How to Choose the Right Accountant for Your Small Business

At Towerstone Accountants we provide specialist small business accountancy services for owners, directors, and growing businesses across the UK. We created this webpage for small business owners who want clear guidance on managing finances, meeting tax obligations, and making informed decisions without jargon. Our aim is to help you stay compliant, improve cash flow, and build a more resilient business.

Choosing the right accountant is one of the most important decisions you will make as a small business owner. It is also one of the most underestimated. Many people treat it as a box ticking exercise, something that just needs to be sorted so tax returns get filed and HMRC is kept happy. In my experience, that mindset often leads to frustration, missed opportunities and unnecessary stress later on.

A good accountant does far more than deal with compliance. They help you understand your numbers, plan ahead, avoid mistakes and make better decisions. A poor fit accountant, even if technically competent, can leave you feeling confused, reactive and unsure where you stand financially. The difference between the two can be significant, both financially and emotionally.

This article is designed to help you choose the right accountant for your small business, whether you are just starting out or have been trading for years. I will explain what to look for, what questions to ask, common mistakes to avoid and how to judge whether an accountant is genuinely right for you rather than simply available. Everything here is written from a UK perspective and grounded in real world experience of working with small business owners.

Why choosing the right accountant matters more than you think

Many small business owners only speak to their accountant once or twice a year. Often it is rushed, focused on deadlines and centred around historical figures. That is usually a sign that the relationship is transactional rather than supportive.

The right accountant becomes part of your decision making process. They help you think ahead, flag issues early and explain things in a way that makes sense. Over time, that relationship can save you money, time and stress.

The wrong accountant may technically do the job but leave you unsure about your tax position, unclear on cash flow and reactive instead of proactive. This often only becomes obvious when something goes wrong.

Understanding what you actually need from an accountant

Before you start looking for an accountant, it is important to understand what you need from them. Not every business needs the same level of support and not every accountant offers the same type of service.

Some key questions to ask yourself include:

• Do I want basic compliance only or ongoing advice

• Do I need help with planning, forecasting or growth

• Am I a sole trader, limited company or planning to change structure

• Do I want regular contact or annual check ins

• How confident am I with my own finances

Being honest about these points will help narrow your search and avoid choosing someone who is not a good fit.

The difference between compliance and advisory accountants

One of the most important distinctions to understand is the difference between compliance focused accountants and advisory focused accountants.

Compliance accountants focus primarily on meeting deadlines and filing requirements. They prepare accounts, submit tax returns and ensure forms are completed correctly. This work is essential, but it is largely backward looking.

Advisory accountants go further. They help interpret the numbers, explain what they mean and use them to guide future decisions. They may help with tax planning, business structure, cash flow management and long term goals.

Many accountants offer both, but the balance matters. If you want guidance and support, you need someone who actively offers advisory input rather than only reacting when asked.

Qualifications and professional standards

In the UK, accountants can hold a range of qualifications. While not all good accountants are chartered, qualifications do matter.

Common recognised qualifications include:

• ACA or FCA

• ACCA or FCCA

• CIMA

These bodies require ongoing professional development and adherence to ethical standards. This provides reassurance around competence and accountability.

You should also check that the accountant is regulated and holds appropriate professional indemnity insurance.

Experience with small businesses

An accountant who works primarily with large corporations may not be the right fit for a small business. Small businesses face different challenges, often require more hands on support and benefit from practical advice rather than theory.

Look for an accountant who regularly works with businesses of your size and structure. They are more likely to understand common issues, typical cash flow pressures and practical solutions.

Industry knowledge versus general expertise

Some accountants specialise in particular industries. This can be helpful, but it is not always essential.

Industry knowledge can add value where there are specific regulations or practices, such as construction, property or professional services. However, a good generalist accountant with strong small business experience can often provide excellent support across many sectors.

What matters most is their ability to understand how your business operates and apply that understanding to your finances.

Communication style and accessibility

One of the most common complaints I hear from business owners is that their accountant is hard to reach or difficult to understand.

Clear communication is critical. Your accountant should be able to explain complex topics in plain English and respond within a reasonable timeframe.

When assessing this, pay attention to:

• How quickly they respond to initial enquiries

• Whether they explain things clearly

• Whether they listen to your concerns

• Whether you feel comfortable asking questions

If communication feels strained at the start, it is unlikely to improve later.

How often you will hear from your accountant

Some accountants operate on a once a year model. Others provide ongoing contact and regular check ins.

Neither approach is inherently right or wrong, but it needs to match your expectations. If you want support throughout the year, make sure that is included and clearly defined.

Ask how often they typically speak to clients and whether proactive contact is part of the service.

Understanding fees and pricing structures

Fees are an important consideration, but they should not be the only one.

Accountants may charge:

• Fixed monthly fees

• Annual fees

• Hourly rates

• Fees based on services used

Fixed fees are often preferable for small businesses because they provide certainty and encourage contact. Hourly rates can discourage questions and lead to unexpected bills.

Make sure you understand exactly what is included in the fee and what is not. Ask whether advice calls are included or charged separately.

Value versus cost

The cheapest accountant is rarely the best value. A slightly higher fee can often be justified if it comes with better advice, clearer communication and fewer problems.

A good accountant should help you save money through planning and avoid costly mistakes. When viewed that way, the fee is often an investment rather than a cost.

Technology and systems

Modern accounting relies heavily on software. While you do not need an accountant who uses every tool available, they should be comfortable with current systems.

Ask what software they use and whether they support cloud accounting platforms such as Xero or QuickBooks. This can make collaboration easier and improve visibility.

However, technology should support good advice, not replace it. Software alone does not equal good accounting.

Support with growth and change

If you plan to grow, take on staff, change structure or expand services, your accountant should be able to support those changes.

Ask about their experience with:

• Hiring staff and payroll

• VAT registration and planning

• Moving from sole trader to limited company

• Business planning and forecasting

An accountant who can grow with your business is far more valuable than one who only handles basic compliance.

Asking the right questions before you decide

When speaking to a potential accountant, consider asking questions such as:

• What type of businesses do you typically work with

• How do you support clients beyond filing returns

• How often will we speak

• What is included in your fee

• How do you help clients plan ahead

Pay attention not just to the answers but to how they are delivered. Confidence clarity and openness are good signs.

Red flags to watch out for

There are some warning signs that suggest an accountant may not be the right fit.

These include:

• Being vague about fees or services

• Dismissing questions or concerns

• Over promising results

• Poor communication at the outset

• Lack of interest in understanding your business

Trust your instincts. If something feels off early on, it often is.

Local accountant versus online accountant

Many small businesses debate whether to use a local accountant or an online firm. Both can work well depending on your preferences.

Local accountants may offer face to face meetings and local knowledge. Online accountants may offer lower costs and streamlined systems.

What matters most is quality of service, not location. With modern technology, many excellent accountants work entirely remotely.

Changing accountants if it is not working

If you already have an accountant and the relationship is not working, it is usually possible to change.

A professional accountant will cooperate with a handover and provide information when requested. Fear of switching should not keep you in an unsatisfactory relationship.

Choosing the right accountant is about fit, not loyalty for its own sake.

Building a long term relationship

The best accountant relationships develop over time. As your accountant gets to know you and your business, the advice becomes more tailored and effective.

This only happens when there is trust, communication and mutual respect. Choosing carefully at the start makes this far more likely.

Final thoughts

Choosing the right accountant for your small business is not about finding the cheapest option or the biggest firm. It is about finding someone who understands your business, communicates clearly and supports your goals.

A good accountant helps you feel informed rather than overwhelmed, prepared rather than reactive and confident rather than uncertain.

In my experience, business owners who invest time in choosing the right accountant early on make better decisions, experience less stress and build more resilient businesses over the long term.

Take your time, ask questions and choose someone who feels like a partner rather than just a service provider. That decision can make a far bigger difference than many people realise.

You may also find our guidance on Can I switch accountants easily if I am unhappy and Do I need an accountant for my small business useful when exploring related small business questions. For a broader range of practical advice, you can visit our small business guidance hub.