn’t do your taxes yourself this season.
1. You’re Not a Numbers Person
We’d all like to believe that we’re good at absolutely everything, but the truth is that not everyone is good with numbers. If you don’t have an affinity for mathematics then doing your taxes yourself is probably not the best idea.
Even if you’re competent enough at everyday calculations, taxes are a whole different ball game. Calculating your taxes is a very complex process; there’s a reason that chartered accountants have to spend so many years in training.
a simple mistake on your tax return can cause you to pay the wrong amount of tax and even result in harsh penalties that can seriously threaten your small business. It really isn’t worth the risk.2. It’s a Waste of Your Time
Taxes are notoriously time-consuming and as a busy business owner, your time is a precious resource that you can ill-afford to waste. After all, the time that you spend doing your taxes is time you can’t spend growing your business. It’s important to sit down and think about how much your time is actually worth before you squander it all trying to figure out your taxes. Think of time in the same way as you think of money, and learn to invest it wisely.
3. Tax laws change constantly
Tax laws change all the time and it can be incredibly difficult to stay on top of all the latest rules and regulations – especially when you already have a business to run. When tax season rolls around, the chances are you won’t know about all of the latest changes which could lead to you making mistakes on your tax return or missing out on new opportunities to save money.
It’s an accountant’s job to keep up to date on any changes and then take advantage of these opportunities to save you money, so that you pocket as much of your income as possible. Remember that a quality accountant will always save you more than their wages.
4. The Internet is Full of Misinformation
In this day and age, the DIY approach to any task usually involves several Google searches. The problem is that although the internet is a wonderful resource, it’s full of incorrect or outdated information. As discussed, tax laws and deductions change all the time, so the article you’re reading may no longer be accurate. Furthermore, tax rules vary hugely from country to country, so you might end up making a mistake because you read advice that doesn’t apply to your business.
Sifting through all of this information and checking for veracity is a hugely time-consuming task, so you’re far better off working with a tax professional who has relevant experience within your specific industry. That way, you can have your questions immediately answered by someone who knows what they’re talking about and won’t have to waste time falling down Google rabbit holes.
Summary
The needs of every business are different, but if the above issues resonate with you then you should consider hiring an accountant when tax season rolls around. A great accountant is an investment in the financial health of your business, and will undoubtedly save you a significant amount of time, money and stress in the long run.
Do small businesses need an accountant to file a tax return?
Not every small business is legally required to use an accountant, but professional support can be particularly valuable where the owner has employees, is registered for indirect taxes, operates through a company, has multiple income streams, claims business expenses, or sells across borders. The correct filing obligations depend on the country where the business is registered and its legal structure, such as sole trader, partnership or limited company.
Before deciding whether to take a DIY tax return approach, confirm which tax authority applies to you, which returns are due, and which records you must retain. An accountant can explain the requirements for your specific circumstances rather than relying on general online guidance that may apply in another jurisdiction.
What does an accountant actually do when preparing a small-business tax return?
- Reviews bookkeeping records, bank transactions, invoices, receipts and payroll information for completeness.
- Separates business costs from personal spending and checks that transactions have been categorised consistently.
- Reconciles reported income and expenses against supporting records.
- Identifies questions or missing evidence before the return is submitted.
- Calculates the tax position under the rules that apply to the business and prepares the relevant filing.
- Explains payment dates, record-keeping responsibilities and any actions needed after submission.
This review process is useful because bookkeeping errors, incomplete documentation and incorrect classifications can affect the final return even when the arithmetic is correct.
When should a small-business owner avoid a DIY tax return?
Consider using an accountant or tax adviser if any of the following apply:
- Your bookkeeping is behind, incomplete or mixes personal and business transactions.
- You have employees, contractors or payroll reporting duties.
- You trade through a company, partnership or another structure with separate filing obligations.
- You have started, closed, acquired or restructured a business during the tax period.
- You sell internationally, work in more than one location or have tax obligations in more than one country.
- You are unsure which expenses are allowable or what documents support a claim.
- You have received correspondence, a correction request or an enquiry from a tax authority.
A straightforward business with current records may be able to file independently, but uncertainty in any of these areas is a reason to seek tailored advice before submitting.
Do small businesses need an accountant to file a tax return?
Not every small business is legally required to use an accountant, but professional support can be particularly valuable where the owner has employees, is registered for indirect taxes, operates through a company, has multiple income streams, claims business expenses, or sells across borders. The correct filing obligations depend on the country where the business is registered and its legal structure, such as sole trader, partnership or limited company.
Before deciding whether to take a DIY tax return approach, confirm which tax authority applies to you, which returns are due, and which records you must retain. An accountant can explain the requirements for your specific circumstances rather than relying on general online guidance that may apply in another jurisdiction.
What does an accountant actually do when preparing a small-business tax return?
- Reviews bookkeeping records, bank transactions, invoices, receipts and payroll information for completeness.
- Separates business costs from personal spending and checks that transactions have been categorised consistently.
- Reconciles reported income and expenses against supporting records.
- Identifies questions or missing evidence before the return is submitted.
- Calculates the tax position under the rules that apply to the business and prepares the relevant filing.
- Explains payment dates, record-keeping responsibilities and any actions needed after submission.
This review process is useful because bookkeeping errors, incomplete documentation and incorrect classifications can affect the final return even when the arithmetic is correct.
Accounting software can help, but it does not replace a tax review
Tools such as Xero, QuickBooks, Sage and FreeAgent can help small businesses record sales, upload receipts, reconcile bank transactions and produce financial reports. Depending on the country, an official tax-authority portal may also allow taxpayers to submit returns directly.
However, software normally works from the information entered into it. It may not know whether an expense has been recorded correctly, whether a transaction needs further evidence, or whether a tax rule applies to a particular business activity. A qualified accountant can review the underlying records, ask questions about unusual transactions and provide advice that reflects the business's location, structure and obligations.
For many owners, the strongest approach is to maintain records in software throughout the year and obtain professional review before filing.
When should a small-business owner avoid a DIY tax return?
Consider using an accountant or tax adviser if any of the following apply:
- Your bookkeeping is behind, incomplete or mixes personal and business transactions.
- You have employees, contractors or payroll reporting duties.
- You trade through a company, partnership or another structure with separate filing obligations.
- You have started, closed, acquired or restructured a business during the tax period.
- You sell internationally, work in more than one location or have tax obligations in more than one country.
- You are unsure which expenses are allowable or what documents support a claim.
- You have received correspondence, a correction request or an enquiry from a tax authority.
A straightforward business with current records may be able to file independently, but uncertainty in any of these areas is a reason to seek tailored advice before submitting.
Where should small businesses verify tax-return information?
Always check current rules with the tax authority in the country where your business is registered. Official guidance is more reliable than generic blog posts because filing dates, thresholds, deduction rules and digital filing requirements can change.
Businesses in the United Kingdom can begin with HM Revenue & Customs: https://www.gov.uk/government/organisations/hm-revenue-customs
Businesses in the United States can consult the Internal Revenue Service small-business portal: https://www.irs.gov/businesses/small-businesses-self-employed
If your business is registered elsewhere, use the official government tax authority website for that jurisdiction. An accountant should be able to explain how current official guidance applies to your records and business structure, rather than simply providing a generic answer.