What is an accountant?
Believe it or not, this isn’t a silly question – and you certainly won’t be the first to wonder. In general, an accountant’s role is to review and analyse your financial records, keeping track of things like your income, expenditure, and liabilities. Think of them as a financial inspector; someone who ensures everything is accurate, organised, and compliant with HMRC’s rules and regulations.
The specifics can vary depending on the type of accountant and the needs of the business – but at their core, they’re there to make your financial life easier, keep you compliant, and help you hold on to more of your money.
Whether you’re a sole trader, a small business owner, or a limited company director, every business can benefit from having the right accountant in their corner.
What does an accountant do?
Accountants do much more than
file your tax returns once a year. A good accountant can help you with a wide
range of things, including:
- Filling in your tax forms correctly and keeping you compliant with HMRC
- Minimising your tax bill by identifying reliefs and allowances you may not know about
- Saving you time - freeing you up to focus on running your business rather than your taxes
- Improving your cash flow and helping you budget properly
- Launching a new business or advising on the right business structure
- Managing business debt
- Recording all your expenses accurately so your tax bill is as low as it can be
- Advising on financial planning and business strategy
- Alerting you to upcoming thresholds - such as the VAT threshold - before they catch you out
- Guiding limited company directors on the most tax-efficient salary based on their circumstances
Can an accountant save me money?
As a business owner, it’s not always easy to know what can be claimed. An experienced accountant will make sure you’re not paying a penny more in tax than you need to. In many cases, the savings they unlock more than cover their fees – which are also a tax-deductible business expense.
Can anyone hire an accountant?
Are all accountants expensive?
No – there is such a thing as a good cheap accountant. Just like there are bad expensive ones. It’s worth comparing accountancy packages to find one that suits your needs and budget.
What makes a good accountant?
- Good communication: Be realistic about how often you’ll need to be in touch. Online accountants work via email, phone, and live chat; high street firms offer face-to-face. Neither is better, it just depends on what suits you.
- Consistency: Most people prefer dealing with the same person each time rather than being passed between account managers. It builds trust and means your accountant develops a thorough picture of your business.
- Reliability: If they’re slow to respond or don’t give you enough notice to act on information then you’re well within your rights to expect better.
- Sector knowledge: Look for someone with experience in your type of business. If you’re a contractor in the construction industry, for example, someone familiar with CIS returns is a real advantage.
- Proactive advice: A great accountant doesn’t wait for problems to arise. Expect input on tax efficiency, financial planning, and business growth, not just basic compliance.
How to change accountant
If you’re not happy with your current accountant – whether it’s a lack of proactive advice, slow responses, or simply feeling overcharged – the good news is that switching is easier than most people think.
Shop around for an accountancy service that suits your needs and budget, and your new accountant will handle the rest. Once you’ve made the switch, they’ll contact your previous accountant to request all your records and manage the handover on your behalf.
A good accountant is the backbone of any well-run business. They help you maintain accurate records, stay on top of compliance, and plan for the future. If yours isn’t doing that, it’s worth making a change – and there’s no shortage of options out there.
Whether you’re hiring an accountant for the first time or switching to a new one, having the right questions ready from the start will help you make a confident, informed choice.
Ready to find the right accountant for your business? Compare accountancy packages to get started.