Finding the right accountant can save your business thousands in tax every year – but choosing the wrong one can cost you even more. This guide covers exactly what to look for, what questions to ask, and how to find a qualified UK accountant that suits your business in 2025/26.
Note : This article has been updated and republished on 05-April-2026 to include the latest information about What to look for when hiring an accountant.
No matter the size of your business, a good accountant will be able to provide sound business advice about growth and development, as well as information on how to manage your finances efficiently.
Therefore it is wise to seek an accountant with experience of working within your business sector; someone you know you could approach for advice, who would be able to guide you in growing your business, and with whom you can discuss things openly.
Key Takeaways
Right Match Matters: Choose an accountant with experience in your specific business sector – not just any accountant.
Chartered vs Non-Chartered: Chartered accountants are regulated, insured, and qualified – worth the extra cost for growing businesses.
MTD Ready: From April 2026, MTD ITSA becomes mandatory – your accountant must be fully prepared for digital tax reporting.
Trust First: Your accountant will know everything about your finances – only work with someone you trust completely.
Fixed Fee Packages: Look for transparent, fixed monthly fees that include accounts, Corporation Tax, VAT, and payroll.
Cloud Software: Ensure your accountant uses up-to-date cloud tools like Xero, FreeAgent, or QuickBooks with Dext.
Value Over Cost: Accountancy fees are tax-deductible – a good accountant saves more than they cost.
5 top things to consider when choosing your accountant
1. Trust and accountability
Over time, your accountant will learn just about everything there is to know about your business finances, so it is important that you trust them implicitly. Likewise, they must be able to trust that you will be open and honest with them too.
Compliance must come at the top of any business’s list of priorities, and therefore it’s probably wise to choose an accountant that is registered with a professional accountancy body and/or is a certified chartered accountant with the qualifications, knowledge, and experience to be able to manage your accounts according to professional standards.
There are many capable small business accountants that are not chartered accountants and who operate alone, but there’s no doubt about it, various people overseeing the work and performance of your accountant can provide greater security.
Plus, larger firms tend to offer more services and have a wider pool of expertise.
2. Sector Experience and Business Understanding
The right accountant depends entirely on your business type, size, and goals. You should be seeking out accounting firms that have fully qualified and well-trained accountants who are experts in managing virtually every type of business account across an array of clients from various business sectors, including yours.
Hiring an accountant that understands business is a good start – but working with an accountant who understands small businesses and your specific business sector is even better.
Therefore, it’s crucial that your prospective accountant offers you some dedicated time, whether remotely or in person, to find out about your business and what your future aims and aspirations are.
An accountant with experience in working with small businesses and who knows about business operations in general, will be of great benefit.
You want someone who will keep track of your finances and spot potential pitfalls within the financial structure of the business before these pitfalls become problems for the business.
3. Up-to-date knowledge
Ever-changing financial regulations can faze even the most experienced business owner – but they should never faze your accountant.
Your accountant’s job is to stay ahead of the latest legislation and tax law, and to plan in advance so your cash flow and tax targets are protected.
No one knows everything – but a good accountant will admit when they don’t have an answer and will find out quickly on your behalf.
4. Digital infrastructure
Technology has transformed how accountants deliver their services.
So an accountant that uses the most up-to-date software, which corresponds to the real-time data demands of modern business accounting, is essential if you want to grow and ensure your financial information and accounts are up to date.
5. Value for money
We’d say: don’t stint on your accountancy fees; remember that they are fully tax-deductible and it’s a false economy to try to cut costs in this vital area of your business infrastructure.
The fees charged by your accountant may well be less than the sums they save you, simply by minimising your tax liability and suggesting how to make your business run more efficiently.
But the fees you will pay your accountant will be determined by factors, including:
- Your annual turnover
- Whether you need other services like payroll or VAT
- How regularly you need to use their services
- The complexity of your business finances and accounts
- Whether you want your accountant to look after your personal and business finances
It is vital to choose an accountant based on the quality of the overall service, and to discuss which services need to be included so that you can agree what you will be paying on a regular basis.
As a general guide, small business accountancy fees in the UK typically range from £50–£150 per month for basic services – covering annual accounts, Corporation Tax return, and self assessment. Fees rise depending on your turnover, VAT registration, payroll requirements, and the complexity of your finances. Always confirm exactly what is included in any quoted fee before signing up.
Chartered vs non-Chartered accountants
| Non-Chartered Accountant | Chartered Accountant | |
|---|---|---|
| Qualifications | AAT or experience-based | Full professional exams (ACCA/ICAEW/CIMA/ICAS) |
| Professional Body | Optional | Mandatory |
| Indemnity Insurance | Not always required | Required |
| Cost | Lower fees | Higher fees |
| Best For | Basic bookkeeping, small businesses | Complex finances, growing businesses |
| Regulated By | FRC guidelines | Professional body (ACCA/ICAEW etc.) |
Regardless of your requirements, chartered accountants are more expensive than accountants.
The key difference between non-chartered and chartered accountants, is that a chartered accountant is typically more highly qualified and experienced, and will definitely be a member of a professional body.
The title “accountant” can be held by someone who doesn’t hold any specific qualifications. An accountant may have studied accountancy at foundation level through the Association of Accounting Technicians (AAT), or have gained their knowledge via a law degree or through years of professional experience.
All practising accountants are expected to follow professional ethical standards, though requirements vary depending on whether they hold membership of a professional body.
A chartered accountant must pass a series of exams and complete three to five years’ work experience to gain professional accreditation.
Once qualified, accountants can hold membership of different professional bodies depending on their qualification route – including the Association of Chartered Certified Accountants (ACCA), the Institute of Chartered Accountants in England and Wales (ICAEW), the Chartered Institute of Management Accountants (CIMA), or the Institute of Chartered Accountants of Scotland (ICAS). Each body has its own qualification pathway, ethical standards, and areas of specialism.
Chartered accountants who are accredited by one of these (or other professional bodies), must hold professional indemnity insurance, which protects both you and them if unintentional errors occur. They are also bound by their chosen professional body’s ethical codes and can have their membership terminated if they do not adhere to the guidelines.
Even though your business might be seeking straightforward bookkeeping and accounting services now, if you hope to grow your business in the future you may benefit from hiring a chartered accountant now.
A more experienced accountant may actually help your business grow more quickly, and you will only need to pay for basic accounting services while your business accounting needs are minimal.
But, the benefit you will have is that in order to have access to more complex or specialised services as you need them, will not require a change in accounting firm later down the line.
Should I look for a specialised accounting firm?
Most qualified accountants will be able to provide expert accounting services, but if you’re a small business, a sole trader, contractor or a freelancer, hiring an accountant working within a specialist accountancy firm is probably better.
For a start, a larger firm will have multiple accountants of whom one or more will probably have had experience in your market sector and in dealing with your type of business structure. This is highly advantageous, for example, in relation to advising you on “disguised employment” (IR35).
Specialist accountants normally offer various packages for a fixed monthly fee. These typically include preparation of your accounts, corporation tax return, payroll, VAT, statutory tasks and telephone support, and should include a cloud-based accounting solution.
MTD for Income Tax Self Assessment (MTD ITSA) is being rolled out in stages – from April 2026 for sole traders and landlords earning over £50,000, and from April 2027 for those earning over £30,000. Your accountant must be fully prepared for this transition – ask them directly about their MTD readiness before hiring.
The great thing about using online accounting software, is that you can submit your receipts, upload your bank statements and access real-time data as and when you need it.
MTD for VAT is already mandatory for all VAT-registered businesses – your accountant should already be handling this digitally.
Some firms have designed and built their own bookkeeping and accounting solutions, but many firms use cloud accounting software such as Xero, FreeAgent, or QuickBooks, combined with receipt capture tools like Dext.
What are your business financial goals and objectives?
Small businesses must have some liquidity to continue operating, at least long-term. What are your financial goals and objectives?
Your business goals and objectives and the financial strategy that goes with these should be part of your business plan. A business plan is essential to guide your business: it should be tight enough so that you know where you are headed as a business, but be flexible enough that it can be tweaked to respond to a change in the market or opportunities.
Your plan should be risk assessed so that you have reserves to help in lean times or when the unexpected happens.
Your goals for your business might involve achieving an attractive profit margin, or they could be aiming at something specific, like buying a particular piece of equipment or hiring more staff.
Whether financial goals are numerical or tangible, they should be specific enough so that the business can determine whether or not the goal has been achieved.
If you have not yet written your business plan, you should: should you seek an investor at any point or apply for a business loan you would definitely need one.
In this case, you could consider hiring an accountant that offers a business plan services, one that is able to guide you in how to write an expertly presented business plan or even write it for you should you choose.
Growth
Profitability and growth are surely the goals of most small businesses. Profitability means your business is earning more revenue than it spends on operating.
Business revenue includes income from sales/services, interest on investments or rental income on any property the business might own. Operating expenses include payroll, rent, materials, vehicle expense, advertising, utilities, interest payments, licenses, insurances, taxes, and so on.
Goals for growth of any small business should take account of stakeholders, such as owners or shareholders, and look to how the business can limit expenditure to achieve expansion or grow capital reserves.
An expert accountant can help your business make more profit by analysing its operating costs and looking for ways to cut expenditure. Likewise, the same accountant may be able to suggest ways to increase revenue.
One thing’s for certain: a qualified accountant with the experience and expertise will almost certainly save you money in taxes and definitely ensure that you are fully compliant.
Company formation
When considering setting up a limited company or a company limited by shares, guarantee or a partnership, you should hire an accountant or accounting firm offering limited company formation services.
When choosing an accountant for company formation, look for a firm that offers:
- Industry experience and in-depth knowledge, helping thousands of clients worldwide.
- Specialists in online limited company formation, but offering a wide range of other company formation services, like registered office address (ROA), company secretarial, articles of association, etc.
- Services that are suited to all kinds of company formation, including limited by shares, by guarantee and limited liability partnerships.
- Prompt and efficient company registration, online, and affordable business services with guaranteed banking in the UK and worldwide.
Why Choose DNS CloudCo?
DNS CloudCo offers a full range of accountancy services for small businesses, contractors, and limited companies – from company formation and VAT registration to day-to-day accounting and tax planning. Our fees are transparent with no hidden charges. Get in touch today.
Conclusion
The accountant or accounting firm you choose, whoever it may be, should offer complete peace of mind that every part of their system is secure to ensure that all your data is protected. Total compliance is the key to a successful, profit-making business, so don’t skimp on your accountant!
Hiring a professional accountant will benefit your business, but choosing the right accountant will transform it. Make sure that the accountant you hire is suitably qualified (depending on your business needs) and knows your industry or business sector.
Not sure where to start? Speak to one of our qualified accountants today – we will help you find the right solution for your business at a transparent, fixed monthly fee.
FAQs
Do I need a chartered accountant for a small business?
Not always – but chartered accountants offer higher qualifications, professional indemnity insurance, and are regulated by a professional body. For growing businesses, they are worth the extra cost.
How much does a small business accountant cost in the UK?
Basic packages typically start from £50–£100/month. Costs rise depending on turnover, VAT, payroll needs, and complexity.
What is the difference between ACCA and ICAEW?
Both are respected UK professional bodies. ACCA is globally focused; ICAEW is UK-centric and considered the gold standard for UK business accounting.
What questions should I ask an accountant before hiring?
Ask about their experience in your sector, fee structure, MTD readiness, communication style, and whether they use cloud accounting software.
Is it worth hiring an accountant for a limited company?
Yes – a good accountant will typically save more in tax than their fees cost, and ensures full HMRC compliance.
What is Making Tax Digital and does my accountant need to support it?
MTD is HMRC’s initiative to move tax records online. From April 2026, it becomes mandatory for most self-employed and landlords. Your accountant must be fully MTD compliant.
Divyanshi is a subject matter expert in the UK accounting space, creating clear and easy-to-read content for accountants and businesses. She covers topics such as VAT returns, Self-assessment tax, bookkeeping, business planning and Year-end accounts. By understanding the common challenges faced by accountants and business owners, she focuses on writing content that answers real questions and simplifies complex topics. Her approach keeps information clear, relevant and useful for everyday business needs.
