Should my accountant be licensed? -

While tax law may not be directly relevant to your day-to-day business, it forms an integral part of the operation of any business. In the UK, compliance with HMRC rules requires knowledge of both current legislation and accounting.

Good bookkeeping not only guarantees the legitimate operation of a company but also optimises costs and better financial management. The choice between a licensed accountant and an unlicensed employee will have a long-term impact on the operation of your company and its finances. From our article, you will find out, among other things, whether an accountant needs to be licensed and what the role of a licensed accountant is in a company.

Licensed accountant or not? We dispel your doubts

UK law does not impose an obligation on individuals or firms providing accountancy services to hold a licence. Neither the licence of an accountant in Poland nor the UK is relevant to the legality of carrying on business. However, this does not mean that the level of qualification of an unlicensed accountant will be the same as that of a specialist with such a licence. An expert accountant has broader skills, and his/her work is strictly regulated and monitored by relevant professional bodies.

If an unlicensed accountant is hired, the consequences of any accounting errors fall on the entrepreneur’s shoulders. Expert accountants must comply with standards of professional ethics and are liable for their mistakes. In the UK, certified or licensed accountants are generally covered by professional indemnity insurance – this means that in the event of actions that would result in a loss to your business, the cost of accounting errors will be covered by your policy.

How do you become an expert accountant in the UK?

An experienced accountant not only provides greater accounts security but also gives you confidence that you are using the latest industry practices. Becoming a licensed accountant requires completing specialised training and passing a series of examinations, which are overseen by reputable organisations such as the ACCA (Association of Chartered Certified Accountants) and the AAT (Association of Accounting Technicians).

This process not only involves verifying theoretical knowledge, but also practical experience of working with finances. A good accountant can effectively support your business in numerous areas, such as tax optimisation or cash flow management. What’s more, licensed professionals must regularly update their accountant qualifications through Continuing Professional Development (CPD), which ensures that their knowledge is always up to date and in accordance with current legislation.

The qualities of a good accountant – what is it like in the UK?

Bookkeeping requires accuracy and meticulousness. Mistakes in accounts can result in financial penalties and legal consequences from HMRC. A reliable accountant who pays attention to the most minor details in their day-to-day tasks is the best guarantee of a properly functioning business. Requirements for accountants should also include strong communication skills, professional advice, and availability.

Are you looking for a way to optimise your company’s bookkeeping without hiring a full-time employee? Outsourcing your bookkeeping is a beneficial solution that allows you to focus on running your business by outsourcing your finances. In this way, the entrepreneur gains access to the latest knowledge and tools, and the costs of such a service are often lower than keeping the accounting department in-house.

Contact Essence Accounting and take care of your company’s finances

Working with a licensed accountant gives you peace of mind that your business finances are in good hands. At Essence Accounting, we have a ready-to-go team of certified professionals with years of experience providing comprehensive accounting services to businesses. Our services include not only bookkeeping but also tax advice, cost optimisation assistance and financial forecasting.