Hiring an accountant on the strength of a low headline price alone is one of the most common mistakes London small business owners make, and one of the most avoidable. A short, well-structured conversation before you sign anything can reveal far more about whether a firm will genuinely deliver affordable, reliable service than any quote on its own. Asking the right questions upfront protects you from expensive surprises further down the line.
Why A Short Interview Saves You Money Later
Treat the initial conversation with a prospective accountant as an interview, not a formality. You are entrusting this person or firm with sensitive financial information and legal compliance responsibilities, so it is entirely reasonable to ask pointed questions before committing. A firm confident in its service will welcome the scrutiny, while one that becomes vague or defensive under simple questioning is telling you something important.
Spending thirty minutes on a proper vetting call costs nothing and can save you from a year of mismatched expectations, missed deadlines or unexpected fees that erode any saving you thought you were making.
Prepare your questions in advance rather than improvising during the call. Business owners who walk into these conversations with a written list tend to come away with far more useful information, and it also signals to the accountant that you are a serious, organised client, which can set a positive tone for the relationship from the very first conversation.
Questions About Qualifications And Experience
Start with the basics: which professional body are they registered with, such as ICAEW, ACCA or AAT, and how long have they been practising? Ask specifically who will be handling your account day to day, since some firms quote a partner's experience but assign the actual work to a junior team member. It is also worth asking how many clients of a similar size and structure to your own business they currently work with.
A confident, specific answer to each of these questions is a good early sign. Vague or evasive responses suggest you should keep looking, regardless of how attractive the price appears.
It is also reasonable to ask how the firm keeps its knowledge current, given how frequently UK tax rules change. Continuing professional development is a formal requirement for members of recognised bodies, and a firm that can speak knowledgeably about recent or upcoming changes relevant to your business is demonstrating exactly the kind of ongoing competence a low-cost, unregulated alternative simply cannot guarantee.
Questions About Pricing Structure And What Is Included
Ask for a written breakdown of exactly what the quoted fee covers, and equally important, what it does not cover. Does the fee include bookkeeping, VAT returns, payroll and self-assessment, or are these charged separately? Is phone and email support included, or billed by the query? Firms offering clear, all-inclusive bookkeeping and accounting services tend to be far more predictable to budget for than those that quote a low base fee and add charges as the year progresses.
Also ask how fees are reviewed over time. Some firms increase prices annually in line with inflation, while others adjust based on transaction volume or business growth. Understanding this now avoids an unwelcome surprise at renewal.
Request a written engagement letter that sets out the agreed scope and fee in black and white before any work begins. This document protects both sides and gives you something concrete to refer back to if a disagreement about scope arises later. A firm that hesitates to provide one, or treats the request as unnecessary, should raise questions about how seriously they take formal client agreements.
Questions About Communication And Availability
Find out how quickly you can expect a response to an email or phone query, and whether you will have a single, named point of contact or be routed to whoever is available. Ask how they handle urgent queries near filing deadlines, and whether video calls or in-person meetings are available if you prefer face-to-face conversations for complex decisions.
Good communication is often the single biggest differentiator between accountants at similar price points, and it is entirely reasonable to ask for specifics rather than accepting a vague promise of "quick" responses.
Ask, too, how the firm handles busy periods such as the January self-assessment deadline or the end of the tax year, when many practices become stretched thin. A firm with a clear plan for managing these peaks, rather than simply hoping capacity holds up, is far more likely to maintain consistent service standards when you need timely answers the most.
Questions About Software And Day-To-Day Processes
- Which accounting software do you use or recommend, and is training included?
- How do you receive receipts, invoices and bank statements from clients?
- How often will my accounts be reviewed and reconciled throughout the year?
- What happens if I fall behind on sending across my paperwork?
- Do you offer any automated reminders for deadlines and payments?
The answers reveal how organised and modern the practice actually is, which has a direct bearing on accuracy, turnaround time and, ultimately, cost efficiency over the long run.
If you are not yet using cloud accounting software, ask whether the firm will help you get set up and whether any training is included in the fee or charged separately. Migrating from spreadsheets or paper records to a proper system is one of the single most valuable things a good accountant can help a small business achieve early in the relationship.
Questions About Relevant Industry Experience
Ask whether the accountant has worked with businesses in your specific sector, whether that is retail, hospitality, freelance creative work or professional services. Industry familiarity means they already understand common allowable expenses, typical cash flow patterns and sector-specific compliance quirks, which reduces the learning curve and the risk of errors in your first year working together.
An accountant with broad but shallow experience across every sector imaginable may still do a competent job, but one with specific, demonstrable experience in your field is likely to spot opportunities and pitfalls faster.
Consider asking for a specific example of advice they have given a similarly sized client in your sector within the last year. A concrete, relevant example is far more reassuring than a general claim of "broad experience across many industries", and it gives you a genuine sense of how they think about businesses like yours.
Questions About Handovers And Notice Periods
Finally, ask what happens if the relationship does not work out. What is the notice period for ending the engagement, and how straightforward is it to transfer your records to a new accountant? A transparent firm will explain this clearly without hesitation, while a firm that makes switching deliberately difficult may be relying on inertia rather than genuine client satisfaction to retain business.
It is also worth asking what format your records and accounts will be kept in, and whether you retain full ownership and access to them at all times. A modern, client-friendly practice will give you continuous access through cloud software, meaning a future handover, should you ever need one, is straightforward rather than a drawn-out administrative headache.
The Bottom Line
The questions you ask before hiring an accountant matter just as much as the fee you are quoted. Covering qualifications, pricing detail, communication standards, software, sector experience and exit terms gives you a rounded picture of whether a firm's bookkeeping and accounting service genuinely represents good value. A little diligence at the outset is the most reliable way to ensure affordability and quality go hand in hand throughout your working relationship.
Looking for an Affordable Accountant in London?
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Fred Michael & Co Ltd is an affordable accountant in London built around your business, not a one-size-fits-all package. Get in touch and we will talk through where your business is now and where it needs to go.