(And why “they file the accounts on time” isn’t enough anymore)
“They’re fine… I think?”
This is usually how the conversation starts.
An education business director — perhaps a nursery owner, a private training provider, or the founder of an online education company — sits with us and says:
“We’ve got an accountant already.
They seem fine.
We just don’t really hear from them much.”
There’s no anger in their voice.
No accusation.
Just uncertainty.
They’re compliant.
The accounts are filed.
The tax returns go in.
But something doesn’t feel right.
At Accounting Matters, we hear this all the time — especially from education-sector directors who are juggling staff, learners, regulators, parents, funding bodies, and cashflow pressures.
And the truth is this:
A good accountant today should be doing far more than submitting forms once a year.
Why education businesses need more from their accountant
Education-sector limited companies operate in a uniquely demanding environment.
They are often:
- Staff-heavy
- Ethically driven
- Cashflow-sensitive
- Highly regulated
- Personally demanding for directors
Many directors come into education to make a difference — not to become tax experts or compliance managers.
So when an accountant:
- Only appears at year-end
- Uses jargon without explanation
- Reacts instead of planning
…directors are left carrying risk they didn’t even know existed.
The quiet assumption that causes problems
Most education directors assume:
“If there was a problem, my accountant would tell me.”
But many traditional accountancy relationships are reactive by design.
They focus on:
- Reporting what already happened
- Filing what HMRC requires
- Correcting issues after the fact
This leaves a gap — and that gap is where stress, tax shocks, and poor decisions live.
A familiar story: compliance without clarity
We often meet education directors who:
- Don’t fully understand their own accounts
- Are unsure how much tax to set aside
- Take money out cautiously “just in case”
- Feel nervous before every VAT quarter
- Avoid asking questions because they don’t want to sound foolish
Nothing is technically wrong.
But nothing feels under control either.
So what should a good accountant be doing?
Let’s break this down properly — through the lens of what education-sector directors actually need.
1. Explaining the numbers — not just producing them
A good accountant doesn’t just send accounts.
They explain:
- What the numbers mean
- What’s normal for your type of education business
- Where risk is building
- Where opportunity exists
Education directors should never feel embarrassed asking:
“Can you explain this in plain English?”
If you don’t understand your numbers, you can’t make confident decisions — and that’s not your failure.
2. Helping you plan before tax becomes a problem
One of the biggest frustrations we hear is:
“We only find out what we owe when it’s too late to change anything.”
A good accountant should:
- Talk about tax before the year-end
- Help you plan director pay sensibly
- Flag Corporation Tax early
- Explain personal tax consequences clearly
Education businesses often operate on tight margins and ethical considerations.
Surprise tax bills create unnecessary pressure — and they’re usually avoidable.
3. Understanding education-sector cashflow realities
Cashflow in education businesses is rarely smooth.
Good accountants understand:
- Term-time patterns
- Funding delays
- Payroll pressure
- Seasonal quiet periods
- Reinvestment cycles
They don’t just look at profit.
They ask:
“Can the business actually afford this right now?”
This matters enormously for:
- Director pay
- Staffing decisions
- Growth planning
4. Proactively flagging risk (even when it’s uncomfortable)
Some of the most important advice isn’t comfortable.
A good accountant should be willing to say:
- “This drawing strategy is risky”
- “Your Director’s Loan Account is drifting”
- “You’re underestimating your tax exposure”
- “Your systems haven’t kept up with growth”
Silence is not safety.
Education directors carry enough responsibility already — they shouldn’t also be unknowingly carrying hidden financial risk.
5. Helping you move beyond year-end accounts
Year-end accounts are essential — but they’re historic.
A good accountant helps you:
- Look forward, not just back
- Understand performance during the year
- Make decisions with current information
- Feel confident about affordability
For growing education businesses, management accounts and regular reviews are often the difference between calm growth and constant stress.
6. Supporting director wellbeing, not just compliance
This is rarely talked about — but it matters.
Education-sector directors often:
- Pay staff before themselves
- Carry personal financial stress quietly
- Feel responsible for everyone else’s security
- Avoid taking money out “just in case”
A good accountant recognises this and helps create:
- Predictable pay
- Clear boundaries
- Confidence in decision-making
Financial clarity reduces emotional load.
7. Adapting advice as your education business evolves
What worked when you:
- Had 3 staff
- Ran one course
- Delivered locally
…may not work when you:
- Employ 15 people
- Deliver online and in person
- Expand into new services
- Take on premises
A good accountant evolves with you.
They don’t keep doing “what worked last year” when the business has clearly moved on.
Warning signs your accountant isn’t doing enough
Many education directors don’t realise they’ve outgrown their accountant until they notice things like:
- Only hearing from them once a year
- No discussion about cashflow or planning
- Tax explained after it’s due
- Questions answered vaguely or defensively
- Feeling like you’re “bothering them”
None of this means your accountant is bad.
But it may mean they’re no longer right for the stage your business is at.
What we believe at Accounting Matters
We believe a good accountant for an education-sector limited company should:
- Be proactive, not reactive
- Explain, not confuse
- Plan, not just report
- Support directors, not just HMRC
- Reduce stress, not add to it
Our role isn’t to take control away from you — it’s to give you clarity and confidence.
A moment we see often
There’s usually a point in conversations like this where education directors pause and say:
“I didn’t realise accounting could feel like this.”
Not rushed.
Not intimidating.
Not reactive.
Just clear.
That’s when things change.
A final thought for education-sector directors
If your accountant:
- Files everything correctly
- Meets deadlines
- Keeps you compliant
That’s a baseline — not a gold standard.
A good accountant should help you:
- Sleep better
- Plan ahead
- Pay yourself confidently
- Grow sustainably
- Feel in control of your business
And if you’re quietly wondering whether you’re getting that level of support — that question alone is worth listening to.