While it’s certainly true that finding a good accountant is half the battle, you also need to ask the right questions – or you may be left in the dark.
Many business owners either don’t know what to ask or feel awkward asking “stupid” questions.
Here’s the thing, though: there are no stupid questions when it comes to accounting – especially when it’s your money at stake.
It’s also easy to get a bit complacent once you have an accountant, thinking they’ll just take care of everything for you.
Don’t fall into this trap.
Instead, you want to try and maintain an active role in the management of your business’s finances.
As a starting point, we’ll look at some of the best questions to ask your accountant to make sure you stay in the loop and on top of everything.
Is my current business structure tax efficient?
Your business structure is simply a way of classifying the legal status of your business for tax purposes.
For example, operating as a sole trader means there’s no legal distinction between you and your business.
A limited company, on the other hand, is a separate legal entity.
Choosing the right business structure is perhaps the most important decision you’ll make, impacting how the business operates, as well as how much tax you need to pay.
Which is best for you, depends on your individual circumstances.
For example, if you’re a sole trader with a high profit margin, it may be more tax-efficient to switch to a limited company so you can pay yourself a mixture of salary and dividends.
An accountant can take away the stress and break down the pros and cons based on your specific circumstances. They’ll also look at things like, whether you have a high or low risk business for liability purposes.
If it turns out you do need to switch, they can walk you through the process.
What taxes do I need to pay?
The simple answer is, it depends.
Your accountant will make you aware of all your tax obligations, which vary depending on your business structure. So, it’s a good question to ask.
As an example, sole traders pay Income Tax on their self-employed income, whereas in a limited company, the profits stay in the business until you pay them to yourself (e.g. in the form of a tax-efficient salary if you’re a company director). You can also pay yourself in dividends, if there’s available profit within your business.
Evidently, it can all get a bit convoluted, which is why having an accountant on hand is so helpful!
Do I need to register for VAT?
Value Added Tax (VAT) is a type of sales tax on all products and services deemed non-essential by HMRC.
If you’re a business owner, you only need to worry about it when your VAT taxable turnover reaches the registration threshold in any 12-month period.
This is currently £90,000.
Now, some businesses choose to register for VAT voluntarily (to either start reclaiming it or simply to boost the business’s reputation), but be sure to speak to your accountant before making a decision on this.
What financial records do I need to keep?
Good record keeping is essential – both for HMRC compliance and managing your business.
Your records will generally show every transaction that happens in the business, and this allows you to track your spending.
At a minimum, you’ll need to keep records of your:
- Business expenses
- PAYE records (wages, tax, and National Insurance deductions)
- VAT records
- Financial documents (balance sheets, cash flow statements, and forecasts)
With Making Tax Digital (MTD) slowly being rolled out, it’s more important than ever to start keeping digital records using special purpose-built software.
Records also need to be kept for a specific period of time after submission, and your accountant can advise you on how long exactly, as it’s different for everyone.
How can I make my business grow?
First and foremost, you’ll want to set clear and actionable goals for yourself in both the short and long term.
Plan ahead (especially in the early days), and make sure you understand all of your tax obligations so you don’t get caught out.
It’s important to remember that a good accountant is more than just a tool to help you stay compliant.
They can also give input on things like cash flow management, tax efficiency, and your overall growth strategy.
Are there any upcoming changes I should know about?
Tax laws and regulations are constantly changing.
For example, the standard multiplier for business rates has decreased from 55.5p to 48p in 2026/27, and the minimum rate per hour for employees 21 or older has increased from £12.21 to £12.71.
These changes were announced as part of the 2025 Autumn Budget.
It’s part of your accountant’s job to keep you informed, but there’s no harm in asking directly if there’s anything you’re unsure about.
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.
