When to Hire an Accountant for Your Resale Business

You’ve got the stock, the customers, and the sales are coming in, but you’ve probably asked yourself: “Do I really need an accountant?”

The short answer? It depends on how much time, risk, and guesswork you’re comfortable living with. 

In this blog, we’ll walk through when it makes sense to get professional support and what a good accountant can actually do to keep your business compliant, profitable, and less stressful.

When to Hire an Accountant

Table of contents

• What does an accountant actually do for a resale business?

• Signs your second-hand business needs professional accounting

• How the right accountant can improve your profit margins

• Choosing an accountant who understands second-hand goods and VAT

• Conclusion

What does an accountant actually do for a resale business?

Does the word "accountant" still make you picture someone buried in receipts at tax time? Well, you're missing most of the value. 

For resale businesses, especially those dealing in used cars, watches, or jewellery, a good accountant does a lot more than just submit your year-end returns.

Here’s what they actually do:

• Track your income and costs properly
  Resale businesses often deal with stock that changes value, fluctuating margins, and partial payments. An accountant helps keep those figures accurate and organised, especially if you’re using the VAT Margin Scheme.

• Prepare and file your VAT returns
  VAT under the Margin Scheme isn’t straightforward. You can’t just calculate 20% of your sale price; you need detailed stock records, proof of margin eligibility, and careful reporting. An accountant ensures you stay compliant and don’t underpay (or overpay).

• Keep your records HMRC-ready
  HMRC can request to inspect your records at any time. A qualified accountant ensures your invoices, sales logs, and purchase records are tidy, complete, and audit-proof.

• Advise you on business structure and tax efficiency
  Should you stay as a sole trader or register a limited company? Are there better ways to pay yourself? These are the kinds of questions accountants handle every day and getting it right can save you serious money in the long run.

• Spot financial issues before they grow
  Whether it's creeping stock costs, pricing mismatches, or unpaid VAT, your accountant can flag things early before they become expensive mistakes.

Signs your second-hand business needs professional accounting 

It’s easy to assume you’re “not big enough yet” to need an accountant. But for second-hand businesses, it’s about complexity. And resale businesses tend to get complicated faster than expected.

Here are some signs it might be time to bring in a professional:

1. You’re constantly behind on bookkeeping
If you’re always playing catch-up with your records or struggling to find time to update spreadsheets, it’s a red flag. It only takes one bad VAT return or a surprise audit for that backlog to become a real problem.

2. You’re unsure how to handle VAT (especially the Margin Scheme)
If you're not 100% sure what goods qualify, how to calculate the margin, or whether your records meet HMRC’s standards, it's safer to get support. The rules are strict, and mistakes are costly.

3. You don’t know how profitable your business is
If you’re selling regularly but still wondering where the money goes, something’s missing. An accountant can help you understand your real margins, costs, and cash flow, not just sales volume.

4. You’re growing or planning to
More stock, more customers, more staff... that’s a great sign. But it also means more financial admin, more paperwork, and more tax obligations. Getting help early can prevent bigger problems later.

5. You feel like you’re guessing when it comes to taxes
Winging it with VAT, self-assessment, or year-end reports is risky business. If you’re relying on Google searches and hoping for the best, that’s your sign to get a second pair of (expert) eyes.

Needing help isn’t a weakness; it’s a smart move when your time and peace of mind are better spent on growing the business, not getting lost in receipts and reports.

How the right accountant can improve your profit margins

Hiring an accountant might feel like an expense, but the right accountant should pay for themselves over time. Not just by keeping you compliant, but by actively helping you make more money.

Here’s how:

They help you understand your true margins.

Say you’re selling used cars or luxury watches. You know what you paid, and what you sold it for, but what about the repairs, commissions, transport costs, or VAT you’ve overlooked? An accountant helps you factor in every hidden cost so you know what each sale is really worth.

They catch profit leaks early.

Are you underpricing stock? Losing money on high-ticket items? Paying VAT on goods that should qualify for the Margin Scheme? The right accountant spots these quiet losses before they chip away at your bottom line.

They advise on smarter stock purchases.

Over time, your accountant will notice patterns, like which types of goods give you the best return, or which suppliers consistently cost you more. They can help you make better buying decisions based on actual numbers, not just gut instinct.

They improve cash flow with better planning.

An accountant can forecast your income and outgoings, helping you avoid the “feast or famine” cycles that retail businesses often face. You’ll know when to reinvest in stock and when to hold back.

They reduce your tax bill legally.

From allowable expenses to choosing the right business structure, a good accountant helps you avoid overpaying tax. And with resale businesses, where margins are tight, every pound counts.

You’re not just hiring someone to do paperwork. You’re getting a partner who helps you run a more profitable, more sustainable resale business.

Choosing an accountant who understands second-hand goods and VAT

Not all accountants are created equal when it comes to resale businesses. 

Selling second-hand goods under the VAT Margin Scheme comes with its own set of rules, quirks, and record-keeping requirements. That’s why it’s not enough to hire just any accountant; you need one who understands your type of business.

Here’s what to look for:

1. Experience with second-hand dealers

Ask whether they’ve worked with used car dealerships, watch dealers, or jewellers. If they pause or say, “We’ll look into it,” they’re probably not the right fit. You want someone who already knows the challenges of tracking margins, mixed stock, and VAT eligibility.

2. Knowledge of the VAT Margin Scheme

This is a big one. Many general accountants aren’t familiar with the scheme, and using someone who doesn’t understand how it works could lead to errors, penalties, or missed savings. Ask for real examples of how they’ve handled VAT returns under the scheme.

3. Ability to support your growth

Whether you’re a one-person business or you’ve got a growing team, your accountant should be able to grow with you. That means helping with things like software integration, forecasting, and HMRC correspondence..

4. Clear communication

Avoid jargon-heavy advice or accountants who make you feel silly for asking questions. You want someone who explains things clearly and treats you like a partner, not a task.

Conclusion

Hiring an accountant isn’t just about compliance, it’s about making smarter decisions, staying on top of your finances, and freeing up your time. And when that accountant understands the resale space, Margin Scheme rules, inventory tracking, and fluctuating margins, you’re gaining a real asset to your business.

At Rhombus Accounting Firm, we work with second-hand businesses across the UK, used car dealers, watch shops, jewellers, to make VAT and accounting one less thing to worry about.

Thanks for reading!

Meet Lewis

Lewis is a professional accountant and founder of Rhombus Accounting. He regularly shares his knowledge and best advice here on his blog and on other channels such as LinkedIn.

Book a call today to learn more about what Lewis and Rhombus Accounting can do for you.