Accounting is one of the essential services of any business, be it small or big.

Businesses are often forced to spend a lot on the accounting department. There are various approaches that a business can take when it comes to their accounting needs. It is a good idea to go through the different options and choose the one that will provide the most benefits without having to cost your business a lot of money.

One of the most common options people take is hiring an accounting firm.

The accounting firms take care of all the tax and accounting needs of the business and give you the chance to focus on important tasks that help increase sales and grow your company.

What Is An Accounting Firm? Why is it important for your business?

An accounting firm mainly offers services like accounting and auditing for your business. It produces financial records, so that you can easily track your revenues and expenses. Providing consulting on your business’s overall financial health is yet another important service that an accounting firm offers.

It helps you with long-range planning, such as buying property or upgrading your infrastructure. You will be, hence, able to determine how to break even and what your cash-flow needs are.

Accounting firms conduct audits by examining not only financial records, but also the processes and controls in place to ensure records are being properly kept, policies are being adhered to, and your financial practices help support your business goals and are the most efficient way to do so.

Many accounting firms offer a range of tax services. The firm’s accountants can help you figure out a new tax code to help ensure your financial reporting practices are in compliance with current IRS regulations, determine your company’s tax liability, and make sure you meet filing requirements and deadlines.

With these services, you can plan your next moves, figure out whether you are making a profit and make decisions about your company’s growth.

How To Choose An Accounting Firm For Your Small Business?

Whether you’re a business requiring a complete accountancy service or an individual in need of tax advice, choosing the right firm is important.

1. Know your business needs

You need first to understand the kind of work or responsibilities you want the accounting firm to handle for your business. If you need monthly financial statements and bookkeeping tasks, a non-certified accountant or bookkeeper can be hired. But to get tax planning advice, tax returns prepared, or audited financial statements, you need a CPA or certified public accountant. Check the type of accountants the firm has.

2. Look for small business experience

Large accounting firms like the Big 4 often charge higher fees than small to mid-sized firms. That may not be beneficial if you are a small business and have just started. You need someone who works with small businesses, and it could also be a bonus if the accountant works with businesses in your industry. While working for clients from a specific industry for a long time, some accountants get to know the related challenges very well.

3. Fees

Fees are an important consideration – after all, your accounting firm’s fees need to fit in with your business or personal budget.

Most firms calculate their fees in one of two ways – either per hour or at a fixed rate. The way in which fees are calculated and the overall amount charged depends on the firm, so make sure you clarify how much everything is going to cost before agreeing to move forward.

4. Ask About Accounting Software 

Before you choose an accountant, you’ll want to ask what software they recommend for their small business customers. You may find some accountants who are using the same old desktop accounting software. They do not want to switch to the latest online accounting solutions. You want to invest in an accounting software system that you can grow into in 3-5 years.

5. Decide Whether You Need an Accountant or a CPA Firm

Many small business owners start by managing their taxes on their own. Unlike the past, it has become much easier for business owners to do simple bookkeeping tasks with the help of advanced software like ProfitBooks, Xero, Sage, and similar others.

But after a certain point in time, it does make sense to hire a professional or a team of accountants to handle accounting, payroll, and tax responsibilities. Whether you need a CPA or a solo accounting firm depends on the scale of your business and the number of transaction you do per month.

6. Range of accounting services

For businesses in particular, you want an accounting firm that offers a range of services – such as financial management, auditing/reporting, cash flow analysis, and succession planning.

This type of firm will do far more than complete your tax return; they’ll be able to provide you with advice regarding your business’s financial situation. It’s also far more efficient to be dealing with one firm for all your financial needs.

When it comes to accounting, although the Big 4 have name and a well-deserved reputation, companies can get the same expertise and, oftentimes, better service at substantially lower fees when hiring a mid-sized regional accounting firm. If you own a small business, your accounting needs can be fulfilled by smaller firms with greater accessibility.

We have listed the top 8 accounting firms in UK for small businesses. Let’s check them out:

1. Haines Watts

Haines Watts  have developed a range of services apart from the day to day accounting to cover many of the challenges you’ll meet, from business planning, business growth support to acting as your sounding board. Having one adviser who understands your aspirations and knows your business can be a huge help. They are a group of leading chartered accountants for owner managers, working with over 35,000 business owners in the UK.

For over 35 years they have been providing specialist business advice, accounting services and tax planning.

Haines Watts’ services include:

• Management accounts: They provide you with regular management accounts giving you a clearer picture on things like cash flow, profitability, performance ratios, funding, customer activity,  credit control and budget comparisons.
• Bookkeeping services
• Audit and assurance
• UK and international tax
• Value Added Tax (VAT)
• Business improvement
• Wealth planning and protection

2. Makesworth Accountants

Makesworth is an award winning accountancy practice of chartered certified accountants. Makesworth Accountants strive to provide you with the best accounting services. Apart from that, they offer services and events to kickstart and to help you grow your business.

Makesworth’s key services include:

• Bookkeeping and Management Accounting
• Value Added Tax (VAT)
• Cloud Accounting and support
• Payroll support
• Tax planning
• Year end accounts
• Business planning

3. SJPR Accountants

SJPR Accountants are friendly and proactive accountants. They work on a real-time basis in order to allow clients to make timely decisions for their business. No need to wait three months to know your VAT bill and work out how to pay it. SJPR will also assist you and your small business with the most efficient tax strategies according to the objectives.

SJPR Accountants offer following services in the UK to individuals, companies, small to large companies of all sizes:

• Bookkeeping
• Accounting,
• Payroll services,
• Tax planning,
• Finance and Business consulting

The best part about them is that they offer packages and prices for all levels of businesses.They will analyze your business and present you with adequate pricing.

4. 3 Wise Bears Accountants

3 Wise Bears are Chartered Accountants in London. They are committed to helping small businesses achieve growth and to be on top of their finances. They work with business across a wide range of sectors in London and surrounding areas.

As a small accounting practice, they are able to adapt to the needs of their and offer a personalised service, so if you own a small business in London, they’re highly recommendable as they’ll facilitate your accounting needs and give you a painless, stress-free and transparent accounting experience. Also, if you are looking to switch accountants, they can ensure there is a smooth transition.

Wise Bears Accountants indeed go the extra mile. They are also Certified Xero Advisors and Premium FreeAgent Partners.

5. TAJ Accountants

TAJ Accountants offer bookkeeping service that are tailored to your individual business needs. Their bookkeeping and accountancy service offers the perfect solution to any business wanting to have accurate up to date records. Their Accountant team in East London work with tax returns for individuals, self-employed and companies. Their team of accountants keeps your obligations updated, and help you to save tax by making sure you are taking advantage of all potential benefits to minimize your tax. They also have a specialized Small Business Accountant firm that works with software approved by the HMRC and Companies House, ensuring total compliance with current regulations.

Getting the right advice and support in the legal or financial aspects when starting a new company is essential. This ensures the good running and growth of a business. Taj Accountants can help you through the process, assisting you step by step.

Taj Accountants’ key services include:

• Bookkeeping
• Consultancy
• VAT returns
• Business startups
• Taxation

7. Modern Accounting

Modern Accounting  offers a complete range of Accounting services including Day-to-Day Bookkeeping, Cash Flow, Budgeting, Management, Advisory, Payroll and Tax advice.

They work closely with SMEs to provide accountancy, business development and tax planning services that is value for money and tailored to your needs.

Their key services include:

• Bookkeeping
• Cash Flow
• Budgeting Analysis
• Management Advisory
• Payroll Services
• Corporation Tax
• Self Assessment
• Company Secretarial Services
• Management Accounts
• Business planning.

8. Green Oak Accountants

Green Oak Accountants  work closely with their clients to help them achieve their goals by fulfilling tailored requirements. Their aim is to provide excellent customer service with commitment and compliance with legislation and accounting standards. It is a well established firm of Accountants in UK providing various Business management services including Accountancy, taxation and Consultation.

Their wide and varied clientele warrant their reliability on Industrial knowledge and best client management.

Their key services include:

9. ihorizon Accountants

ihorizon Accountants is a London based accounting firm specialising in accounting and finance solutions for entrepreneurs and tech startups. They aim to be the founders’ choice for startup accounting. They help entrepreneurs and startups in the tech industry grow by being a key thought leader in tech startup accounting. They have over 8 years experience in helping entrepreneurs and startups in the tech industry grow and an impressive client list and are establishing themselves as a key thought leader in tech startup accounting.

ihorizon Accountants’ key services include:

• Management reporting

• Company tax: Corporation tax, VAT (Moss, ECSL, reverse charge), PAYE & ongoing support.

• Company secreterial: All fillings, management of stat books & share certificates.

• Payroll

10. Pearl Chartered Accountants

Pearl Chartered Accountants are one of UK’s best chartered accountancy firms. They have helped thousands of freelancers, contractors, e-commerce and small to medium sized businesses to flourish. They help with all aspects of accounting, tax and business growth strategies across a range of different industries. They are regulated by one of UK’s premier accounting bodies, the ICAEW, so you’ll be in safe hands knowing that your accounts and taxes are handled by a competent organization.

Pearl Chartered Accountants’ key services include:

• Company accounts
• Company formation
• Payroll
• Business and Tax advice
• Bookkeeping
• VAT
• Software integration

Final Words

An accounting firm is crucial aspect in your business. You need a firm that is experienced, reliable, and ready to be there for you whenever a need arises. They will not only manage the accounting tasks but also offer practical business advice to support your business planning and growth. Good accounting firms help companies grow, by managing complex financial work and offering advice on practical business issues. This will be guaranteed to save you money in the short and long term. If you choose an accounting firm based on these tips, you reduce your risk of making the wrong choice for your small business.