How to Become a Self-Employed Accountant: A Complete Guide
Thinking about becoming a self-employed accountant? Whether you want to start your own practice, offer freelance accounting services, or work remotely with multiple clients, self-employment in accounting offers flexibility, independence, and high earning potential.
With businesses increasingly outsourcing financial services, there’s never been a better time to launch your own accounting career. But how do you start? What qualifications do you need? And how do you find clients?
This guide will walk you through everything you need to know to become a successful self-employed accountant.
📌 Step 1: Get the Right Qualifications and Skills
Before offering accounting services, you need the right knowledge and credentials. While you don’t necessarily need a degree, professional certifications can boost credibility and attract clients.
Essential Qualifications for Self-Employed Accountants (UK)
✔️ AAT (Association of Accounting Technicians) – Ideal for starting your own bookkeeping/accounting business.
✔️ ACCA (Association of Chartered Certified Accountants) – Full qualification allows you to provide higher-level financial services.
✔️ CIMA (Chartered Institute of Management Accountants) – Best for management accounting and business advisory roles.
✔️ ICAEW (Institute of Chartered Accountants in England and Wales) – Advanced qualification for corporate and tax accountants.
Key Accounting Skills to Master
✅ Bookkeeping and financial reporting
✅ Tax preparation (VAT, self-assessment, corporation tax)
✅ Payroll management
✅ Use of cloud accounting software (Xero, QuickBooks, Sage)
✅ Business advisory and financial forecasting
💡 Pro Tip: If you’re not yet qualified, start with an AAT Level 2 or 3 certification and gain experience while working toward advanced credentials.
📌 Step 2: Set Up Your Self-Employed Accounting Business
Once you have the qualifications, it’s time to register your business and set up operations.
1️⃣ Register Your Business
• Choose a structure: Sole trader, Limited Company, or LLP.
• Register with HMRC for self-assessment and, if applicable, VAT registration.
• Apply for Professional Indemnity Insurance (PII)—this is required if you plan to provide regulated accounting services.
2️⃣ Choose the Right Accounting Software
Having the right tools will streamline your work and make managing multiple clients easier. Popular choices include:
✔ Xero – Great for cloud accounting and small businesses.
✔ QuickBooks – Perfect for freelancers and startups.
✔ Sage – Well-known for corporate accounting and payroll.
3️⃣ Set Up a Business Bank Account
Even if you’re a sole trader, having a separate business account helps keep personal and business finances separate.
💡 Pro Tip: Consider using an invoicing system like Zoho Books or FreshBooks to track client payments and cash flow effectively.
📌 Step 3: Find Clients and Build Your Reputation
Getting your first clients can be challenging, but with the right marketing strategy, you can grow your business quickly.
1️⃣ Leverage Online Platforms
• List your services on Upwork, PeoplePerHour, and Fiverr to attract international clients.
• Use LinkedIn to network with businesses that need accounting support.
• Join local business networking groups and Facebook communities.
2️⃣ Offer Niche Services
Specializing in a niche can help you stand out. Consider focusing on:
✔ Freelancers & Small Businesses – Many startups need affordable accounting services.
✔ E-commerce Accounting – Online sellers require help with VAT and inventory accounting.
✔ Construction & Trades – CIS tax schemes and project-based accounting.
3️⃣ Set Competitive Pricing
When starting, research competitor rates to set fair pricing. Common models include:
• Hourly rates (£25-£50 per hour for bookkeepers, £50+ for accountants).
• Fixed monthly packages for businesses (£150-£500/month).
• Project-based pricing for tax returns, VAT filings, etc.
💡 Pro Tip: Offer free consultations or discounted first-month services to attract new clients.
📌 Step 4: Stay Compliant with Legal and Tax Regulations
As a self-employed accountant, you must comply with financial regulations and manage your own taxes.
Key Compliance Steps:
✔ Register for self-assessment with HMRC.
✔ Stay up to date on tax deadlines to avoid fines.
✔ Consider professional body membership (ACCA, ICAEW, AAT)—some require licenses for offering public accounting services.
Managing Your Own Taxes
• Track expenses (office costs, software, travel).
• Save for tax payments (self-employed accountants should set aside 20-30% of income for taxes).
• Use accounting software to manage your books.
💡 Pro Tip: If you plan to hire employees in the future, register for PAYE (Pay As You Earn) with HMRC.
📌 Step 5: Scale Your Business and Increase Your Earning
Once you have steady clients, focus on growing your business and increasing profitability.
1️⃣ Expand Your Service Offerings
Consider adding:
✔ Tax advisory and planning services
✔ Business consulting and financial forecasting
✔ Payroll management for small businesses
2️⃣ Automate and Outsource
Use automation tools to reduce admin work and outsource basic bookkeeping tasks to assistants.
3️⃣ Build Long-Term Client Relationships
• Offer year-round support instead of just tax-season services.
• Provide valuable insights on financial growth strategies.
• Upsell additional services (e.g., financial audits, cash flow planning).
💡 Pro Tip: Consider creating online courses or e-books to generate passive income from your expertise.
📌 How Much Can You Earn as a Self-Employed Accountant?
Earnings depend on experience, qualifications, and client base. Here’s what you can expect:
Freelancers who specialize in tax advisory or business finance can earn £100 per hour or more!
📢 Fact: Many self-employed accountants earn more than salaried accountants due to flexible pricing and multiple income streams.
🚀 Start Your Self-Employed Accounting Career Today!
Becoming a self-employed accountant is an exciting and rewarding career choice that offers financial freedom and flexibility.
Key Takeaways:
✅ Get qualified (AAT, ACCA, or CIMA) to build credibility.
✅ Set up your business legally and choose the right software.
✅ Find clients using freelance platforms, networking, and LinkedIn.
✅ Stay compliant with tax and regulatory requirements.
✅ Scale your business by expanding services and automating processes.
📌 Want to fast-track your accounting career? Check out ELF College courses today!