Do I need an accountant for my small business?
You need an accountant when your business is registered as a company, is VAT-registered, has employees, or generates enough revenue that professional tax filing pays for itself. A sole trader with simple finances may manage with a bookkeeper alone. The accountant files taxes, prepares financial statements, and advises on structure — work that requires qualifications.
The distinction matters because accountants and bookkeepers do different things. A bookkeeper records transactions — invoices, bills, receipts. An accountant takes those records, prepares financial statements, files tax returns, and provides strategic advice. In a small business, you may use a bookkeeper monthly and an accountant quarterly or annually.
You likely need an accountant if: (1) your business is a limited company — corporate tax filing requires professional preparation in most countries. (2) You are VAT-registered — VAT returns must be accurate and filed on time, with penalties for errors. (3) You have employees — payroll, PAYE, and social security contributions require specialist knowledge. (4) Your revenue exceeds €100,000 — at this level, tax optimisation saves more than the accountant's fee.
You may NOT need an accountant if you are a sole trader with simple income, no VAT registration, and no employees. In that case, a bookkeeper (or a bookkeeping tool like Nika combined with self-assessment filing) may suffice. But even sole traders benefit from an annual accountant review — the cost (€200–500) is usually offset by tax savings they identify.
Related questions
How much does an accountant cost for a small business?
€500–2,000/year for tax filing and basic advisory. Monthly retainer services (including bookkeeping) cost €150–500/month. The cost depends on business complexity, transaction volume, and whether payroll is included. Most small businesses spend €1,000–1,500/year on accounting.
Can a bookkeeper replace an accountant?
No. A bookkeeper records transactions; an accountant files taxes and advises. They are complementary, not interchangeable. In some countries, qualified bookkeepers can prepare simple tax returns under an accountant's supervision, but the legal responsibility remains with the accountant.