How Soon Should I Get an Accountant After Starting a Business in Bedford?

Introduction

At Towerstone our team provides accountancy services in Bedford so clients can make confident decisions earlier. We have written an article about How soon should I get an accountant after starting a business in Bedford? to help you pick the right time to get support so you avoid costly early mistakes and prevent messy catch ups later.

One of the first questions new business owners ask me is when to bring an accountant on board. The instinct might be to wait until “things get complicated” or when tax returns are due. In my experience working with countless UK startups, especially small businesses in towns like Bedford, involving an accountant early can save time, stress and often tax.

There is no single right answer for every business. But there are clear markers that tell you the right time to get professional support. In this article I explain when to hire an accountant, what early help looks like, the specific benefits for Bedford startups, and practical steps to make the relationship work well from day one.

Why timing matters

The earlier you involve an accountant, the more value you are likely to get. An accountant is not just someone who does your year-end paperwork. They help you:

• set up the right structure from the start

• understand your tax responsibilities

• build compliant bookkeeping habits

• make decisions that protect profits and cash flow

If you wait until your first tax bill arrives, you will often miss opportunities that could have trimmed the bill, simplified reporting, or prevented errors.

Typical timing buckets

Here are the most common points when founders in my experience bring an accountant on board:

1. At or before business formation
This is ideal for many limited companies, partnerships, and high-growth plans. An accountant can advise on the best legal structure from the outset, helping you:

• choose between sole trader, partnership or limited company

• register for corporation tax and VAT correctly

• set up payroll if you plan to take a salary

• understand initial tax obligations

Getting this right immediately can avoid restructuring later and ensure your first year runs smoothly.

2. Within the first few months of trading
If you have not engaged an accountant at formation, aim to do so within the first three to six months. By this stage you will have some trading activity and real numbers. An accountant can:

• set up your bookkeeping system

• explain allowable expenses specific to your sector

• forecast tax payments and cash flow

• advise on whether you need VAT registration yet

This timing still gives you control over decisions that impact tax and compliance throughout the year.

3. Before your first tax return or VAT deadline
If you have made it this far without professional support, don’t wait past your first deadline. For example:

• sole traders need to file a Self Assessment by 31 January after the tax year end

• limited companies need to file a company tax return and accounts within 12 months of the accounting period end

An accountant at this stage can help correct course and make sure you meet obligations on time.

What early involvement looks like

You might think “I only need an accountant when I have to submit a tax form”. In reality early involvement is more strategic.

Here are typical early-stage tasks an accountant handles:

Business structure advice
Choosing the most tax-efficient and legally suitable structure.

Bookkeeping setup
Choosing software (like Xero, QuickBooks, FreeAgent), linking bank feeds, categorising transactions correctly.

Cash flow and tax forecasting
Estimating how much you might owe in tax, helping you set aside cash so you are not surprised.

Registering for necessary taxes
This includes VAT, PAYE (if you have employees), and corporation tax.

Setting up payroll
Payroll runs, PAYE reporting and auto-enrolment can be confusing. An accountant makes it straightforward.

Advice on allowable expenses
Many new business owners miss out on legitimate reliefs because they are unaware of what counts. Common allowances include home office, travel, subsistence, software, and professional fees.

Why Bedford makes no difference to the timing

Whether you are in Bedford, London, Manchester or elsewhere, the basic UK tax and filing rules are the same. What can differ is the level of local support and the type of accountant you choose.

In Bedford there are plenty of experienced accountants, ranging from independent sole practitioners to firms serving SMEs. The key is to choose someone who understands your business type rather than someone local purely for convenience.

Many businesses work effectively with accountants across the UK via cloud accounting software and online meetings. Location is less important than expertise and communication.

How early involvement saves money

I often hear people say “an accountant costs too much at the start”. What they overlook is that early professional advice can reduce costs by:

• preventing costly mistakes (missed deadlines, wrong structures)

• improving tax efficiency

• freeing up time to focus on growth

• helping you avoid late penalties

For example, early VAT planning could mean choosing a scheme that improves cash flow. Setting up payroll properly can prevent future PAYE errors and penalties.

Real world scenarios

Here are typical situations where early accountant involvement worked well:

Scenario 1: A tech contractor in Bedford
A contractor started as a sole trader but planned to take on sub-contractors and hire help. An accountant advised setting up a limited company from the start. This saved tax on profits and made pension contributions more efficient.

Scenario 2: A café owner
The café owner was unsure about claiming capital allowances on equipment purchases. Early advice ensured the right depreciation and reliefs were applied.

Scenario 3: An online retailer
The retailer crossed the VAT threshold within months. Early setup with proper bookkeeping made VAT registration and reporting seamless.

Costs versus value

Small business accounting fees vary depending on services. Typical early stage tasks like bookkeeping setup, tax forecasts, and quarterly reviews might be a few hundred pounds a month. Comprehensive year-end filing and tax planning might be higher.

In my experience most businesses find these fees more than offset by:

• time saved

• mistakes avoided

• tax efficiency gains

Rather than viewing fees as a cost, see them as an investment in sustainable business foundations.

What to ask an accountant before you engage

When you start discussions, you might ask:

• What services are included and what costs extra?

• How often will we meet or communicate?

• Do you offer proactive planning or just compliance?

• What software do you use and how will I access it?

• Can you help with VAT, payroll and tax forecasting?

Good accountants will explain all of this clearly and tailor their approach to your needs.

DIY accounting versus professional support

If your business is very simple and you enjoy learning accounting software, you might start DIY. But remember that software is a tool not a strategy.

Software can help you record transactions. It does not replace understanding tax thresholds, reliefs, deadlines, and planning opportunities. An accountant brings that context and foresight.

Practical guidance

Here are actionable steps:

Step 1
Decide early whether you want professional support before or shortly after you start.

Step 2
Interview two or three accountants to find a good fit.

Step 3
Set up bookkeeping software and link bank accounts early.

Step 4
Ask for a tax forecast so you know what to expect.

Step 5
Review your situation quarterly rather than just at year-end.

Final thoughts

In my experience there is rarely a downside to engaging an accountant early in your business journey. The sooner you start, the more strategic and less stressful your first year will be.

If you are already trading in Bedford but have not spoken to an accountant, now is a good time. Proactive advice pays dividends in tax efficiency, compliance, and confidence.

If you have specific circumstances you want to discuss, just let me know.

To continue reading you may also find How to Choose the Right Accountant for Your Business in Bedford and What Documents to Bring to Your Accountant for Year-End useful. For a full overview visit our Bedford Accounting Hub.