Why Growing Service Based Businesses Need Financial Expertise Now
- Veshali Patel
- Jul 8
- 4 min read
Running a service based business can mean you have lots of multi tasking to do. And at times it can become overwhelming. One minute you’re working on client work and the next you’ve got your head in your finances trying to work out why your cash flow is all over the place. It’s totally normal, don’t worry!
If you're a VAT-registered service business that's been growing (which is great!), you've probably noticed that the financial side of things has become a bit more... complicated.
Further, what got you to where you are now might not be what gets you to where you want to be. And that's exactly why growing service businesses need proper financial expertise more than ever.
The Growing Pains Are Real
Remember when your biggest financial worry was whether that invoice would be paid on time? Those were simpler days! Now you're dealing with:
VAT returns that actually matter (and HMRC notices when you get them wrong)
Multiple revenue streams from different services or client types
Team costs that go beyond just paying yourself
Investment decisions about new software, equipment, or office space
Tax planning that's suddenly become very important
This is the point where service business owners realise they've outgrown their "wing it and hope for the best" approach to their finances.
Why DIY Isn't Cutting It Anymore
You started your business because you're brilliant at what you do, whether that's marketing, consulting, design, or any other service. And was probably hoping that this wouldn’t make you a part-time accountant, too.
Yet here you are, spending evenings trying to reconcile bank statements or panicking about whether you've claimed all your allowable expenses. That's time you could be spending on:
Growing your client base
Developing new services
Actually having a life outside work
Plus, let's be honest, when you're juggling client work with financial admin, something's going to slip. And it's usually the financial stuff that gets pushed to the bottom of the pile until it becomes urgent. That’s when the mistakes happen.
The Cost of Getting It Wrong
As your business grows, the stakes get higher. A small mistake when you're turning over £50k is annoying. The same mistake when you're turning over £500k? That could be detrimental.
We're talking about:
HMRC penalties that could have been easily avoided
Cash flow crisis because you didn't see them coming
Missed opportunities for tax savings
Poor business decisions based on unclear financial data
One of our clients came to us after they'd accidentally been underpaying VAT for six months. The bill (including penalties) nearly cost them their business. All because they'd been trying to handle their own VAT returns while running a rapidly growing consultancy.
What Financial Expertise Actually Looks Like
Having an accountant by your side isn't just about someone doing your books (though that's part of it). You’ll also have a financial partner who:
Keeps you compliant – VAT returns filed correctly and on time, corporation tax sorted, all the regulatory boxes ticked without you having to think about it.
Gives you clarity – Monthly management accounts that actually make sense, cash flow forecasts that help you plan, and financial reports that show you what's really happening in your business.
Helps you make better decisions – Should you take on that big contract? Can you afford to hire another team member? Is it worth investing in that new software? Your accountant should be helping you answer these questions with confidence.
Saves you money – Through proper tax planning, claiming all available reliefs, and helping you structure your business efficiently.
Saves you time – So you can focus on what you do best instead of wrestling with receipts at 11pm on the day your tax bill is due!
The Right Time Is Now
"But we're not big enough yet". We hear this a lot. But if you're VAT registered and growing, you're already big enough to benefit from professional financial expertise. In fact, getting it sorted now will make your future growth so much smoother.
Think of it as an investment in your business's future. Yes, it costs money upfront, but the time you'll save, the mistakes you'll avoid, and the opportunities you'll spot will more than pay for itself.
What to Look For
Not all accountants are created equal, especially when it comes to service businesses. You want someone who:
Understands your industry and the unique challenges you face
Uses modern, cloud-based systems that integrate with your existing tools
Communicates in plain English rather than accounting jargon
Is proactive about reaching out with advice, not just reactive to your questions
Offers strategic support alongside the compliance work
Making the Move
Ready to stop treating your finances like a chore or a burden and start using them as a tool for growth? The first step is having an honest conversation with an accountant like Pinnacle Advisory Services® about where your business is now and where you want it to be.
Your future self (and your stress levels) will thank you for it.
At Pinnacle Advisory Services, we specialise in helping growing service businesses get their finances sorted so they can focus on what they do best. If you'd like to chat about how we can support your business's growth, get in touch – we'd love to hear from you.
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