Modern accounting software makes it easier than ever to stay on top of your finances. If you’re using tools like FreeAgent or Xero, you might be wondering: Do I need an accountant anymore?
It’s a fair question. These platforms can generate invoices, chase payments, file your VAT returns, and even submit Self Assessment in some cases. However, while software handles many administrative tasks, it doesn’t render human advice completely redundant, especially when tax rules become complex.
Here’s a practical look at what these tools do well, where they fall short, and whether you can safely go it alone or still need an expert in your corner.
What software can handle on its own
Let’s start with what FreeAgent, Xero and similar tools are built to do:
- Send and track invoices
- Connect to your business bank account and match transactions
- Log expenses and upload receipts
- Run profit & loss and balance sheet reports
- Track mileage and time
- Manage payroll (if set up correctly)
- Submit VAT returns (if you’re signed up for MTD)
- Support for Self Assessment (FreeAgent only)
They also do a decent job of flagging deadlines and generating useful overviews, especially if you check them regularly. FreeAgent in particular is well suited to sole traders and small limited companies.
FreeAgent for Limited Companies – try it here
So do you still need an accountant?
It depends on a few things — mainly how complex your finances are, and how confident you are about the tax side of things.
If you’re a sole trader with one income stream, no employees, and you’re comfortable with Self Assessment, you might manage fine without an accountant. But even then, you could be missing out on tax-saving opportunities.
And if you run a limited company, have multiple income sources, claim things like capital allowances or pensions, or deal with VAT, it’s usually worth having someone who knows what they’re doing check it all over.
What software doesn’t do (yet)
Here’s where software can’t fully replace a human:
- Advising on the most tax-efficient way to take income
- Spotting when you’re eligible for reliefs or allowances
- Helping you plan for future tax bills or company changes
- Checking for errors before you file
- Dealing with HMRC enquiries or disputes
- Helping you decide when to register for VAT or change business structure
These are the kinds of things a good accountant will look out for — and the kind of value that’s easy to overlook until something goes wrong.
For more on costs and what to expect, see how much you should pay for an accountant.
Could you just hire one for year-end only?
This is a popular compromise. You do the day-to-day work in Xero or FreeAgent, then bring in an accountant to review everything before filing, just to check you haven’t made any obvious mistakes.
You’ll usually pay a one-off fee, and it’s far cheaper than full monthly packages. But make sure your records are tidy — no accountant wants to untangle a year’s worth of mismatched transactions for a bargain price.
Compare self-employed accountant options here
How to get the best of both worlds
Some accountants now include software access in their package, so you don’t have to choose between the two. In fact, many will insist you use software so they can collaborate with you easily.
This means you can upload receipts, track your income, and keep your books up to date — and they’ll step in when it’s time to file or advise on bigger-picture decisions.
Not sure if you even need an accountant? Read this first
Trusted external guides and resources
Still weighing up your options? These independent guides are worth a look:
- MoneyHelper – Choosing an accountant
- Which? guide to self-employed expenses
- AccountingWEB – small business Q&A
Summary
Accounting software is excellent for handling day-to-day administrative tasks, and it can save you time and money. But it’s not a full replacement for personalised advice, especially if your finances aren’t dead simple.
If you’re confident, organised, and keep things straightforward, you might manage without an accountant. However, if your business is growing or you want peace of mind, pairing software with an accountant is often the safest course of action.
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