Guide
How to choose the best accountant for a small business in London
London has thousands of accountancy firms, and most of them file accounts on time. The difference between an adequate accountant and a good one lies elsewhere. Here is what to check, and the questions to ask before you sign.
In short
The best accountant for a small London business is qualified and supervised, quotes a fixed fee in writing, tells you exactly who will do the work, works in the software you use, and raises tax planning before your year end rather than after it. Reviews and response times tell you the rest.
1. Check the qualification, and what it means
Anyone in the UK can call themselves an accountant. Look for membership of a recognised professional body: CIMA for chartered management accountants, ACCA for chartered certified accountants, one of the chartered accountancy institutes, or ATT and CIOT for tax specialists. Members in practice must hold a practising certificate, carry professional indemnity insurance and meet continuing development requirements.
The letters also tell you the training. Chartered management accountants are trained in reporting and tax as well as costing, forecasting and business strategy, which suits owner-managers who want the numbers explained. Statutory audit is a separate, regulated activity; most small companies are exempt and do not need it.
2. Ask for a fixed fee, in writing
A good firm quotes a fixed annual fee based on your turnover, transaction volume and the services included, and sets it out in an engagement letter before any work starts. Be wary of low headline prices that exclude the director's tax return, payroll or VAT, or that switch to hourly billing when something unusual happens.
3. Find out who will actually do the work
In larger firms the partner who wins the work is rarely the person who prepares it. Ask who prepares your accounts, who reviews them, and who answers your emails. Continuity matters: someone who knows your business spots problems faster than someone reading your file for the first time each year.
4. Look for planning before the year end
The single best test of an accountant is when they talk to you about tax. If the first conversation each year happens after the year end, most of the useful decisions are already fixed. Ask what they review two or three months before your year end, such as capital spending, pension contributions and the salary and dividend mix.
5. Check they are ready for the changes of 2026 and 2027
- Making Tax Digital for Income Tax became mandatory for sole traders and landlords over £50,000 in April 2026, and extends to £30,000 in April 2027.
- Companies House identity verification applies to every director and person with significant control, with the transition for existing directors ending in November 2026.
- Dividend tax rates rose by two percentage points in April 2026, changing how directors should pay themselves.
6. Read the reviews properly
Google reviews are a fair signal, but read what people actually praise. Responsiveness, clear advice and deadlines being met are what matter. A handful of detailed reviews from real businesses is worth more than a large number of one-line ones.
Questions to ask before you sign
- What exactly is included in the fee, and what would cost extra?
- Who will prepare my accounts, and who will I speak to?
- How quickly do you usually reply to a query?
- What will you review before my year end?
- Which software do you work in, and who owns the subscription?
- How do you handle the switch from my current accountant?
If you are moving from another firm, our guide to switching accountants explains what happens to your records.
Common questions
Questions we are often asked
Check that they are qualified with a recognised body, ask for a fixed fee in writing, find out who will actually do the work, ask what they review before your year end, and read their Google reviews for evidence of responsiveness and clear advice.
Chartered accountants belong to one of the chartered accountancy institutes and may be authorised for statutory audit. Chartered management accountants are members of CIMA, trained in financial reporting and tax alongside costing, forecasting and strategy. Both can prepare accounts and tax returns for small companies.
Fees depend on turnover, transaction volume, whether VAT and payroll are included, and the state of the records. Ask for a fixed annual fee in writing that lists what is and is not included, so you can compare quotes like for like.
Contact
Bring us last year's accounts and we'll tell you what we'd change.
An initial conversation takes half an hour and costs nothing. If we are not the right practice for you, we will say so.