Are you retired and starting out as a self-employed person? If so, you might be wondering: do I need to hire an accountant? The short answer: you can, but you don’t have to.
In this article, we provide an explanation of the options available to you, and why more and more retired entrepreneurs are choosing to do their own bookkeeping. It’s easy, cost-effective, and you can still seek advice from a professional where necessary.
Hiring an accountant: the traditional choice
Hiring an accountant is the traditional route taken by many new self-employed people. An accountant takes a lot of work off your hands: they handle VAT declarations, the yearly tax return, your bookkeeping and offer advice on important decisions.
But… did you know that an accountant can easily cost you €1,000 to €2,000 a year? For many retired self-employed people who are simply looking to earn a bit of extra income, that’s a waste of money.
For a company, it is advisable to work with an accountant, as you are required to create double-entry accounts. Without accounting knowledge, this is therefore very difficult.
For a sole proprietor, on the other hand, you can easily do your own bookkeeping. Then you won’t have to pay an expensive accountant just to process your documents. Would you still like some extra advice? Then you can always seek advice from a consultant.
Tip from an accountant
Most pensioners operate as sole proprietors. It’s cheaper and easier to set up.
How do you do your own bookkeeping as a pensioner?
To do your own bookkeeping, you need software. Excel is an option, but it doesn’t cover all the aspects you need to do your bookkeeping. An accounting package is therefore a better option!
What must an accounting package definitely include?
With an accounting package, you want to:
- Be able to issue invoices and automatically enter them into your accounts
- Be able to create quotations
- Submit all declarations in just a few clicks
- Be notified of important deadlines
- Receive an explanation at every step
Which accounting software is best for a self-employed pensioner?
User-friendly software such as Dexxter can help you with your admin, without any prior knowledge of bookkeeping.
Via Dexxter:
- Simply enter your income and expenses yourself.
- Your VAT declaration is prepared automatically.
- You receive clear explanations at every step.
- Submit your return with just a few clicks.
So, with the Dexxter accounting software, you can easily take control of your own bookkeeping. This means you don’t have to pay an expensive accountant to make your admin okay.
However, it can still be useful to be able to ask questions. Dexxter has a community where you can easily ask other self-employed people your questions. For accounting queries, you can contact a qualified accountant.
And the best part? Dexxter costs just a fraction of what an accountant would charge. Whereas a traditional accountancy firm can easily set you back hundreds of euros, with us you pay just a few dozen euros a month.
Still need advice from an accountant? That’s still possible!
You might be thinking: “What if I get stuck? Or have a question?” No problem. Even if you do your own bookkeeping via Dexxter, you can always call on a professional.
You can book individual consultation sessions with one of our partners. This way, you get help exactly when you need it, without the high fixed costs of a traditional accountant. This ensures your total costs remain much lower, whilst you can still be sure of accurate guidance.
Examples of advice for which you might want to consult an accountant:
- Applying for your VAT number
- Selecting different VAT schemes
- Guidance with your first tax return
- More complex tax questions
- Advice tailored to your personal situation
In summary: do I need an accountant as a retired self-employed person?
| Question | Answer |
|---|---|
| Do I need to hire an accountant? | No, you don’t have to. |
| Can I do my own bookkeeping? | Yes, easily via Dexxter! |
| What if I need advice? | You can book a one-off appointment with an advisor |
| How much does it cost? | Much less than a traditional accountant. Just 180 euros a year! |
| Is there help available to get started? | Yes, Dexxter offers a free bookkeeping course(in dutch) and a community where you can ask questions |
