What Questions Should I Ask an Accountant Before I Sign

Introduction

An accountant does much more than file your tax return. The right one becomes a trusted advisor who helps you manage cash flow, plan growth, and stay compliant with HMRC. But not all accountants are the same. Before you commit, it’s worth asking a few essential questions to ensure they are the right fit for your business.

By asking the right questions early, you can avoid misunderstandings about costs, communication, and responsibilities later. This article sets out the most important areas to cover before you appoint your accountant.

1. What qualifications and experience do you have

A good starting point is to confirm that your accountant is properly qualified and experienced. Ask whether they are a member of a recognised professional body such as ACCA, ICAEW, or AAT. These organisations require members to follow strict professional standards and maintain ongoing training.

Experience matters too. If you are self-employed or run a small company, it helps if your accountant specialises in your sector or business size. For example, a retail accountant will understand stock management and VAT, while a contractor accountant will know IR35 and payroll rules inside out.

Ask how long they have been in practice and what types of clients they work with. This will help you gauge whether their experience aligns with your needs.

2. What services do you provide

Accountants offer different levels of service. Some only handle compliance work such as tax returns and accounts, while others provide wider financial support including bookkeeping, payroll, forecasting, and business advice.

Before you sign, make sure you understand exactly what is included in the package. Ask questions like:

Will you manage my bookkeeping or will I need to do it myself?

Do you handle VAT returns and payroll?

Can you prepare and file my confirmation statement with Companies House?

Will you provide regular financial reports or meetings to review performance?

Clarifying this at the outset avoids confusion later about who is responsible for each task.

3. How do your fees work

Accountants charge in different ways. Some offer fixed monthly fees, while others bill hourly or per task. Before signing, ask for a clear explanation of their pricing structure.

Key points to confirm include:

What services are included in the quoted price

Whether there are extra charges for phone calls, meetings, or letters to HMRC

How they handle unexpected work such as HMRC enquiries or adjustments

A fixed-fee package often works best for small businesses because it spreads costs evenly throughout the year and prevents surprise bills. However, if your business is complex or seasonal, a flexible arrangement might suit better.

Always get a written quote or engagement letter before agreeing to anything.

4. Who will handle my work day to day

In many firms, the person you meet initially may not be the one managing your accounts. Larger practices often assign junior staff or bookkeepers to handle day-to-day work.

Ask who will actually prepare your accounts and who you should contact for questions. If multiple people are involved, find out how communication will work and whether you’ll have a main point of contact.

This helps set expectations and ensures you have a consistent relationship with someone who understands your business.

5. How often will we communicate

Regular communication is essential for keeping your finances in order. Ask how often you’ll speak to your accountant and whether they offer meetings, calls, or email updates.

Some accountants provide quarterly reviews, while others prefer an annual meeting. Decide what level of contact suits you best. If you want proactive advice or regular planning discussions, make this clear from the start.

It’s also worth asking how quickly they respond to queries and what their working hours are. This helps avoid frustration later when you need urgent advice.

6. Do you use cloud accounting software

Modern accounting relies heavily on cloud-based software such as Xero, QuickBooks, or FreeAgent. Ask which system your accountant uses and whether it integrates with your bank, invoicing tools, or payment platforms.

If you already use accounting software, check that your accountant is familiar with it. Consistency helps avoid duplication and keeps records accurate.

Also ask whether they include software subscriptions in their fees or if you’ll need to pay separately.

7. What are your deadlines and processes

Before you sign, understand how your accountant manages key deadlines for tax returns, VAT, and Companies House filings. Ask what they need from you and when, so you can stay on schedule and avoid penalties.

Good accountants will provide a clear timeline of what happens throughout the year, such as:

When they’ll request your bookkeeping records

How long they take to prepare accounts

When draft reports will be ready for review

How they handle submissions to HMRC and Companies House

This transparency helps you plan ahead and ensures nothing slips through the cracks.

8. How will you help my business grow

A great accountant should do more than keep you compliant. They should help you understand your numbers and make better decisions. Ask how they support growth and what kind of business advice they provide.

For example, do they offer forecasting, budgeting, or cash flow analysis? Can they advise on business structure, tax efficiency, or funding options? The right accountant will act as a partner in your business, not just a service provider.

9. What happens if I want to leave

Although you may hope for a long-term relationship, it is still worth asking about exit terms. Check how much notice is required to terminate the contract and whether there are any exit fees.

Ask how they handle handovers if you move to another accountant. A professional firm should provide your financial records and HMRC access codes promptly without delay.

10. Can I see testimonials or client reviews

Finally, ask to see testimonials or case studies from existing clients. This gives insight into the firm’s reliability, responsiveness, and service quality.

You can also check independent reviews online or ask to speak to another client in a similar business to yours. If the accountant is reluctant to share feedback, that may be a red flag.

Bonus question: Are you proactive or reactive

A proactive accountant spots issues before they become problems and provides advice throughout the year. A reactive one only speaks to you at tax return time. Ask for examples of how they’ve helped other clients improve profitability, reduce tax, or manage cash flow.

The answer will reveal whether they are an advisor or simply a number cruncher.

Conclusion

Choosing an accountant is more than finding someone to file your tax return. It’s about building a relationship with someone who understands your business and supports your goals. Asking the right questions before signing helps you find a partner who communicates well, offers clear fees, and delivers consistent, reliable service.

Before making your final decision, take time to compare firms, check reviews, and meet with at least two accountants. The best fit will combine technical expertise with genuine interest in your success, giving you confidence that your finances are in safe hands.