How to choose an accountant: what to check in the UK

Published Monday 16 March 2026

Table of contents

• Why hire an accountant
• Choose a certified or chartered accountant
• Look for an accountant with relevant expertise
• How to find accountant candidates
• Find out what software the accountant uses
• Decide how the accounting work will be divided
• Interview several candidates before you decide
• Understanding fees and pricing
• Do background checks
• Find your perfect accounting partner
• FAQs on choosing an accountant

Key takeaways

• Choose a chartered or certified accountant registered with recognised UK bodies like ICAEW or ACCA to ensure professional qualifications, credibility with lenders, and protection through regulated ethical standards.
• Look for an accountant with relevant experience in your industry and business size who actively suggests tax-saving strategies rather than just processing returns.
• Ensure software compatibility by finding an accountant who uses or adapts to your cloud accounting system to enable real-time data sharing and avoid security risks from file transfers.
• Interview at least three candidates and check references from current clients to compare fee structures, service approaches, and communication styles before making your decision.

Why hire an accountant

A good accountant saves you time and money while helping your business grow. They handle complex tax obligations, spot financial risks before they become problems, and free you to focus on running your business.

Small business owners often try to manage finances alone, but this approach has limits:

• Tax compliance: UK tax rules change frequently, and mistakes can be costly
• Time savings: Bookkeeping and financial admin can consume hours each week
• Strategic insight: Accountants spot opportunities for savings and growth you might miss
• Credibility: Lenders and investors expect professionally prepared accounts

The right accountant becomes a trusted advisor, not just a number-cruncher. This reflects a shift in the profession. A majority of finance professionals expect flexible career paths to replace traditional roles by 2035. Combined with cloud accounting software, they give you real-time visibility into your business finances.

What can an accountant do for you?

Accountants provide far more than tax returns. A skilled accountant offers services that directly impact your bottom line and business growth.

Core services to expect:

• Tax preparation and planning: File accurate returns and minimise your tax bill legally
• Compliance: Stay on top of HMRC requirements, VAT, and payroll obligations
• Bookkeeping support: Maintain accurate records or review your work
• Financial reporting: Produce profit and loss statements, balance sheets, and cash flow reports
• Strategic advice: Plan for growth, manage cash flow, and make informed decisions
• Software setup: Configure accounting tools and train you to use them effectively

For a deeper look at accountant services, see the guide on what an accountant does.

Choose a certified or chartered accountant

Chartered and certified accountants hold professional qualifications that guarantee training, competence, and ethical standards. Choosing a qualified accountant protects your business and ensures credibility with lenders and HMRC.

Chartered accountants complete rigorous training: degree-level study, workplace experience, and professional competence exams. They're regulated by professional bodies that enforce standards and handle complaints.

Why qualifications matter:

• Loan applications: Lenders expect accounts prepared by qualified professionals
• HMRC audits: Qualified accountants understand compliance requirements
• Complex tax situations: Higher qualifications mean deeper expertise
• Professional accountability: Regulated accountants must follow ethical codes

You can use unqualified accountants for basic bookkeeping or tax preparation. But for growing businesses, qualified support pays off from the start.

UK professional accounting bodies

Look for accountants registered with these recognised UK bodies:

• ICAEW: Institute of Chartered Accountants in England and Wales
• ACCA: Association of Chartered Certified Accountants
• CIMA: Chartered Institute of Management Accountants
• AAT: Association of Accounting Technicians
• ICAS: Institute of Chartered Accountants of Scotland

Each body maintains a searchable directory of members. You can also find Xero-certified advisors in the advisor directory.

Look for an accountant with relevant expertise

The best accountant for your business understands companies like yours. Look for experience that matches your size, industry, and growth plans.

Key expertise to look for:

• Business size match: Experience with similar revenue levels and employee counts
• Industry knowledge: Familiarity with your sector's specific tax rules and challenges
• Growth track record: Clients who've scaled successfully with their support
• Software skills: Comfort with cloud accounting tools and digital workflows

Ask potential accountants about their client base. Request examples of businesses similar to yours. Find out how long they've worked with their clients and how those businesses have grown.

An accountant who's helped others scale can guide your growth too.

Ask yourself if location matters

Location matters less than it used to. Cloud accounting software lets you and your accountant view the same real-time data from anywhere. Many small businesses now work with accountants they've never met in person.

Remote collaboration works well if you're comfortable with:

• Video calls for meetings and reviews
• Email and messaging for quick questions
• Shared access to cloud accounting software
• Digital document signing

However, some business owners prefer face-to-face contact. If you want an accountant who attends meetings with you or visits your premises, focus your search locally.

Your accountant must understand UK tax law and HMRC requirements, regardless of where they're based.

How to find accountant candidates

Building a shortlist of qualified accountants takes a systematic approach. Use multiple sources to find candidates worth interviewing.

1. Check professional body directories: ICAEW, ACCA, and other bodies maintain searchable member lists filtered by location and specialisation.
2. Ask for referrals: Talk to business owner friends, family, and colleagues about their accountants. Ask what they like and what they'd change.
3. Contact business associations: Local chambers of commerce and industry groups often recommend trusted accountants.
4. Search professional networks: LinkedIn lets you check an accountant's background, connections, and recommendations from clients.
5. Explore the Xero advisor directory: Find accountants experienced with Xero accounting software who understand cloud-based workflows.

When evaluating candidates online, look for:

• Professional connections: A strong network suggests credibility
• Client recommendations: Read what others say about working with them
• Relevant experience: Check their background matches your needs
• Qualifications: Verify their professional memberships

Get someone who's proactive about saving you money

A great accountant actively looks for ways to reduce your tax bill legally. They don't just process your returns; they spot opportunities you'd miss on your own.

Ask potential accountants what they'd suggest to save you money. Good questions include:

• What operating costs can I offset against tax?
• Are there allowances I'm not currently claiming?
• How can I structure my business more tax-efficiently?
• What tax-saving opportunities do you see for businesses like mine?

Tax avoidance vs tax evasion: Tax avoidance uses legal methods to minimise what you owe. Tax evasion breaks the law. A good accountant knows the difference and keeps you on the right side of it.

Be cautious of accountants who promise unrealistic savings or suggest aggressive schemes. If something goes wrong, you're responsible for penalties and interest, not them.

Find out what software the accountant uses

Software compatibility affects how smoothly you'll work together. When you and your accountant use the same cloud-based system, you both see real-time data without manual file transfers or security risks.

Problems arise when systems don't match:

• Data export headaches: Converting files between formats wastes time and creates errors.
• Security risks: Emailing financial files exposes sensitive data.
• Version confusion: Working from different data sets leads to mistakes.

The solution is shared cloud accounting software. You and your accountant access the same live data, with changes visible instantly to both. Built-in encryption keeps your information secure.

Ask potential accountants which software they use and whether they'll work with yours. Good accountants adapt to client systems, especially user-friendly platforms like Xero.

Decide how the accounting work will be divided

Dividing tasks strategically saves money and keeps you connected to your finances. You don't have to hand everything to your accountant, and doing so may not be the best use of their expertise.

Tasks you can handle:

• Entering invoices and receipts
• Basic bookkeeping and categorisation
• Chasing late payments
• Running standard reports

Tasks for your accountant:

• Bank reconciliation
• Tax return preparation
• Payroll processing
• Year-end accounts
• Complex tax planning

Cloud accounting software makes this division easy. You enter day-to-day data, and your accountant accesses the same system to handle complex work. No file transfers, no version confusion.

Discuss the split during your initial conversations. A good accountant will recommend an arrangement that balances cost with the support you need.

Interview several candidates before you decide

Interview at least three accountants before making your choice. Comparing candidates helps you understand what's available and clarifies what you actually need.

Each conversation teaches you something. You'll learn about different fee structures, service approaches, and specialisations. You'll also get a feel for who you'd enjoy working with, since this relationship may last for years.

Treat initial consultations as two-way interviews. You're assessing them, but they're also evaluating whether you're a good fit for their practice.

Questions to ask when interviewing an accountant

1. What experience do you have with businesses like mine?
2. Which accounting software do you use or recommend?
3. What's your fee structure and what's included?
4. What are your typical response times?
5. Can you provide references from similar clients?
6. How do you approach tax planning and savings?
7. How often will we meet to review my accounts?
8. How will you help my business as it grows?

Listen for specific answers, not vague promises. The best accountants ask you questions too, because they want to understand your business before committing.

Understanding fees and pricing

Accountant fees vary widely depending on your business complexity, location, and the services you need. Understanding fee structures helps you compare quotes fairly and negotiate effectively.

Common fee structures:

• Hourly rates: £50–£200 or more per hour, depending on qualifications and location
• Fixed monthly retainer: £100–£500 or more for ongoing support and defined services
• Annual fixed fee: £500–£2,500 or more for small businesses; higher for complex accounts
• Percentage of turnover: Typically 0.5–1% of annual revenue

What affects the cost:

• Business complexity and transaction volume
• Number of employees and payroll requirements
• VAT registration status
• Industry-specific compliance needs
• Level of support required

Negotiation tips:

• Get written quotes from at least three accountants
• Ask exactly what's included and what costs extra
• Consider how fees scale as your business grows
• Request a fee review clause for the first year

Don't choose solely on price. A slightly more expensive accountant who saves you tax or prevents costly mistakes delivers better value.

Service levels and communication expectations

Clear communication expectations prevent frustration and ensure you get support when you need it. Discuss these details before signing up.

Questions to clarify upfront:

• Response times: How quickly will they reply to emails or calls? Within 24 hours is reasonable for routine queries.
• Meeting frequency: How often will you review your accounts together? Quarterly is typical for small businesses.
• Availability: Can you reach them during tax season or year-end crunch times?
• Communication channels: Do they prefer email, phone, video calls, or messaging through your accounting software?
• Point of contact: Will you work with the accountant directly or with junior staff?

Tax deadlines create pressure for everyone. Ask how they manage workload during January, when the self-assessment deadline falls, and other peak times. Good accountants plan ahead and communicate proactively about timelines.

Cloud accounting software helps here too. When you both access the same system, your accountant can review your data without scheduling a meeting, and you can see their work in real time.

Do background checks

Speaking with current clients reveals what working with an accountant is actually like. Any reputable accountant will provide references when asked.

What to ask references:

• How responsive is the accountant to questions?
• Do they meet deadlines consistently?
• Have they helped you save money or avoid problems?
• How well do they explain complex issues?
• Would you recommend them to a similar business?

Keep calls brief, around ten minutes. A short conversation tells you more than a written questionnaire.

Other checks to make:

• Verify professional body membership through their directory
• Check for any disciplinary actions or complaints
• Look for online reviews, but weigh them against direct references
• Confirm their professional indemnity insurance is current

Learn to use and trust your intuition

Personal fit matters as much as qualifications. You'll share sensitive financial details with your accountant and work with them for years. If something feels off, pay attention.

Intuition isn't magic. It's your brain processing signals you haven't consciously noticed: tone of voice, body language, how they respond to questions. These impressions are worth considering alongside practical factors like fees and experience.

Ask yourself:

• Do they listen carefully and answer clearly?
• Do they seem genuinely interested in your business?
• Can you imagine having difficult conversations with them?
• Do they explain things in ways you understand?

If your gut says no, trust it. Finding the right accountant is worth the extra effort.

Find your perfect accounting partner

Choosing the right accountant is one of the most important decisions you'll make for your business. The right person saves you money, keeps you compliant, and helps you grow. The wrong choice costs time and creates stress.

Take your time with this decision. Interview multiple candidates, check references, and trust your instincts about who you can work with long-term.

When you find the right accountant, pair them with the right tools. Cloud accounting software gives you both real-time visibility into your finances, making collaboration seamless.

Take control of your business finances. Get one month free when you sign up for Xero, then connect with experienced accountants through the advisor directory.

FAQs on choosing an accountant

Common questions about finding and hiring the right accountant for your business.

How much does an accountant cost in the UK?

UK accountants typically charge £500–£2,500 or more annually for small business accounts. Sole traders might pay £300–£900 for basic tax return services. Fees vary by structure: hourly rates, fixed monthly retainers, or a percentage of turnover.

How do you know you have a good accountant?

A good accountant responds promptly, proactively suggests tax-saving strategies, explains your numbers clearly, and adapts as your business grows. They should simplify complexity and make you feel confident about your financial decisions.

What's the difference between a bookkeeper and an accountant?

Bookkeepers handle day-to-day transaction recording, invoicing, and basic reconciliation. Accountants provide higher-level services like tax planning, financial analysis, strategic advice, and regulatory compliance. Many small businesses use both.

Can I switch accountants if I'm not happy?

Yes, you can switch accountants at any time, though year-end or after tax filing is often easiest. Give appropriate notice, request your financial records, and inform HMRC of the change. A professional accountant will facilitate a smooth handover.

Do I need an accountant if I use accounting software like Xero?

Accounting software handles data entry, invoicing, and reporting, but accountants provide expertise software can't: tax strategy, compliance knowledge, and strategic advice. Combining what Xero automates with an accountant's expertise gives you the best financial management.