Accountants for Professional Services Firms
Specialist accounting for consultants, advisors, agencies and service-based businesses across the UK.
Accounting That Works as Hard as You Do
Professional services firms — consultancies, management advisors, HR firms, IT service providers, marketing agencies and specialist advisors — have distinct accounting needs. Your income is largely time-based, your costs are mostly people, and your biggest financial risks are often around IR35, VAT on services and profit extraction. Magnum Accountancy understands the business model and gives you accounting that’s built around it.
Management Accounts & Reporting
Monthly or quarterly management accounts give you a clear picture of revenue, margins, utilisation and overhead — the numbers you actually need to run a services business. We prepare these in a format that’s meaningful for your type of firm, not just a standard P&L dump, so you can make faster, more confident decisions about headcount, pricing and investment.
VAT Returns & Compliance
VAT for professional services firms involves more nuance than many accountants appreciate — partial exemption, disbursements, cross-border service rules and the right VAT scheme for your turnover. We manage your quarterly VAT returns through MTD-compliant software, identify any reclaim opportunities and make sure you’re not over-declaring on client disbursements or inter-company recharges.
IR35 & Off-Payroll Working
If you supply services through a personal service company, IR35 remains one of the most significant tax risks you face. We review your contracts and working arrangements, advise on status determination and help you build the documentation needed to defend a compliant position. If you engage contractors through your own firm, we help you meet your off-payroll working obligations as a client organisation too.
Profit Extraction & Director Pay
For directors of professional services limited companies, the salary-dividend split is one of the most valuable decisions you make each year. We model the most tax-efficient structure for your circumstances, factoring in dividend allowances, higher-rate thresholds, pension contributions and any plans to retain profits in the business. We review this annually so it stays optimised as tax rules change.
Payroll & Employee Costs
People are your biggest cost — and your biggest asset. We manage payroll for professional services teams of all sizes, handling monthly RTI submissions, PAYE, National Insurance, benefits-in-kind and auto-enrolment compliance. We also advise on tax-efficient ways to reward staff, including salary sacrifice arrangements, EMI share option schemes and expense policies that hold up to HMRC scrutiny.
Growth Finance & Forecasting
Whether you’re planning to hire ahead of demand, open a second office, bring on a partner or explore an exit, your financial model needs to support the decision. We build revenue and cost forecasts tailored to service businesses — accounting for utilisation rates, pipeline conversion, seasonal billing patterns and the lag between winning work and receiving payment. You get the numbers to back your strategy, not just your year-end accounts.
Why Professional Services Firms Choose Magnum
We Know Service Business Models
We understand time-based billing, retainer income, project profitability and the cost pressures that come with a people-heavy business. No learning curve needed.
Advice Beyond the Numbers
We don’t just file your returns. We flag risks, spot tax-saving opportunities and give you commercial guidance — like a part-time FD at a fraction of the cost.
Transparent Fixed Fees
A fixed monthly fee covers everything you need — no surprise invoices when you call for advice. Predictable costs, unlimited support.
Let’s Talk About Your Professional Services Business
Book a free 30-minute call with Daxa to explore how we can help.
Daxa Khunti — Managing Director
📞 01223 297374 | ✉️ daxa@magnumaccountancy.com