How To Choose An Accountant In The UK: A Practical Guide

Start With Your Needs And Budget

A good choice starts with clarity. List what you need this year and next. Typical services include annual accounts, tax returns, payroll, bookkeeping and occasional advice. Map these to fixed-fee accountancy packages so you can compare like-for-like.

If You’re Not Sure What You Need From An Accountant

Here are typical basic services for small businesses and individuals. Start with your situation, then match to services:

Limited company: year-end accounts, corporation tax return, confirmation statement, payroll if you pay anyone, VAT if you’re registered.
Sole trader or freelancer: Self Assessment tax return; bookkeeping if you have regular invoices/expenses; VAT if you expect to cross the VAT registration threshold.
Landlord: Self Assessment, rental accounts summary, capital gains help if you sell.
Employing staff: payroll, pensions (auto-enrolment) and basic HR data checks.
High volume of sales/purchases: bookkeeping with bank feeds and receipt capture.
Contractors/consultants: check status and contracts; ask about IR35 basics.
Growing or changing: budgeting, management accounts, VAT scheme review, company vs sole trader options.

Quick self-assessment:

Do you sell regularly or employ anyone?
Are you VAT-registered or likely to be soon?
Will you need help keeping records tidy each month?
Any property, capital gains or overseas elements?
Do you want proactive tax planning, not just year-end filing?

If you’re unsure, a short scoping call usually settles it. Share what you do, turnover bands, staff count, and any deadlines, and an accountant can map this to a clear, fixed-fee plan. We’re happy to do this in a free 15-minute chat and send a plain-English scope you can compare like-for-like.

Fixed-fee packages vs pay-as-you-go

Fixed-fee accounting services give you a clear monthly or annual price. They work well when you want predictable costs and ongoing support.

Pay-as-you-go suits one-off or irregular tasks. It can look cheaper at first but costs vary with the time spent.

Whichever you choose, ask what is included, what counts as out of scope and how extra work is agreed before it starts.

What “year-round support” should include

Expect timely replies to routine questions, reminders for deadlines and proactive nudges when rules change.

Qualifications, Regulation And Insurance

Chartered status vs unregulated providers

Anyone can call themselves an "accountant" but only those who have gone through rigorous exams, documented experience, a strict code of ethics, ongoing training and external quality reviews can call themselves a "chartered accountant".

Non-chartered advisers can be competent for straightforward tasks, but chartered accountants typically bring deeper technical knowledge, stronger processes and greater credibility with lenders, investors and HMRC.

That extra assurance is especially valuable if your affairs are growing, involve VAT or payroll, property or R&D, or you want proactive year-round planning.

AML supervision and client due diligence

Accountancy firms must be supervised for anti-money laundering and carry out client identity checks. Ask who supervises them and what their process is for verifying ID and address. HMRC sets out an adviser’s money laundering responsibilities.

If a firm is not under AML supervision, treat that as a major red flag. It raises questions about legality and basic professional standards.

Professional indemnity insurance and engagement letters

Professional indemnity insurance protects you if something goes wrong. If an error leads to loss, the policy helps cover legal costs and compensation. Ask for confirmation that cover is in place and the level of indemnity, so you understand the protection behind the advice you receive.

A clear engagement letter is equally important. It sets the scope of work, deadlines, responsibilities on both sides, fees and what counts as extra, service levels, how HMRC correspondence will be handled and how changes are approved. This clarity prevents surprises, makes it easier to resolve issues quickly and gives you a document to rely on if expectations drift.

How Contactable Are They?

Response-time standards

Instead of a headline response-time promise, look for signs of practical availability. During your enquiry, note how quickly they acknowledge messages and whether replies actually move things forward. Ask how they handle urgent queries and how you will be kept informed. At SCCS, we prioritise urgent issues and keep clients updated until they are resolved.

Direct lines and escalation

Ask who your named contact will be and what level of experience they have. Clarify whether you will deal with that person directly or be routed through juniors or a generic inbox. A good firm will give you a dedicated, experienced accountant as your main point of contact. That is our model at SCCS.

Communication Channels That Fit You

Confirm which channels the firm supports and how they monitor them. Phone and email are standard; many clients also prefer WhatsApp for quick updates. Make sure the firm is comfortable using your preferred mix and that messages do not fall between systems.

Meetings When You Need Them

Some businesses like regular check-ins; others want ad-hoc conversations. Ask whether meetings are scheduled by default or arranged when needed, and whether video calls are available. We do not force a meeting calendar; we set up calls when clients want to talk.

Who Will Actually Do Your Work?

Team structure

Ask who your day-to-day contact will be, their experience and how much time they will spend on your file. Clarify whether you will speak directly to that person or be routed through juniors or a generic inbox. At SCCS you deal with a dedicated, experienced accountant as your main point of contact, not trainees or lower-level staff.

Risks of ultra-low fees and huge client loads

Very low quotes can signal stretched teams or heavy reliance on hand-offs to lower-level staff. In some cases, routine processing is shipped overseas to reduce costs. Outsourcing can work when controls are robust, but if the UK team is distant from the detail it can be harder to spot issues or give timely advice. Ask where work is done, how it is reviewed and who actually understands your business.

Questions to ask

Who prepares my work?
What are typical turnaround times?
How is continuity handled during holidays?
If capacity is tight, how do you prioritise work close to deadlines?

Transparency checklist

Request the details of:

Your named contact and their role.
Where processing takes place.
What you will see and approve, and when.
How you can escalate if something stalls.

Software, Records, And Making Tax Digital (MTD)

Supported software and migrations

Ask which bookkeeping platforms the firm supports and whether migration and clean-up are included.

You want an adviser who knows your system inside out. We are Xero-first because we find it the most intuitive and robust for small businesses, but we also work across QuickBooks, Sage, QuickFile, FreeAgent and others.

If you are switching, check who will handle the data move, opening balances and chart of accounts tidy-up.

Feeds, capture and monthly close

Confirm that secure bank feeds will be set up, that you will use receipt capture for invoices and expenses, and that there is a simple period-end checklist so numbers stay current.

Regular reconciliations and strong automation make VAT returns, payroll and year-end far smoother and reduce last-minute pressure.

Data security and GDPR basics

Ask about UK data residency options, backups, user access controls and how leavers’ access is removed. The Data Protection Act 2018 underpins UK GDPR duties on handling personal data, so your accountant should explain how client data is stored, shared and deleted.

Proactive Advice You Should Expect

You should hear practical ideas relevant to your profile. Examples include salary and dividends for owner-managers, pension basics, VAT scheme selection, company vs sole trader considerations, IR35 basics for contractors, and property tax touchpoints for landlords.

How To Compare Proposals Like-For-Like

Scope

Ask for a clear breakdown of what is included and excluded. Look for the boundaries on bookkeeping, whether Companies House filings are covered, who deals with HMRC letters and how many queries are included. At SCCS, we spell out scope so you can compare us fairly with other fixed-fee accounting services.

Turnaround and deadline management

Agree when drafts will arrive and how filing dates will be monitored. Good firms share a simple timetable, set out your responsibilities, and build in time for unexpected events. At SCCS, we use reminders and a defined workflow so year end is calm, not rushed.

Pricing model and scope changes

Favour transparent fixed-fee accountancy packages with rules for extras and change requests. Avoid vague “from” pricing where costs only become clear after work starts. Ask how additional tasks are quoted and approved before the firm proceeds.

Red Flags And How To Spot Them

Be wary of vague proposals, no engagement letter, no named contact, or promises of ‘guaranteed loopholes’. Slow responses during the sales process often signal later service issues. Very low fees can mean hand-offs to juniors, heavy client loads, or work sent overseas with limited oversight. None of these is automatically bad, but make sure you know exactly what you’re paying for, who will do the work, and the level of support you’ll receive.

What This Means For You

Choosing an accountant is about more than the cheapest quote. Put weight on who will handle your file, how contactable they are, how clear the scope is, how deadlines are managed, and how much ongoing support you’ll receive. Then compare fees for the same level of service and pick the firm that will support you all year.

Quick Checklist

List services you need this year.
Confirm qualifications, AML supervision & insurance.
Test response times before you sign.
Ask who prepares.
Align software and monthly routines.
Compare fixed-fee accounting services by scope.

FAQs on Choosing an Accountant UK

Do I need a chartered accountant or will any accountant do?

Anyone can call themselves an "accountant" but only those who have gone through rigorous exams, documented experience, a strict code of ethics, ongoing training and external quality reviews can call themselves a "chartered accountant".

Non-chartered advisers can be competent for straightforward tasks, but chartered accountants typically bring deeper technical knowledge, stronger processes and greater credibility with lenders, investors and HMRC.

That extra assurance is especially valuable if your affairs are growing, involve VAT or payroll, property or R&D, or you want proactive year-round planning.

Whichever firm you choose, use the guidance in this article to make sure you receive the quality of service you require.

How much should an accountant cost for a small limited company?

Prices vary by complexity and service level. Compare accounting pricing packages by scope, turnaround and who does the work, not only the headline fee. A good accountant can explain what is included and why the fee is appropriate for your situation.

What should be included in a fixed-fee package?

Expect the core filings, routine queries, deadline reminders and a clear process for HMRC correspondence. Clarify the boundaries on bookkeeping, the number of revisions included and any extras before you sign. Ask how changes of scope are quoted and approved.

Can accountants represent me with HMRC?

Yes. With your authorisation, your accountant can liaise with HMRC, handle letters and manage submissions. You should still see and approve returns before they are filed.

Is it safe if my accounting work is outsourced overseas?

It can be, provided controls are strong. Ask where work is done, who reviews it, how confidentiality is protected and where your data is stored. You want clear oversight from the UK team and a named person who understands your business.

What software should I use with my accountant?

Choose software the firm knows well and that fits Making Tax Digital plans. Xero, QuickBooks, Sage, FreeAgent and QuickFile are common choices. Agree on bank feeds, receipt capture and whether you will run a monthly, quarterly or annual close so records stay accurate.

How do I switch accountants smoothly?

Give notice to your current adviser, settle any outstanding fees and request a full handover.

Your new accountant will send a professional clearance request and agree a data migration plan. They will ask for a neat package that includes recent trial balances, year-end journals, VAT and payroll records, fixed asset registers, copies of submissions and access to your bookkeeping software so you don't have to worry about any of that.

Share filing deadlines and any HMRC letters with your new accountant so nothing is missed.

If you want an approachable team that is easy to reach, whether you are in Stourbridge, the wider West Midlands or anywhere in the UK, we are ready to help. Book a free 15-minute discovery call and meet the qualified person who will look after you.

Disclaimer

This article is provided for general informational purposes only and does not constitute tax, legal, accounting, or financial advice. The information is based on UK law and HMRC guidance as at the date of publication, but rules and interpretations may change. We do not accept any liability for actions taken, or not taken, based on this content. Always seek tailored advice from SCCS Accountants before making financial or business decisions.