Accountant vs. Tax Advisor – Who Do You Need?

What is the Difference Between an Accountant and a Tax Advisor?

One of the most common questions we receive from self-employed professionals and business owners is: which profession exactly do I need? An accountant or a tax advisor? Or perhaps both?

In short: both deal with tax matters, but in different ways. An accountant is the foundation – they manage your books, transfer data to the tax authorities, and ensure proper reporting. A tax advisor, on the other hand, focuses on planning: how to organize your business activities to pay less tax, while remaining fully compliant with the law.

Most self-employed professionals and business owners we see at Ben Or Kook & Co. need an accountant. Some, particularly company owners or those with large-scale operations, also benefit from ongoing tax consulting. We'll discuss this in detail.

What Does an Accountant Do?

An accountant is essentially your interface with the tax authority and other government agencies. He is not just organizing accounts – he is responsible for legal and proper reporting.

Main responsibilities:

• Daily bookkeeping – recording income, expenses, invoices, payments. If you are a exempt tradesperson or licensed tradesperson, this is essential.
• Annual report – preparing the report for the tax authority by the filing deadline (usually three months after the end of the tax year).
• Tax advance payments – assistance in calculating and planning your monthly or quarterly payments.
• VAT report – if you are VAT registered, periodic reporting to the tax authority.
• Payroll and National Insurance – if you have employees, payroll management, National Insurance reporting, severance fund, and pension insurance.
• Basic consulting – remarks during the report on issues that could trigger an audit or problem.

An accountant is a licensed professional certified by the tax authority. He must be qualified and officially registered. This is not something you can do yourself (or not in fully legal form) even if you are experienced with spreadsheets.