Question 1

Who do you help?

Accepted Answer

At Firthwood Finance, we work with a range of clients at different stages, providing support that’s tailored to their needs:

Startups – Helping you get set up properly, stay compliant, and build strong financial foundations from day one.
SMEs – Providing ongoing accounting support, financial insight, and strategic guidance to help you scale with confidence.
Sole traders – Keeping your records organised, handling your tax returns, and making sure you’re operating as tax efficiently as possible.
Individuals – Supporting with self-assessment tax returns, ensuring accuracy, compliance, and peace of mind.

Whether you’re just starting out or looking to grow, we focus on making your finances clear, compliant, and working for you.

Question 2

What accounting software do you use?

Accepted Answer

We’re a Xero partner practice, so we often recommend Xero to our clients. However, we also have experience working with a wide range of accounting systems and won’t ask you to change software simply to work with us. If you’ve already invested time and money into your current system, we can work with it and still provide the same high-quality service.

That said, every accounting platform has its strengths and limitations. If we believe there may be a more efficient solution for your business, we’ll explain the pros and cons clearly and help you make an informed decision.

We chose to partner with Xero because, through our experience supporting a variety of growing businesses, we believe it offers one of the best solutions for small and medium-sized companies. It’s intuitive, user-friendly, well supported, and integrates with a wide range of tools that can help streamline your finances and improve efficiency.

If you’re considering changing systems, we’d be happy to show you the benefits of Xero and guide you through the process of deciding whether it’s the right fit for your business.

Question 3

How difficult is it to change accountants?

Accepted Answer

If you’re considering switching accountants, there’s a good chance you’re not completely happy with the service you’re currently receiving, and it’s completely understandable to feel unsure about making a change.

Switching accountants can feel like a hassle, especially if you’ve already invested time and trust in your current one. It’s natural to worry that it might be disruptive or complicated.

In reality, changing accountants is usually much more straightforward than people expect—and most of the work is handled for you.

Once you decide to move, we take care of the transition from start to finish. This includes contacting your existing accountant, requesting the necessary records, and ensuring everything is transferred over smoothly and professionally. There’s no need for awkward conversations or complicated admin on your side.

We’ll also review your current position as part of the onboarding process, so you can move forward with clarity and confidence.

The goal is to make the switch as seamless as possible, so you can focus on getting the support you need, without the stress of managing the change yourself.

Question 4

When should we hire an accountant?

Accepted Answer

If you’re starting a business, it’s never too early to speak to an accountant, but the right time to hire one is usually sooner than you think.

Many founders wait until their first tax deadline, but bringing an accountant in earlier can save you time, money, and stress.

For startups and limited companies, you should consider hiring an accountant when you:
Set up or start trading – Getting your structure, registrations, and record-keeping right from day one avoids costly fixes later.
Are unsure about taxes or compliance – VAT, Corporation Tax, and filing requirements can quickly become overwhelming.
Begin to grow – If revenue is increasing, you’re hiring staff, or cash flow is becoming harder to manage, having clear financial insight becomes critical.
Want to focus on the business – Your time is better spent on growth, customers, and strategy—not admin and deadlines.

For sole traders, it’s worth hiring an accountant when:
You earn more than £1,000 in a tax year from self-employment (this is the trading allowance threshold, after which you must register and declare your income to HMRC).
You start earning regular income and want to ensure everything is recorded correctly.
You’re unsure what expenses you can claim, or want to make sure you’re tax efficient.
Your income is increasing and you’re considering whether to remain a sole trader or move to a limited company.
You’re spending too much time on bookkeeping instead of running your business.

For individuals completing a tax return, an accountant can help when:
You have multiple income sources (e.g. rental income, dividends, freelance work).
You’re not confident completing your return or want peace of mind it’s accurate.
You want to minimise your tax bill legally and make full use of available allowances.
You’ve received a notice from HMRC or are catching up on late filings.

For most people, an accountant isn’t just about ticking compliance boxes, it’s about having confidence that everything is handled properly, while also making smarter financial decisions.

Question 5

Are there any hidden costs?

Accepted Answer

No—there are no hidden costs.

We operate on a fixed monthly subscription, so you always know exactly what you’re paying and when. There are no surprise bills at the end of the month or unexpected charges for ad hoc queries.

We’ve found this approach not only provides clarity, but also makes things much easier to manage from a cash flow perspective—especially for growing businesses.

Question 6

When should I register for VAT?

Accepted Answer

You must register for VAT with HMRC if your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period (this is the current UK threshold). This isn’t based on your accounting year—it’s any consecutive 12 months, so it’s important to keep an eye on your revenue as you grow.

You also need to register if you expect your turnover to exceed £90,000 in the next 30 days alone.

Once you go over the threshold, you must register within 30 days of the end of the month you exceeded it. Missing this deadline can result in penalties, so it’s something to monitor closely.

Some businesses also choose to register voluntarily before reaching the threshold. This can be beneficial if:

You work mainly with VAT-registered business clients (who can reclaim VAT)
You have significant startup costs and want to reclaim VAT on purchases
You want to present a larger, more established business profile

However, VAT registration also adds extra reporting requirements, so it’s not always the right move early on.

We can help you monitor your turnover and advise on the right time to register, so you stay compliant while making the decision that works best for your business.

Question 7

How often will we communicate?

Accepted Answer

We don’t believe in limiting communication or charging extra every time you need support. While your package is based on a fixed monthly subscription (which keeps things simple and predictable for you), we’re always contactable when you need us.

Alongside email, you’ll also have access to a direct messaging channel for quick questions, so you’re not waiting days for replies to straightforward queries. This helps keep things moving and avoids the frustration of slow email chains.

In practice, communication depends on the level of service you choose and the nature of your business, but you can expect regular check-ins as part of your ongoing support, along with updates at key points such as management reporting, VAT deadlines, or year-end.

Day-to-day questions are always welcome, we’re here when things come up, not just at scheduled points in the month. We aim to be responsive and accessible, so you’re never left waiting when you need clarity.

If your needs change over time, we can always adjust your package to reflect a higher or lower level of support, but any changes are always discussed and agreed in advance, so there are no surprises.

Question 8

What makes you different from other accountants?

Accepted Answer

We’re not just focused on producing year-end accounts and tax returns—we work as a proactive finance partner to help you understand your numbers and make better decisions throughout the year.

A lot of traditional accountancy services are reactive, meaning you only hear from them when something is due or when a problem arises. We take a more modern approach, working closely with startups, sole traders, and SMEs to keep things running smoothly in real time, not just at year-end.

A big part of our approach is keeping things simple and effective. We avoid unnecessary complexity, over-engineering processes, or adding layers of reporting that don’t actually add value. Instead, we focus on what really matters, clear financial information, practical support, and straightforward communication. This keeps things efficient for you and cost-effective in how the service is delivered.

Our service is built around:

Fixed monthly pricing – so you always know what you’re paying, with no unexpected bills
Clear, simple communication – including direct messaging for quick questions, so you’re not stuck waiting on email replies
Support that grows with you – whether you’re just starting out or scaling, we adapt the service as your business evolves
A focus on clarity and growth – not just compliance, but helping you understand your numbers and improve profitability

Most importantly, we make accounting feel less like a burden and more like something that actually supports your business decisions.

At Firthwood Finance, we aim to be the kind of accountant you can actually talk to—someone who’s accessible, responsive, and invested in your success, not just your deadlines.

Question 9

What happens if I fall behind on my bookkeeping or taxes?

Accepted Answer

Ideally, it’s always easier, and less stressful, to stay on top of your bookkeeping and tax deadlines from the start. Keeping things organised as you go helps avoid pressure building up, reduces the risk of penalties, and gives you much better visibility of how your business is performing.

That said, we completely understand that when you’re running a busy business, bookkeeping and tax admin can sometimes get pushed down the list. If you’ve fallen behind or have outstanding filings, you’re not alone, and it’s something we deal with regularly.

If this happens, we can work with you to get everything back on track. This might include bringing your records up to date, preparing and submitting any late filings, and putting a simple, manageable system in place going forward so things don’t build up again.

Our focus is always on making the process as straightforward and stress-free as possible, no matter the starting point. The key is just getting things up to date, once that’s done, we can help keep everything organised moving forward so you stay in control.

Question 10

What records do I need to keep?

Accepted Answer

We can take care of all your record keeping and store this in a way that suits you.

For your day-to-day finances, we’ll need copies of your invoices, receipts for purchases, and clear records of your sales and income. This ensures your accounts are accurate and that you’re claiming all allowable expenses.

You’re also required to keep basic financial records for tax purposes, including bank statements, expense receipts, sales records, and any relevant business documents. Don’t worry, we’ll guide you on exactly what’s needed and make sure everything is compliant.

How you provide this information is flexible. You can send documents directly to us, or give us access to a shared inbox or folder that you manage—whatever works best for you.

We can also help set up automated expense tracking systems, which significantly reduce the burden of collecting and submitting receipts manually.

Once everything is set up, your finances can run smoothly with as much or as little input from you as you’d like—whether you prefer to stay hands-on or leave it to us.