Do You Need an Accountant?
Most small business owners benefit significantly from having an accountant. Beyond filing your annual accounts and tax return, a good accountant provides tax planning advice, helps you understand your numbers, and can save you more than their fee. The question is not usually whether to use an accountant, but how to choose the right one.
Types of Accountant for Small Businesses
Sole practitioner: A single qualified accountant running their own practice. Often most affordable and personal, but limited capacity. Good for simple accounts and tax. Small practice (2-10 staff): The most common choice for SMEs. Broad enough to handle growth but personal enough to know your business. Mid-tier firm: Suited to larger SMEs, owner-managed businesses with complex structures, or those with international operations. Online accountancy services: Cloud-first firms (Crunch, Gorilla Accounting, TaxScouts) offer low-cost services with self-service portals. Good for simple businesses; limited for complex needs.
Qualifications to Look For
Always use a qualified accountant. Look for letters after their name indicating professional membership: ACA or FCA (ICAEW), ACCA or FCCA (ACCA), CIMA or FCMA (CIMA), or CA (ICAS in Scotland). Avoid unqualified bookkeepers offering accountancy services for company filings. Check their registration on the relevant professional body's public register.
Questions to Ask Before Hiring
What qualifications do you hold and are you registered with your professional body? Do you have other clients in my industry? What software do you use and is it MTD-compatible? How quickly do you respond to queries? What is included in your fee and what is charged extra? Who will actually handle my account day-to-day?
Typical Costs
Annual accounts and self-assessment tax return for a sole trader: 300-800 GBP. Annual accounts, corporation tax return, and director self-assessment for a simple limited company: 800-2,000 GBP. Monthly bookkeeping and management accounts for a growing SME: 300-800 GBP per month. VAT return preparation: 50-150 GBP per quarter.
FAQ
How do I find a good local accountant?
ICAEW, ACCA, and CIMA all have public directories of qualified member firms. Recommendations from other business owners in your network are also highly valuable. Avoid choosing solely on price — the cheapest accountant is rarely the best value.
Further Reading
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Learnsignal Education Team
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