Choosing an Accountant: Questions to Ask

Why the choice matters

Your accountant will know more about your finances than almost anyone, and their advice affects your tax, your cash and your decisions. A good fit saves money and worry. A poor fit often shows up only when something goes wrong, which is the worst time to find out. A little care at the start is worth it.

Start with what you need

Before you compare firms, write down what you want from an accountant. Some owners need the year-end accounts and tax returns done on time. Others want regular figures, a forecast or someone to talk to before a big decision. A firm that suits one will not always suit the other.

Note your business type, how many people you employ, which software you use and how much contact you expect. Then ask each firm the same questions, so you can compare the answers fairly.

Questions about the service

• Who will actually do the work, and who will I speak to? A named person and a deputy is better than a call centre.
• What is included in the fee, and what is extra? Ask for it in writing, in an engagement letter.
• How often will we meet or speak? Once a year is compliance. More often suggests advice.
• How do you communicate? Email, phone, portal, video, and how quickly do you reply?
• What software do you use, and will it work with mine?

Questions about fit

• Do you work with businesses like mine? Experience in your sector, size and stage makes advice more useful.
• What do you do beyond compliance? If you want planning, forecasting or help with funding, ask for examples.
• Can you help me grow? An accountant who has helped others through your next stage can warn you about what is coming.
• How do you charge, and how often? Fixed monthly fees are easier to budget for than hourly billing.
• Can I speak to a current client? Not every firm will, but the willingness is informative.

Red flags

• Vague answers about who does the work.
• No engagement letter, or terms that are hard to understand.
• A promise to save a specific amount of tax before looking at your figures.
• Reluctance to explain the advice in plain English.
• Pressure to sign up quickly.
• Fees that are very low compared with others, with no explanation.

Fees and value

Compare quotes on what is included, not just the price. A lower fee that excludes tax planning, meetings and queries can cost more in total than a higher fee that includes them. Ask what happens if more work is needed, and how you will be told before costs are incurred.

Trial and review

Start with a clear first year, agree what you want from it, and review at the end. A good firm welcomes a review and will adjust the service when your business changes.

Related guides

If this is useful, you may also want:

• Compliance versus advisory
• Switching accountant
• Getting the most from your accountant