How to choose an accountant for your business

Choosing an accountant is one of the most consequential decisions a business owner makes, yet most people do it once and rarely revisit the choice. The right accountant saves you money, keeps you compliant, and spots opportunities you would have missed. The wrong one files your returns and not much else.

Qualifications matter, but so does the right qualification

Not everyone who calls themselves an accountant is formally qualified. For most business needs, you want a Chartered Accountant (ACA or FCA from the ICAEW) or a Chartered Certified Accountant (ACCA). For tax-heavy work, look for a Chartered Tax Adviser (CTA) designation alongside the accountancy qualification. Ask directly: are you a member of the ICAEW, ACCA, or CIOT? If they cannot name a professional body, walk away.

Specialism is worth more than size

A 50-partner firm is not automatically better than a 10-person practice. What matters is whether they understand your sector. A Cambridge tech firm with R&D tax credit claims needs an accountant who handles those routinely, not one who sends them away to a specialist each year. A farming business in Suffolk needs agricultural accounts experience. Ask for two or three clients they currently work with in your industry, and ask what their last R&D or HMRC enquiry looked like.

Five questions worth asking at a first meeting

1. 1Who will actually work on my account day-to-day, and how do I reach them directly?
2. 2What accounting software do you use, and do you support clients who want to run their own bookkeeping?
3. 3How do you charge: fixed monthly retainer, hourly, or per project? What triggers out-of-scope charges?
4. 4When did you last handle a VAT inspection or HMRC enquiry, and how did it go?
5. 5Can you give me an example of advice you gave a client this year that saved them meaningful money?

Red flags to take seriously

• They cannot name a professional body membership or it lapsed
• Fixed-fee quotes that exclude everything: letters, meetings, HMRC correspondence, Companies House filings
• No mention of cloud accounting (still working entirely on desktop software and spreadsheets is a telling sign of how they run their practice)
• Vague answers about who handles your account: 'the team' is not an acceptable answer when you need someone you can actually call
• They lead with how cheap they are rather than what they will actually do for you

On fees: what you should expect to pay

For a small limited company with straightforward accounts, expect to pay £100-300 per month on a retainer covering statutory accounts, corporation tax, and basic advisory. Add £50-100 per month if you want payroll handled and monthly management accounts. Sole traders typically pay £50-150 per month. Significantly below these figures usually means something is not being done, or corners are being cut. Significantly above them is fine if the work warrants it.

Making the switch

Switching accountants is easier than most business owners assume. Your new accountant handles the professional clearance letter to your old one, collects the prior year papers, and takes it from there. The only real requirement is that you give adequate notice before the year-end work starts. There is no obligation to stay with an accountant who is not serving you well.