Questions to ask before hiring an accountant

A good accountant does much more than file your tax return. They keep you compliant, help you avoid penalties, and give you a clearer view of your cash and profit. The wrong one can cost you in missed deadlines, slow replies and missed opportunities. These are the questions worth asking before you sign.

Bookkeeper, accountant or tax adviser?

Professional	Typical work
Bookkeeper	Recording transactions, reconciling bank accounts, invoicing and sometimes payroll
Accountant	Year-end accounts, tax returns, management reports, advice on structure and growth
Tax adviser	Specialist tax planning, complex or international tax, disputes with tax authorities
Auditor	Independent review of accounts, required for some larger or regulated organisations

Questions about qualifications and experience

• What qualifications do you hold, and which professional body are you a member of? Examples include CPA in the US, or ACCA and ICAEW in the UK.
• Do you hold professional indemnity insurance?
• How many clients do you have in my industry and of my size?
• Have you worked with businesses that sell online, trade internationally or hold crypto, if that applies to you?

Questions about services and fees

• What exactly does your fee include: bookkeeping, payroll, VAT or sales tax, year-end accounts, personal tax?
• Do you charge a fixed monthly fee, hourly, or per task?
• What counts as extra work, and how is it priced?
• Can you help me with tax planning during the year, not just after it ends?
• Will you represent me if the tax authority opens an enquiry?

Questions about working together

• Who will handle my work day to day: you, or a junior member of the team?
• How quickly do you usually reply to emails and calls?
• Which accounting software do you use or support, such as Xero, QuickBooks or Sage?
• Can you work with an all-in-one system if I run invoicing, payroll and inventory together, such as FlexifySuite from Flexify Ltd?
• How do you remind me about deadlines and the information you need?
• How often will we review my numbers together?

Red flags

• Vague answers about fees or scope.
• Promises of unrealistically large tax savings or "loopholes".
• No written engagement letter.
• Slow or no replies before you have even signed up.
• No professional body membership or insurance.

How to switch accountants smoothly

1. Sign an engagement letter with the new accountant first.
2. They will usually contact your previous accountant for handover information.
3. Make sure access to your accounting software and tax accounts is transferred.
4. Check that no filing deadlines are missed during the change.

Compare local firms by browsing accountants and tax advisers on Trades Area, and read our guide to choosing a business bank account.

Frequently asked questions

When should a small business hire an accountant?

Many businesses hire one when they register a company, take on staff, register for VAT or sales tax, or when bookkeeping and tax start taking too much of the owner's time.

How much does an accountant cost for a small business?

It depends on your size, transactions and the services you need. Many accountants offer fixed monthly packages, so ask for a written quote that lists what is included.

What is the difference between an accountant and a bookkeeper?

A bookkeeper records day-to-day transactions. An accountant uses those records to prepare accounts and tax returns and to give financial advice.

Can I change accountants at any time?

Usually yes, subject to your engagement letter's notice terms. Your new accountant can normally request handover information from your old one.

This article is general information, not financial or tax advice.