How to choose an accountant for your business

Published Wednesday 18 March 2026

Table of contents

• Top tips for choosing an accountant
• Choose a certified or chartered accountant
• Look for an accountant with relevant expertise
• Ask yourself if location matters
• Interview several candidates before you decide
• Decide how the accounting work will be divided
• Get someone who's proactive about saving you money
• Always negotiate fees
• Do background checks
• Good accountants will help your company grow
• FAQs on choosing an accountant

Key takeaways

• Prioritise Xero-certified accountants who can set up automation features like bank feeds and recurring invoices, as their platform expertise will save you time and reduce errors compared to general accountants who need to learn the software.
• Interview at least three candidates using the same questions to compare their communication style, certification level, and experience with businesses similar to yours in size and industry.
• Negotiate fees upfront by getting written quotes and comparing different pricing structures (hourly, monthly retainer, or percentage of turnover) to find what works best as your business grows.
• Choose a proactive accountant who actively suggests ways to reduce your tax burden and improve cash flow, rather than someone who only handles basic compliance tasks like filing returns.

Top tips for choosing an accountant

Choosing the right accountant saves you time and money by putting one of the most important areas of your business in capable hands. Taking care now means fewer headaches later.

When evaluating accountants, focus on these key factors:

• Qualifications: professional certifications and Xero expertise
• Experience: familiarity with businesses like yours
• Software: whether they use Xero or can collaborate through it
• Location: local presence versus remote cloud-based support
• Fees: pricing structure and value for money
• Proactive advice: ability to help reduce taxes and improve cash flow

What is a Xero accountant?

A Xero accountant is an accounting professional trained and certified to use Xero's cloud-based software. They understand how to set up, manage, and get the most from Xero for small businesses.

Xero accountants differ from general accountants in a few key ways:

• Platform expertise: they know Xero's features inside out, from bank feeds to reporting
• Certification: many hold official Xero certifications that verify their skills
• Cloud-first approach: they work collaboratively through shared online access rather than exchanging files

You can find Xero accountants through the Xero advisor directory, which lists certified professionals by location, industry, and services offered.

Benefits of working with a Xero-certified accountant

Xero-certified accountants bring specific advantages that general accountants may not offer. Their training ensures you get the most from your accounting software.

Key benefits include:

• Real-time collaboration: you both access the same live data, so there's no waiting for file transfers
• Automation expertise: they can set up bank feeds, recurring invoices, and rules that save you hours each month
• Faster onboarding: they know how to migrate your data and configure Xero quickly
• App knowledge: they can recommend add-ons for payroll, inventory, expenses, and more
• Fewer errors: familiarity with Xero means less chance of misconfigured settings or missed features

Working with someone who already knows Xero means less time explaining the software and more time getting useful financial advice.

Choose a certified or chartered accountant

Certified and chartered accountants are professionals regulated by official bodies. They've completed degree-level study, workplace experience, and competence programmes. In New Zealand, they must follow regulations like the government-approved Code of Conduct for financial advice services. In New Zealand, look for Chartered Accountants (CAs) as a mark of quality.

Hiring a qualified accountant helps your business from day one. They bring deeper expertise to navigate complex requirements like the multi-tiered approach of the New Zealand Accounting Standards Framework and can support your business as it grows.

You'll likely need a certified or chartered accountant if you:

• apply for a business loan
• face an audit
• deal with complex tax situations
• plan for significant growth

For basic bookkeeping or tax preparation, a non-certified accountant may be enough. But if you expect your business to scale, start with a professional.

Look for an accountant with relevant expertise

Relevant expertise means experience with businesses similar to yours in size, revenue, and industry. An accountant who understands your sector will grasp your unique challenges faster.

When evaluating expertise, look for:

• Size match: experience with companies of similar revenue and employee count
• Industry knowledge: familiarity with your market sector
• Growth track record: clients who have scaled over time
• Cloud skills: comfort with Xero and other cloud-based tools

Ask for a client list or references. Find out how their clients have grown to gauge whether they can support your evolving needs.

Ask yourself if location matters

Location matters less than it used to. Cloud accounting software like Xero lets you and your accountant view the same real-time data from anywhere. This means you can prioritise expertise over geography.

Consider what works best for your business:

• Remote collaboration: works well if you're comfortable with email, video calls, and shared access through Xero
• Local presence: better if you prefer face-to-face meetings or need someone at business discussions

Whichever you choose, make sure your accountant understands the tax laws that apply to your business.

Interview several candidates before you decide

Interviewing several accountants helps you compare options and find the best fit. Each conversation sharpens your understanding of what you actually need.

Aim to speak with at least three candidates. Use the same questions for each so you can compare answers fairly. Pay attention to how they communicate: do they explain things clearly? Do they ask good questions about your business?

The interview process often gives you free advice too. Even if you don't hire someone, their insights can help clarify your financial priorities.

Questions to ask an accountant

Asking the right questions helps you assess whether an accountant can deliver the expertise you need. Use these prompts during your interviews.

Questions to cover:

• Experience: How many clients do you currently support?
• Setting up: How do you onboard new clients?
• Automating tasks: Can you help set up bank feeds, recurring invoices, and rules to reconcile accounts?
• Working together: How will you share access and communicate regularly?
• Responding: How quickly do you typically answer questions or handle urgent issues?

How they answer will reveal how well they know the platform and whether their working style fits your needs.

Decide how the accounting work will be divided

You typically divide the work like this between you and your accountant to save money and keep you informed. Since accountants often charge by the hour, handling simple tasks yourself means you only pay for their expertise where it counts.

A typical split looks like this:

• You handle: data entry, invoicing, expense tracking, receipt uploads
• Your accountant handles: bank reconciliation, tax returns, payroll, depreciation calculations, financial reporting

Cloud accounting software like Xero makes this easy. You enter the basics, and your accountant gets secure access to review, reconcile, and advise. You stay connected to your numbers while they focus on the complex stuff.

Get someone who's proactive about saving you money

A proactive accountant does more than file your returns. They actively look for ways to improve your financial position, such as advising when your business is approaching the NZ$60,000 turnover threshold where you must register for GST.

Before hiring, ask what they could suggest to reduce costs. Good questions include:

• Deducting costs: what operating costs can you offset against tax?
• Home office: can you claim phone, car, or rent expenses, and what are the risks?
• Structuring your business: is your business set up in the most tax-efficient way?
• Timing payments: are there better ways to manage income and expenses across tax years?

A skilled accountant knows the difference between legally avoiding tax and illegally evading it. You want someone who saves you money within the rules, not one who takes unnecessary risks.

Always negotiate fees

Accountant fees are negotiable. There's no standard pricing model, so get written quotes from each candidate and compare them carefully.

Common fee structures include:

• Hourly rate: you pay for time spent on your accounts
• Monthly retainer: a fixed fee for ongoing support
• Percentage of turnover: fees scale with your revenue
• Fixed project fees: one-off prices for specific tasks like tax returns

Consider how each structure works as your business grows. A percentage model might suit you now but become expensive later.

Don't hesitate to propose alternatives. You could ask for a sliding scale, a hybrid model, or capped hours. The worst they can say is no.

Do background checks

Background checks confirm that your prospective accountant is who they say they are. A genuine professional will happily provide references.

When checking references, keep it simple:

• Ask for two or three client contacts from businesses similar to yours
• Make a short phone call rather than sending a long questionnaire
• Focus on reliability: do they meet deadlines and respond promptly?
• Ask how they communicate: are they easy to reach and do they explain things clearly?

You can also verify they're credentialed through professional bodies and check the Xero advisor directory for certified partners.

Good accountants will help your company grow

The right accountant supports your business long-term. They manage the complex financial work, offer practical advice, and help your company grow. Choose wisely, and you'll save time and money for years to come.

Beyond the practical criteria, pick someone you feel comfortable working with long-term. Trust matters when sharing the private details of your business.

Ready to find an accountant? Search for experienced, Xero-certified accountants in the Xero advisor directory. Want to simplify how you work with your accountant? Get one month free.

FAQs on choosing an accountant

Common questions about finding and working with an accountant.

How much does an accountant cost?

Fees vary based on services, location, and experience. Always get written quotes from a few candidates to compare costs and find what works for your budget.

Can I switch to a Xero accountant if I'm already using different software?

Yes. A Xero accountant can help migrate your data from other platforms. The process typically involves exporting your existing records and importing them into Xero, then configuring settings to match your workflows.

What should I ask an accountant in the first meeting?

Ask about how they're certified, their experience with businesses like yours, how they automate tasks, and how they communicate. Ask how they onboard new clients and how quickly they typically respond to questions.