How to pick an accountant for a small business

You want a qualified accountant who uses the same software you do, quotes a fixed monthly fee, and picks up the phone when you’ve got a question in April.

A good accountant saves you more than they cost – in tax, in time, and in avoided mistakes. A bad one costs you more than just their fee. There are accountants listed on WotsItCalled, and the gap between a proactive one and a once-a-year form-filler is massive. Here’s how to tell the difference before you hand over the books.

Check they’re actually qualified

In the UK, anyone can call themselves an accountant – there’s no legal restriction on the title. What you want is a chartered or certified qualification from a recognised body. The main ones:

• ACCA (Association of Chartered Certified Accountants) – common for small business and general practice.
• ICAEW (Institute of Chartered Accountants in England and Wales) – the traditional “chartered” route. Often larger firms.
• CIMA (Chartered Institute of Management Accountants) – management accounting focus. Less common for tax work.
• AAT (Association of Accounting Technicians) – bookkeeper-level qualification, fine for simpler businesses, can work under a chartered supervisor.

Check them on the professional body’s public register. It confirms they’re current, qualified, and in good standing. If they’re unwilling to tell you what they’re qualified under, walk away.

Match the accountant to the size of your business

A Big Four firm won’t want your sole-trader tax return, and a bookkeeper isn’t going to run your R&D tax credit claim. The right level depends on where you are:

• Sole trader, under £50k turnover. A bookkeeper or a small local practice is fine. You want someone who handles Self Assessment and basic VAT if you’re registered.
• Limited company, small. Small local practice. They should handle accounts, corporation tax, Self Assessment, payroll, VAT, and Companies House filings under one monthly fee.
• Growing business. A practice with tax specialists in-house. You’ll start needing advice on things like R&D claims, EMI schemes, or paying yourself efficiently.
• Multi-director, complex structure. You’re into mid-tier firm territory. Higher fees, but the advice pays for itself.

Size matters in both directions. A tiny practice will drown under a complex business. A big firm will treat a tiny business as an afterthought.

Software, automation, and how they work

A modern accountant uses cloud software. If they’re still asking for a shoebox of receipts in March, they’re dragging you along with them. Ask:

• What accounting software do you use? Xero, QuickBooks, FreeAgent, Sage. Any of those are fine. No software at all, or something you’ve never heard of – red flag.
• Can I keep the license and data if we part ways? You want to own your own books. If they hold the license hostage, you’re stuck.
• Do you use receipt-capture apps? Dext, Hubdoc, AutoEntry. Means you photograph a receipt and it lands in the accounts automatically.
• How often will you look at my numbers? Monthly is the bar. Once a year is a form-filler, not an accountant.

Pricing – fixed fees or hourly

Small business accountancy has mostly moved to fixed monthly fees. This is a good thing. It means you know what you’re paying, you can ring them without fearing the clock, and they’ve priced the work based on what’s actually involved.

• Typical range for a small Ltd. £60-200 per month depending on complexity. Turnover, number of employees, VAT status all affect it.
• What’s included. Annual accounts, corporation tax, director’s Self Assessment, payroll for a few staff, VAT returns, Companies House. A decent proposal spells it out.
• What’s extra. R&D claims, tax planning advice, referencing for mortgages, changes to share structure. These are usually quoted separately.
• Watch for teaser pricing. “£29/month!” usually means year one, before everything else is charged as add-ons.

Six questions to ask on a first call

1. Who specifically will do my work? The senior partner, a junior, or an offshore team? All can be fine – but you should know.
2. How do you communicate? Email, phone, client portal. What’s the response time you aim for?
3. What do you need from me, and when? A decent accountant has a monthly rhythm – documents in by the 7th, reports out by the 15th.
4. What’s your year-end process? How long after year-end will my accounts be ready? Three months is quick. Six months is average. A year is lazy.
5. Have you worked with businesses like mine before? Industry experience matters. A consultancy, a shop, a tradesman, a SaaS company – different tax quirks, different advice.
6. What happens if I leave? Portable data, notice period, final bill, handover. The good ones make it easy. The bad ones lock you in.

Where to start looking

The accountants directory covers small and mid-size practices across the UK. Manchester, Liverpool, Leeds, Bristol. Pick three, book free intro calls, and ask the questions above.

Switching accountants: how to do it cleanly

If you’re unhappy with your current accountant, switching is usually much easier than people fear. The new firm handles most of it – it’s called a “professional clearance” and it’s a standard process:

• Pick the new accountant first. Don’t leave the old one until you’ve got a new one lined up. Gaps cause missed deadlines.
• Sign a new engagement letter. The new firm will ask you to sign a letter agreeing the scope and fees.
• They write to the old firm. Asking for a professional clearance and any documents they hold. The old firm is professionally obliged to respond.
• Software access transfers. If you own your Xero or QuickBooks licence, you just add the new firm as advisor. If the old firm owns it, you may need to migrate data.
• Pay any outstanding bills. Old firms can legally withhold documents for unpaid fees. Clear them.

The short version

• Check they’re chartered or certified. Anyone can call themselves an accountant.
• Match practice size to business size. Tiny practices drown, big ones ignore.
• Cloud software and fixed monthly fees are the modern standard.
• Ask who actually does your work, how often, and what the year-end timeline is.
• Make sure you own your books and can walk away cleanly if you need to.

WotsItCalled is a free UK business directory. No signup, no catch. Find the place everyone’s on about, or browse the full accountants directory.