(And why “they file everything on time” simply isn’t enough anymore)

“They’re fine… I suppose.”

This is how the conversation usually begins.

An education-sector director — perhaps running a nursery, a private training company, an alternative provision setting, or an online learning platform — sits across from us and says:

“We already have an accountant.

They seem fine.

We just don’t really hear from them.”

There’s no frustration.

No criticism.

Just uncertainty.

The accounts are filed.

The tax returns go in.

Deadlines are met.

But something doesn’t feel fully in control.

At Hammond & Co, we hear this regularly from education-sector limited companies.

And the truth is simple:

A good accountant today should be doing far more than submitting forms once a year.

Why Education Businesses Need More Than Basic Compliance

Education-sector companies operate in a uniquely demanding environment.

They are often:

• Staff-heavy
  
• Ethically driven
  
• Cashflow-sensitive
  
• Subject to regulation and oversight
  
• Emotionally demanding for directors
  

Most education directors enter the sector to make a difference — not to become experts in Corporation Tax, VAT, payroll legislation or Director’s Loan Accounts.

When an accountant:

• Only appears at year-end
  
• Uses technical language without explanation
  
• Reacts instead of plans
  
• Avoids difficult conversations
  

…directors are left carrying risk they don’t even know exists.

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 has already happened
  
• Filing what HMRC requires
  
• Correcting issues after the fact
  

That leaves a gap.

And in that gap is where:

• Unexpected tax bills
  
• Cashflow pressure
  
• Director stress
  
• Missed planning opportunities
  

quietly build.

A Familiar Pattern: Compliant, But Not Confident

We often meet directors who:

• Don’t fully understand their own accounts
  
• Aren’t sure how much tax to set aside
  
• Take money out cautiously “just in case”
  
• Feel anxious before every VAT quarter
  
• Avoid asking questions because they don’t want to sound uninformed
  

Nothing is technically wrong.

But nothing feels fully clear either.

Compliance alone does not create confidence.

So What Should a Good Accountant Be Doing?

Let’s look at this through the lens of what education-sector directors genuinely need.

1. Explaining the Numbers — Not Just Producing Them

A good accountant doesn’t simply send accounts with a covering email.

They explain:

• What the numbers actually mean
  
• What is normal for your type of education business
  
• Where pressure is building
  
• Where opportunity may exist
  
• What you should be watching
  

You should never feel embarrassed asking:

“Can you explain that in plain English?”

If you don’t understand your numbers, you can’t make confident decisions.

And that isn’t your failure.

2. Planning Tax Before It Becomes a Problem

One of the most common frustrations we hear:

“We only find out what we owe when it’s too late to change anything.”

A proactive accountant will:

• Discuss tax planning before year-end
  
• Review director salary and dividend strategy
  
• Flag Corporation Tax early
  
• Explain personal tax implications clearly
  
• Model different scenarios if needed
  

Education businesses often operate on tight margins.

Unexpected tax liabilities create avoidable pressure.

Forward planning reduces that pressure dramatically.

3. Understanding Education-Sector Cashflow

Cashflow in education businesses is rarely smooth.

There may be:

• Term-based income cycles
  
• Funding delays
  
• Grant timing gaps
  
• Payroll pressure
  
• Seasonal enrolment fluctuations
  
• Reinvestment into facilities or learning materials
  

A good accountant doesn’t just look at profit.

They ask:

“Can the business comfortably afford this right now?”

That question matters when it comes to:

• Director pay
  
• Hiring decisions
  
• Expansion
  
• Premises commitments
  

Profit does not always equal available cash — and education businesses feel that more than most sectors.

4. Proactively Flagging Risk (Even When It’s Uncomfortable)

Some of the most valuable advice is not always easy to hear.

A good accountant should be willing to say:

• “Your Director’s Loan Account is drifting.”
  
• “This level of drawings isn’t sustainable.”
  
• “You’re underestimating your tax exposure.”
  
• “Your systems haven’t kept up with your growth.”
  

Silence does not equal safety.

Education directors already carry responsibility for staff, learners and outcomes.

They should not unknowingly carry hidden financial risk as well.

5. Moving Beyond Historic Year-End Accounts

Year-end accounts are important — but they are historical.

By the time they’re filed, the decisions have already been made.

Growing education companies often benefit from:

• Regular management accounts
  
• Cashflow forecasting
  
• Quarterly reviews
  
• Forward-looking tax conversations
  

This shifts accounting from a once-a-year event to an ongoing decision-support tool.

And that changes everything.

6. Supporting the Director — Not Just the Business

This is rarely discussed openly, but it matters.

Education-sector directors often:

• Pay staff before themselves
  
• Delay their own income
  
• Carry financial stress quietly
  
• Feel personally responsible for everyone’s livelihood
  
• Avoid drawing money “just in case”
  

A good accountant recognises this.

They help create:

• Predictable director income
  
• Clear financial boundaries
  
• Structured tax planning
  
• Confidence in affordability
  

Financial clarity reduces emotional load.

And that is not a small thing.

7. Adapting as Your Education Business Evolves

What worked when you:

• Had three staff
  
• Delivered one programme
  
• Operated from a small space
  

…may not work when you:

• Employ fifteen people
  
• Deliver hybrid or online courses
  
• Expand into new services
  
• Take on additional premises
  

A good accountant evolves with you.

They don’t keep applying last year’s thinking to a business that has clearly grown.

Warning Signs You May Have Outgrown Your Accountant

Many education directors don’t realise they’ve outgrown their accountant until they notice:

• Only hearing from them once a year
  
• No conversation about planning or cashflow
  
• Tax explained after it’s due
  
• Questions answered vaguely
  
• Feeling like you’re “bothering” them
  

This doesn’t mean your accountant is bad.

It may simply mean they are no longer right for the stage your business is at.

What We Believe at Hammond & Co

At Hammond & Co, 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 satisfy HMRC
  
• Reduce stress, not add to it
  

Our role is not to take control away from you.

It is to give you clarity, structure and confidence.

A Moment We See Often

There is usually a pause in these conversations.

A director leans back and says:

“I didn’t realise accounting could feel like this.”

Not rushed.

Not intimidating.

Not reactive.

Just clear.

And that is usually the moment things begin to change.

A Final Thought for Education-Sector Directors

If your accountant:

• Files everything correctly
  
• Meets deadlines
  
• Keeps you compliant
  

That is the baseline.

It is not the 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 are quietly wondering whether you’re receiving that level of support —
That question is worth listening to.