When should a startup hire an accountant?

Founders are good at doing everything themselves, and in the early days bookkeeping is often one more job on the list. At some point, though, doing your own accounts starts to cost more in time, stress and missed opportunities than it saves. So when is the right time to bring in a professional?

Earlier than you might think

One conversation with an accountant when you set up the business can pay for itself many times over. They can advise on business structure, registrations, which accounting method to use, and what records to keep. Decisions made at this stage are often harder to change later. After that, you're probably ready for ongoing support if you're registering for sales tax or VAT, hiring your first employee, raising investment or applying for a loan, selling into new countries, or simply finding that the books are always a month or more behind. Another signal: you're making big decisions without trusting the numbers behind them.

I thought an accountant was a cost we'd take on once we were bigger. In hindsight, they were the reason we got bigger without tripping over tax deadlines.

Bookkeeper, accountant or finance lead?

These roles overlap but aren't the same. A bookkeeper typically keeps day-to-day records accurate and up to date. An accountant usually prepares year-end accounts and tax returns and gives advice. As you scale, a part-time or fractional finance lead can help with budgeting, forecasting and fundraising. Many startups combine good software with a bookkeeper and an external accountant long before they need a full-time finance hire.

Getting the most from the relationship

Keep your records clean and up to date, give your accountant direct access to your books rather than emailing spreadsheets back and forth, and talk to them before big decisions, not after. Agree on what you'll handle in-house and what they'll own, and set a regular check-in, even if it's just once a quarter. A good accountant is most valuable as an adviser looking ahead, not just someone who tidies up the past.

Entirova lets you invite your accountant with the permissions you choose, so you can both work from the same live numbers.