How to Hire Accounting Firms for Small Businesses in the UK?

accounting firms for small businesses

Accounting firms for small businesses have become very popular in modern times. Even your local pub around the corner has hired a firm that takes care of all its accounting needs. But how exactly do you hire accounting firms for small businesses in the UK?

This is what we are going to explore in this blog. We will start off by defining what accounting firms are and what roles they play for small businesses. Then we will move on to provide you with a small guide you can use to start hiring an accounting firm for your small business. This is a comprehensive guide, so we recommend that you reach each part in detail before making a decision.


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What are Accounting Firms?

Accounting firms are companies that provide accounting services to businesses. They not only track your expenses and earnings but also provide you with other financial services. These include auditing, tax preparation, tax advisory, and financial advice. This is not all; they usually provide you with experts in bookkeeping, payroll processing, and financial statement preparation. Accounting firms charge you according to the complexity of the service and its quality. You can either choose to hire an accounting firm for a project or partner with them on a long-term basis.


The Role of Accounting Firms for Small Businesses

Accounting firms make your life much easier if you are operating a small business. There are many roles for accounting firms for small businesses; however, for simplicity, we have only mentioned a few. These are the most important roles that an accounting firm has when it partners with a small business.


1. Compliance with Tax Laws

Running a business in the UK is a challenging task due to the complicated tax laws. You need to know about each law in detail to file your tax on a timely basis. If you run a business by yourself, this will be hard for you. This is where accounting firms for small businesses can help. They provide you with tax advisors and accountants who prepare your taxes on time.


2. Provision of Financial Advice

Your business’s growth depends on the right decisions. Think back, and you will probably realise that there were some good decisions that have placed you where you are. But what if you had someone to give you expert advice? That is exactly what accounting firms for small businesses do. They provide you with expert financial advice after analysing your business.


3. Preparation of Accurate Financial Reports

Another important role of accounting firms for small businesses is that they prepare accurate financial reports. This allows you to always have control over your firm and know where your business health lies. You can use these reports to make data-driven decisions. In addition, accurate financial reports also ensure that you are complying with the standard accounting regulations in the UK.


How to Hire Accounting Firms for Small Businesses in 5 Steps

Now that we know what accounting firms are and what their role is for small businesses, let’s begin the guide. In this guide, you will be provided with all the essential steps to hiring an accounting firm for your business.


1. Identify Your Accounting Needs

Firstly, you need to identify why you need accounting services. You need to pinpoint your needs so you know what services you should expect from an accounting firm. This will also assist you in assigning a budget.


2. Explore Firms Online

Once you have noted down your requirements and budget, start exploring firms in your area. You should use their websites, as they mostly provide detailed information about their services as well as their pricing. Start noting down the firms that provide the services you require within your budget.


3. Check Their Client Portfolio

It is important to check client profiles while hiring accounting firms for small businesses. Checking the client profile allows you to judge the experience of these firms. In addition, you can also check whether the firm you are hiring has relevant experience in your industry. Having an industry-specific accountant is always better.


4. Compare Fees

Now that you have shortlisted different companies, start comparing their pricing levels. You will need to compare the pricing of the services that you require for all the shortlisted firms.


5. Make a Decision

After comparing the prices, the time has come to make a decision. After conducting deep research and analysis of all the accounting firms, you have to choose one firm. Choose a firm that works best for you. It is always better to stay with the same firm in the long run.


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A Quick Summary

Let’s summarise what we have discussed so far about hiring accounting firms for small businesses. Accounting firms can provide small businesses with tax compliance, financial advice, and accurate financial reports. All of these roles are key to avoiding regulatory fines from the HMRC.

To hire accounting firms for small businesses, start by identifying your needs and carrying out a detailed online search. Note down all the websites that provide the service you require and check their client portfolios. In the end, you will have to make a decision by comparing the fees of each firm.


We understand that it can be challenging to trust your financial management to a third party. But it is the right way. If you are not satisfied, click here to ask an expert!