Finance

5 Things to Check When Hiring an Accountant for Your Small Business

Choosing the right accountant is critical for any small business. Here are the five key questions to ask before signing.

Published 1 August 2025  ·  5 min read

1. Are They ACCA or ICAEW Qualified?

Look for accountants who are members of a recognised body: ACCA, ICAEW, CIMA or AAT. Membership means they are regulated and insured.

2. Do They Know Your Industry?

An accountant who specialises in your sector — construction, healthcare, retail — will understand your specific deductions, VAT rules and reporting obligations.

3. What Software Do They Use?

MTD (Making Tax Digital) compliance requires digital accounting. Ensure your accountant uses HMRC-recognised software such as QuickBooks, Xero or FreeAgent.

4. What Is Their Response Time?

At peak times (January self-assessment deadline, quarterly VAT returns), your accountant needs to be responsive. Ask about typical turnaround times.

5. How Are They Paid?

Monthly retainer vs. one-off fees — both can work. Avoid any accountant who charges based on your refund amount, as this is a red flag for aggressive tax advice.

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