How to hire an accountant for your small business?

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Accountants are professionals who not only major in crunching numbers but something more that adds value to the business. It means you need to have the right person on the team, to stay on top of accounting.

The question is how to find accountants for your small business.

You must consider several factors before hiring an accountant and mainly your budget. Small businesses lack financial resources, and spending a lump sum on hiring experienced accountants can be a luxury. However, you can outsource anytime before being ready to hire full-timers.

This post will help you understand how to hire an accountant and what must be your primary considerations along the way.

Table of contents

●  Is it mandatory to hire an accountant for your business?
●  A bookkeeper or an accountant: What do I need?
●  What do accountants do for small businesses?
●  How to hire an accountant for my business?
●  Conclusion

Is it mandatory to hire an accountant for your business?

Any successful business starts its journey by managing finances. You must have enough start-up capital to set up and run a business, pick the right price for your products or services, and other considerations require the assistance of an accountant or an advisor.

As you proceed further, you set up long-term goals of achieving a profit and keeping an eye on your bottom line, setting up accounting systems, and regularly updating or monitoring your data. Owners must fulfil numerous business accounting needs to survive in the market.

Hiring an accountant is not a mandatory requirement for small businesses. Get accounting software and fulfil your requirements if you are skilled enough to handle your numbers and deal with taxes. However, an accountant is a must when a business starts expanding, and finances get complicated.

Furthermore, your business starts showing red flags, which mandates the need for a professional, like:

●  Spending significant time on accounting processes
●  Error in financial reports
●  Data inaccuracy
●  Cannot keep up with the latest trends and government regulations
● Failure to meet tax submission deadlines

You can manage your accounts when you are a sole trader, have a simple record-keeping part in business, have low transaction volume, and use cloud accounting software for tax and VAT. However, you need an accountant when you file annual accounts at Companies House or with HMRC.

A bookkeeper or an accountant: What do I need?

Businesses confuse about whether to hire a bookkeeper or an accountant. A bookkeeper focuses on recording and updating your daily transaction moving through accounts, and keeping up with the changing government regulations.

Considering the data recorded by a bookkeeper, an accountant creates financial statements and analyses them. Accountants are responsible for numerous business tasks that further assist in growth.

Small businesses in their initial years can survive with a bookkeeper, as they have the knowledge and skills to fulfil your basic accounting needs. They maintain your books and help in tax preparation; you don’t need to hire an accountant for taxes separately.

What do accountants do for small businesses?

Accountants perform numerous responsibilities for small businesses.

●  They record and manage transactions in the absence of bookkeepers
●  Prepare and analyse financial reports
●  Cash-flow management and budgeting
●  Offers advice
●  Prepare and submit tax returns
●  Update you about current trends and government regulations
●  Analyse business performance and help in the growth

How to hire an accountant for my business?

To hire a personal accountant for a business needs time and effort. As the term “accountant” is not legally bound, anyone can consider themselves one. But experience and qualifications matter when you expect a successful business. Here are a few things you can do while hiring an accountant for your small business:

1. Ask for referrals
The search begins with asking for referrals from close ones or business associates. After listing a few names, look into their client reviews and working patterns on online forums, but never fail to meet them personally.

2. Know their qualification
When you hire chartered accountants, you have peace of mind, as your finances are in the hands of a qualified candidate. Accountants can gain a degree from different accounting bodies in the UK, but a chartered accountant degree is at the top.

Look into an accountant’s qualifications and certifications, and ask if they are a member of any professional bodies in the UK.

3. Relevant experience
Qualification is not sufficient in the field of accountancy than gathering practical experience. Such an experienced accountant can understand your financial situation and help you grow your finances over time.

However, ask if they are experienced in the same business type. It gives you and the accountant confidence in handling any situation in the company.

4. Look into their expertise
Some accountants may be experts in the field of tax, besides being specialised in accounting tasks, while others may be different specialisations. You must decide what mostly fits your business requirements before looking for accountants.

5. Consider the cost
If hiring in-house accountants, you pay salary plus employee benefits, but for outsourcing accounting, you pay only for the services they offer. An accountant charges you according to the business size and type, annual turnover, financial and tax complexities, and accountant’s qualifications and experience.

You must ask for hidden charges, payment methods, and service costs. Some accountants charge you per hour, and others may ask for a fixed payment monthly or yearly.

6. Experience with technology
Every business understands the need for technology in accounting and finance. Therefore, your accountant must be skilled in using the latest accounting software to avoid unnecessary mistakes or delays.

7. Check the soft skills
Qualifications and experience stand on one side, and having the right work skills is another. These soft skills include communication, problem-solving, attention to detail, time management, etc.

8. Availability
Availability is a primary concern when you hire an accountant online or outsource to accounting firms. You need to ask them how to connect when you encounter a problem.


Hiring the right accountant for a business is a time-taking process and can be expensive for small businesses.

Make sure you understand your business and its requirements before looking for accountants. It ensures you find the right fit for your business.