There is a lot to think about when it comes to getting the right person to deal with your accounts, particularly in that first, highly vulnerable twelve months. In this guest article, Paul Chapman from CBS accountants gives you some insight into how to choose the right accountant for you and your business. 
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Choosing the Right Accountant for Your First Year in BusinessPosted: Jan 2, 2026

As part of our continued work to help first year businesses avoid the financial pitfalls that can lead to insolvency, we are bringing you a series of articles written by experts in their field.

In this article, Paul Chapman, Managing Director of CBS Accountants, gives us his advice on making sure you choose the right accountant for you and your business.

As you will see, there is a lot to think about when it comes to getting the right person to deal with your accounts, particularly in that first, highly vulnerable twelve months. As Paul says:

“Starting your first business is an exciting milestone, but, as Smart Business Recovery point out in their support pages, it also brings a wide range of responsibilities. One of the most important of these, and one of the areas where we often see issues, is managing your finances correctly. So, clearly, one of the most important early decisions you’ll make is choosing an accountant. The right professional can offer more than just compliance support. They can be a trusted advisor, helping guide your business through its formative year.”

He really hits the nail on the head there. So, over to Paul for more good advice.

 

Odd as it sounds, it’s about more than numbers when you choose your accountant.

Most new business owners will quite rightly focus on costs. I agree, keeping costs under control is vital both in the first year and well beyond it. However, affordability is a different thing from cost and getting value isn’t always about the amount you pay. 

Let’s start by getting rid of a myth. It is wrong to assume that all accountants offer the same service. It’s easy to be drawn in by low-cost offers when you’re starting out, only to find that the service provided is either not what you need or later needs ‘topping up’ with other costly services. Similarly, expensive services don’t always equate to the right service for you. They may be comprehensive, but if you don’t need what they offer, then the value is not there.

Pauls Key Point: Check the service level being offered by the accountant and choose based on value for your money. That may not necessarily be the cheapest or flashiest looking offer.

However, there is a second part to this test.

As a new business owner, you’ll likely have a lot of questions and need frequent advice. Your accountant should be someone you feel comfortable contacting, whether that’s for tax guidance, cash flow queries, or help interpreting financial reports. So, as well as the value test, a good accountant will also be one who can communicate effectively, do so on your level, and be able to give you information in plain English.

What I am saying here, in a nutshell, is that your new accountant should also be approachable and available. No accountant is offering value if you can’t get to see them or access the advice you need. I am not saying they should be there 24/7 for you; that would be unreasonable. However, you should be able to rely on them for the advice and information you need and get that guidance in a reasonable time scale.

Paul’s key point: Almost every accountancy firm will offer a free, no-obligation consultation. Use this opportunity to meet potential accountants in person. This allows you to assess how approachable they are, how clearly they communicate, if the service they offer meets your needs, and whether you feel they understand your business.

 

Sector knowledge is great, but that doesn't mean they are automatically right for you

If you operate in a specific niche, you may come across accountancy firms that promote themselves as sector specialists. While this can be advantageous, don’t take it at face value. Just because a firm has a polished website, a well-presented marketing pack, or advertises itself as a leader in your industry, it doesn’t necessarily mean they are the best fit for your unique business. The bottom line is that for many businesses, the advice they need is not necessarily rooted in a specialist area. Even where it is, there is still a balance between specialist knowledge and being a good accountant for you.

Take advantage of their free consultation and ask detailed questions.

Use these interactions to gauge whether their experience genuinely aligns with your needs.

Paul’s key point: Specialisms are great when they are really needed. Often, what is more important is a solid understanding of your goals, how your business runs and, of course, how to make the best decisions about your accounts.

 

Understand your compliance requirements

An accountant should also be there to protect you from compliance mistakes. New business owners are often unaware of the various financial submissions and deadlines they’re responsible for. From annual accounts and corporation tax returns to PAYE (Pay As You Earn) submissions and VAT returns (if registered), there’s a lot to manage.

A good accountant will explain:

This clarity is essential. If a prospective accountant can’t explain your responsibilities in simple terms, or doesn’t have time to do so, then they may not be the right fit for a new business owner.

Paul’s key point: Are you happy that your new accountant will make sure you know what needs to be done and when… and not be afraid to chase you if needs be?

 

Your business plan is part of choosing the right accountant for you!

Before meeting with an accountant, it’s important to have a clear understanding of your own business. I have mentioned several times now that your accountant needs to be familiar with your business and your goals, which means that happening is a two way street. They can’t help you in the right way unless you can explain your business to them.

This includes, but isn’t limited to:

These factors will help determine big decisions, like whether you should trade as a sole trader or a limited company, and whether you should register for VAT (Value Added Tax). They will also give the accountant the right framework in which to offer advice.

Paul’s Key Point: Tailored advice should always be based on the specifics of your situation and your business plan. If an accountant is offering a one size fits all solution, they may not fully understand your business.

 

Software Compatibility and Usability

Most accountancy practices will encourage you to use accounting software. Xero is a common one, but there are others. These tools allow for real-time tracking of your income and expenses and help streamline submissions to HMRC (His Majesty’s Revenue & Customs).

When discussing software, ask:

Feeling comfortable with the software you use means you’re more likely to keep your records up to date, which in turn helps your accountant give you timely and accurate advice.

Paul’s Key Point: The software should work for you, not the other way around. When you are choosing an accountant, make sure their choice of software and the support for it are an important part of your decision.

 

A Valuable Networker

In the early days of your business, you may need more than just accounting support. Legal advice, funding options, insurance, HR services, specialist business support and so on, may all become relevant sooner than you expect.

Accountants who are well-connected can introduce you to other trusted professionals in their network. So, ask a few questions. Do they attend local area network groups, for example? Ask whether they work closely with other advisers, and if they’re happy to refer you when needed? A strong network can be an asset as your business grows.

Paul’s Key Point: Networks grow businesses. It’s a cliché but true that people buy from people, so if your accountant never leaves their office, they may struggle to fully support you in the wider business sense.

 

You and your accountant should want the right thing for both of you

Choosing the right accountant in your first year is about more than ticking boxes for compliance. It’s about building a relationship with someone who understands your goals, communicates clearly, and supports you proactively. Don’t be afraid to shop around, ask questions, and take full advantage of the free consultations offered. You’re not just hiring a number-cruncher, you’re choosing a business partner. If you get it right at the start, you will get someone who will be there to help, support and of course, do the accounts, as your business grows. In fact, having the right accountant will be a vital factor in that growth.

 

Paul Chapman is the MD of CBS Accountants ltd, a family run accountants where he focuses on efficient business structuring, tax planning and business management advice.

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The voices of doom – Don’t panic, things may not be as bad for business as they sound.

How bad are things for business? You can’t help but notice that the economic news is pretty grim at the ... more

Personal guarantees can be a problem when a business becomes insolvent, and directors are often concerned about their liability. When businesses are in the start-up phase or looking to expand and grow, it isn’t uncommon for directors to sign off on a personal guarantee. While this may not be unusual it’s important to know what that could mean later.

Personal guarantees – Where do you stand and what do they mean to your finances?

Personal guarantees can be a problem when a business becomes insolvent, and directors are often concerned about ... more

You can’t help but notice that the economy is not exactly rosy. Inflation is rising rapidly, and costs are going through the roof. So why are we not hearing about huge numbers of insolvency cases?

If the economy is so bad, why aren’t we seeing a flood of insolvencies?

What happened to the insolvency crisis? Back in what now feels like aeons ago during 2021, there were rumblings ... more

If you run a business, you will be more than aware of the rising background costs. You will also be facing increases in your personal finances. Without a doubt, now is the time to maximise your resilience.

Resilience and down to earth assessment – Dealing with the rise in business costs

The cost of business crisis. Without knowing your expenditure, it is almost impossible to make a sound judgement ... more

Boris Becker recently failed to reveal his full financial situation during his bankruptcy process resulting in a prison sentence for the ex-champion. Why is full disclosure of assets so important in personal bankruptcy and business insolvency?  

Full disclosure matters when it comes to debts, bankruptcy, and insolvency.

The importance of honesty. There is nothing the press likes more than a celebrity scandal and former Wimbledon ... more

When they were launched, the Bounce Back Loans were a unique event. No security needed, no personal guarantees and just a handful of rules. Now, as the pandemic dust finally settles, some Directors are concerned about whether the BBL will turn out to be more a curse than a blessing if they are facing insolvency.

BBL anxiety - Should you be worried about Bounce Back Loan consequences?

You have probably seen various stories in the press about Directors of businesses being caught out because they ... more

One of the responsibilities of an insolvency practitioner is helping people through the solvent liquidation process or Members Voluntary Liquidation (MVL). It is a big decision and timing can be a big factor. So, is now the right time to consider it?

Time for a change? If you are considering solvent liquidation, now may be the time.

Why do people consider a Members Voluntary Liquidation? Unlike insolvency, which is driven purely by financial ... more

There were various techniques employed by the government to stave off the effects of the pandemic on business. Some were beneficial in the long run, others, such as the bounce back loans, are having serious repercussions for businesses that have not ‘bounced back’ as much as they hoped. Nearly all the measures aimed at temporarily offering a stay of action against insolvency have now been lifted but what does that mean for businesses?

All things come to an end – The end of temporary insolvency measures.

When the insolvency legislation was temporarily changed during the pandemic, I suspect there was a widespread sigh ... more

As we emerge from the storm clouds of the pandemic, for what is hopefully the last time, it’s worth standing back and taking a good look at how your business will adjust. There is a lot to consider because the Covid pandemic and the accompanying financial situation has created one of the most unusual business environments ever seen in the UK. In an amongst the workload and relief of getting back to some sort of normal (again!) we suggest you take the time to assess your trading situation, not from the usual angle of cashflow or forecasting, but in the light of a post-pandemic marketplace.

Once more around? – Things to think about coming out of the pandemic.

I heard a wonderful phrase to describe the current situation the other day. Someone said they would be glad when ... more

Riding the roller coaster - why cashflow should now be at the top of your priority list

If you run a business and don’t currently have cashflow planning at the top of your agenda, you probably ... more

Yes, for those of you that watched ‘Game of Thrones’ you will appreciate that this is the threat of bad things happening. We have heard similar phrases being used in the press, such as ‘Winter of discontent, ‘Shortages’ and stories of empty shelves.

Winter is Coming!

Yes, for those of you that watched ‘Game of Thrones’ you will appreciate that this is the threat of bad ... more

Having spent 30 years working with Companies in trouble we have seen this in the past, for example after the 2008 banking crisis, HMRC took the same approach only to return to their normal ways a couple of years later and in my experience, they can be even more aggressive as the demand for collections from the treasury increases. To make matters worse given the change in legislation in December 2020, now that HMRC are preferential creditors in an insolvency, they are likely to push even harder knowing they will be top of the queue for payment if the business fails.

Beware HMRC collections will be returning to normal SOON.

As you will appreciate, during the pandemic HMRC has been very busy dealing with the various support schemes, ... more

An End to the Temporary Insolvency Measures – Almost but not Completely

Companies in financial distress as a result of the pandemic have been protected from creditor action since last ... more

When a Company fails it is quite common that directors are excused of Wrongful or Insolvent trading. Wrongful trading, sometimes called insolvent trading, is quite a complex area to discuss and is based on the facts of each individual case so advice should be sought if you think this applies to your company.

Wrongful trading, Insolvent trading – What is it and what does it mean?

When a Company fails it is quite common that directors are excused of Wrongful or Insolvent trading. Wrongful ... more

Government Extends Help Again but are we just kicking the problem down the road?

This is the fourth time I have written about the Government extensions of the insolvency provisions brought in ... more

I the first of these BBL articles we looked at your options if you are struggling to pay your Bounce Back Loan payments. If you haven’t read that article, it may be worth reading it now because we discuss the routes available to you via the ‘Pay as you Grow’ options. In this article, we want to focus on what happens if your financial situation has progressed to a critical stage.  There is a lot of uncertainty and conflicting opinions so, we will try to answer the main points raised by the question ‘what happens if I can’t pay back my Bounce Back Loan’?

What to do about your Bounce Back Loans (BBLs) Part 2 – What if you cannot pay it.

I the first of these BBL articles we looked at your options if you are struggling to pay your Bounce Back Loan ... more

Bounce Back Loans are becoming a big problem area and we may only be scratching the surface of the impact they may well have on business. Thinking back to when they were first announced, they may not have been the covid response many limited companies wanted, but they did potentially offer a stop-gap solution.

What to do about your Bounce Back Loans (BBLs) – Part 1

Bounce Back Loans are becoming a big problem area and we may only be scratching the surface of the impact they may ... more

The Government has announced a new scheme to help individuals with debt problems. The scheme is described as ‘Breathing Space’ and comes into effect on 4 May 2021.

New Scheme Announced for Individuals with Debt Problems.

The Government has announced a new scheme to help individuals with debt problems. The scheme is described as ... more

I also think it is fair to say that Pre-Pack sales by an Administrator have had a high level of press coverage. All the evidence suggests that a Pre-Pack sale commonly leads to a better return to creditors than a forced sale shut down. But equally, creditors are understandably concerned because the sale is conducted very quickly following the appointment of the Administrator and often, they are the last people to hear about it. This concern is always worse when the sale is to a connected party.

Pre-Pack Sales to Connected Parties – The New Evaluator Process

First of all, it is fair to say this blog is very technical and probably more for our professional contacts, so if ... more

The Insolvency Service produces monthly figures for both corporate and personal insolvencies and as mentioned previously, I rarely comment on them. Partly because insolvencies are seasonal, so generally increase in the first and third quarter of the year and decrease in the second and fourth quarter and partly because there is not much to talk about.

Latest Insolvency numbers are released for March 2021.

The Insolvency Service produces monthly figures for both corporate and personal insolvencies and as mentioned ... more

The answer to the question ‘when is a good time to close your solvent business’ is never an easy one. However, with capital gains tax and asset disposal relief both still working in your favour, if you are looking to close your solvent business then 2021 or early 2022, may well be the time to make the move. If not, you could see a much less favourable tax landscape in the future.

Good news for those planning a Members’ Voluntary Liquidation (MVL)

The answer to the question ‘when is a good time to close your solvent business’ is never an easy one. ... more

Groundhog Day - Government Extends various measures to assist struggling business

Why Groundhog Day you ask? Over the last 12 months, I have posted about various Governments measures brought in ... more

VAT Deferrals – What can you do now if you still have not got the funds to pay?

Believe it or not, it has been almost 12 months since businesses in the UK were first given an answer to the ... more

I thought I would provide some thoughts on how the change may affect you because, despite the budget not quite producing the fireworks some were predicting, it did have a lot worth discussing in there.

Budget 2021 – Thoughts from an Insolvency Practitioner

Like most people, I get several excellent emails and budget summaries every year and I would guess you do too. ... more

The Insolvency Service produce monthly figures for both corporate and personal insolvencies and to be honest I rarely comment on them. Partly because insolvencies are seasonal so increase in the first and third quarter of the year and decrease in the second and fourth quarter and partly because there is not much too talk about.   However, I feel that there is a clear trend and whilst on paper the trend appears to be good news it hides several issues which will hit the economy later in the year.

Company Insolvencies in January 2021 50% lower than January 2020, but is this good news?

The Insolvency Service produce monthly figures for both corporate and personal insolvencies and to be honest I ... more

Smart Business Recovery is pleased to welcome a new member of the team

Meet Sharon – an old and new colleague.

If you have been reading our blogs or social media recently you will probably have noticed that we are very busy at ... more

Looking ahead isn't always easy but despite 2020 begin one of the most unusual years ever for many of us, there are some signs of stability ahead.

Some optimism, some hope and a big dollop of realism – Insolvency and business in 2021

I am already on the third draft of this blog. Every time I managed to get pen to paper the Covid situation or ... more

Over the last few days, a number of extensions have been announced which it is hoped to assist business affected by COVID 19. These are as follows;

Government Extends various measures to assist struggling business

Over the last few days, a number of extensions have been announced which it is hoped to assist business affected by ... more

Will I get my money? The order of payment for creditors.

There is no such thing as a simple way to close a business. Whether it is an administration or a liquidation, the ... more

What’s left for you? What will the change to HMRC preferential creditor status really mean to SMEs?

Up until the early 2000s HMRC were a preferential creditor in cases of insolvency. When this changed in 2003 it was ... more

The Government Announces new rules regarding Pre-pack sales to be implemented.

The Government Announces new rules regarding Pre-pack sales to be implemented.

The Government has announced that new rules will be brought into legislation as soon as possible. The following was ... more

Measures put in place to protect businesses from insolvency will be extended to continue giving them much-needed breathing space during the coronavirus (COVID-19) pandemic, the government announced today (24 September). UPDATED 27 November 2020

Government gives businesses much-needed breathing space with extension of insolvency measures

UPDATED 26 NOVEMBER 2020 The Government has announced extensions to previous temporary measures relating to ... more

Taking stock – Are your customers stock levels a threat to your cashflow?

There is a potential situation arising that could soon be causing some insolvency related issues, cashflow problems ... more

Changes to the regulations surrounding insolvency could spell trouble for SMEs. This article takes a look at what some of these changes are and the impact they could have on cashflow.

Supplier beware – Credit control and the Corporate Insolvency and Governance Bill 2020

Insolvency legislation rarely makes the news which is probably why one of the biggest changes to the way it works ... more

Dividends, Overdrawn Loan Accounts and Insolvency - Updated

This is a very common problem in insolvency and here is the reason why!! At some stage, a director of a new ... more

Keep your cashflow forecast up to date – 5 tips and 1 warning

Why then are we bothering to dedicate a full article and video to cashflow forecasts if they are so common? Well, ... more

Since the Covid-19 pandemic insolvency has been on the minds of many business owners. Pressing the panic button is unlikely to be the right response though.

Am I insolvent? – Why pressing the panic button may not be the best idea.

The initial shock of the lockdown. When the government announced the Coronavirus lockdown our telephone began to ... more

Bankrupt, Insolvent or in need of rescue?

  What happens when you reach out to an Insolvency Practitioner?   I doubt any business owner ... more

Employee rights is an insolvency

What are employees entitled to in an insolvency process?

One of the major aspects of any insolvency is what will happen to the employees. Any news story in relation to an ... more

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