An accountant is more than someone who balances your books. They understand what your business requires and can deliver the advice you need, when you need it, allowing you to focus on what’s important. Offering strategic support across key business milestones – from the startup phase to a future exit strategy – having an accountant who knows your business inside and out is invaluable. It's crucial to get the right advice from the start, enabling your business to scale and grow, and setting you up for success throughout your business’s lifetime.

How to choose the right accountant

Selecting an accountant is a pivotal business decision, especially for small businesses. A good accountant can save you essential time and help your business thrive; a bad one could cost you money. You should be looking for a partner, someone who adds financial value to your company by making your money work harder. Beyond balancing the books, accountants should assist in raising capital through grants, government funding or tax relief schemes.

Ensure your accountant has the appropriate qualifications and is regulated by a professional body, the main ones being The Association of Chartered Certified Accountants (ACCA) and The Institute of Chartered Accountants in England and Wales (ICAEW). These bodies set and enforce standards of conduct and performance. Regulated accountants also carry professional indemnity insurance, providing extra protection if they provide negligent services or advice.

It’s also essential to find a good fit for your specific business, sector and business model. Accountants should show their skills, knowledge and experience of supporting businesses like yours. Sharing a similar business model with your accountant can be advantageous. For example, if the accountancy firm is owner managed, they will likely understand the challenges of an owner-managed business better than a large firm acquired by private equity. Request testimonials from clients who are similar in size to your business, or are a similar structure, so you can see that the accountancy firm relates to the obstacles and challenges you might face.

Knowing your business inside and out

Building a strong relationship with your accountant allows them to develop a deep understanding of your business. This enables them to offer ongoing financial advice and tailored solutions throughout your business’s lifetime. A long-lasting partnership means your accountant becomes well-acquainted with your financial history and long-term goals, aligning their guidance with your future. They can become active partners in your business, providing critical advice on every decision, helping you maximise profitability, minimise tax obligations, and optimise cash flow.

Once a long-term partnership is established, your accountant can assist you through all key business milestones. In the startup phase, they can advise you on your business’s structure, tax registrations, and initial financial planning. Having a seasoned expert on your side at this stage can be crucial. As your business grows and expands, an accountant can provide advice on scaling operations, managing cash flow, and securing further funding for development.

Securing your business’s longevity

If you explore mergers and acquisitions as part of your growth plans, your accountant can offer due diligence and valuation expertise while facilitating a smooth transition through integration strategies. Their knowledge of your business helps reduce risk. Finally, if you decide to exit your business, an accountant who has been with you throughout can prepare you for an effective sale or transition, ensuring maximum value realisation and supporting your business’s continuation after you depart.