How to choose a business accountant

Choosing the right accountant is one of the most important early decisions you’ll make. A good accountant does more than just file your taxes; they act as a financial partner who helps you manage your money effectively, stay compliant with HMRC, and save you valuable time and stress. Think of them not as a cost, but as an investment in your business's long-term health.

What does a business accountant do?

While their exact services can vary, a good small business accountant will typically handle:

• Year-End Accounts & Tax Returns: Preparing and filing your annual accounts and submitting your Self Assessment or Corporation Tax return to HMRC.
• VAT Returns: If you are VAT registered, they will manage and submit your quarterly returns.
• Payroll: Setting up and running your payroll system to pay staff correctly and on time, including managing pensions and National Insurance.
• Tax Planning: Providing proactive advice on how to structure your business and finances in the most tax-efficient way.
• Bookkeeping: Either managing your bookkeeping for you or advising you on the best software (like Xero or QuickBooks) and practices to keep your records in order.
• HMRC Liaison: Acting as your official agent, dealing with HMRC on your behalf so you don’t have to.

How to find the right accountant

Finding someone you can trust with your finances can feel daunting. Here’s a simple process to follow:

1. Check for Qualifications: Look for accountants who are members of a professional body. In the UK, the main ones are the ACCA (Association of Chartered Certified Accountants) and the ICAEW (Institute of Chartered Accountants in England and Wales). This ensures they are qualified and regulated.
2. Ask for Recommendations: The best referrals often come from other small business owners. Ask people in your network who they use and if they are happy with the service.
3. Look for a Specialist: Some accountants specialise in specific industries, like hospitality, retail, or creative fields. An accountant who understands the unique challenges of your sector can provide much more valuable advice.
4. Interview a Few Candidates: Don’t just go with the first one you find. Have a brief, informal chat with two or three different accountants to see who you feel most comfortable with.

Key questions to ask

During your chat, make sure you ask a few key questions to understand exactly what you’re signing up for:

• How do you structure your fees? Is it a fixed monthly fee or do you charge by the hour?
• What services are included in that fee? Are there extra charges for phone calls or advice?
• Which accounting software do you prefer to work with?
• Who will be my main point of contact at the firm?
• Can you give me an example of how you’ve helped a business like mine?

Top Tip: A great accountant is proactive. They should be contacting you with advice and reminders, not just reacting when you ask a question. Find someone who shows a genuine interest in helping your business succeed.