Why Your Small Business Needs a Good Accountant
A good accountant pays for themselves through tax savings, avoids costly mistakes on returns, and frees up your time. The key is finding one who is qualified, communicates well, and understands your kind of business.
What Qualifications Should an Accountant Have?
Look for membership of a recognised professional body:
- ICAEW — Institute of Chartered Accountants in England and Wales (ACA qualification)
- ACCA — Association of Chartered Certified Accountants
- CIMA — Chartered Institute of Management Accountants
- AAT — Association of Accounting Technicians (bookkeeping and support roles)
- ICAS — Institute of Chartered Accountants of Scotland
What Services Do Small Business Accountants Provide?
- Annual accounts and corporation tax returns
- Self-assessment income tax for sole traders and directors
- VAT registration and quarterly VAT returns
- Payroll — PAYE, NI, RTI submissions to HMRC
- Bookkeeping
- Management accounts
- Business planning and HMRC enquiry support
Most small businesses on a fixed annual fee package pay £800 to £3,000 per year depending on turnover, structure, and services included. Hourly rates typically run £100 to £250.
Cloud Accounting Software
Most modern accountants use Xero, QuickBooks, or FreeAgent. HMRC's Making Tax Digital (MTD) initiative is extending the requirement for compatible software to most businesses — your accountant should be guiding you on compliance.
How to Find and Shortlist Accountants
- Ask for referrals from other small business owners in your sector
- Use the ICAEW, ACCA, or AAT online directories
- Check their experience with businesses of your size and in your industry
Questions to Ask
- What accounting software do you use, and is that included in your fee?
- Who will I work with day-to-day?
- How often will we speak, and how do you communicate?
- Do you offer any tax planning advice beyond completing returns?