# What does an accountant do for a small business?

Pick My Accountant (https://pickmyaccountant.co.uk/answers/what-does-an-accountant-do-for-a-small-business/): What does an accountant do for a small business? — Quick answer. A small business accountant handles your compliance calendar — year-end accounts, corporation tax or self assessment, VAT returns, payroll and pensions — keeps your records straight in cloud software, and advises on decisions with tax consequences: salary vs dividends, equipment purchases, VAT schemes, and growth planning. The best ones prevent problems rather than report them.

## Key facts

- Core compliance: accounts, tax returns, VAT, payroll, confirmation statements
- Advisory: dividend/salary mix, expense policy, VAT scheme choice, forecasts
- Software setup and support (Xero, QuickBooks, FreeAgent) is usually included
- They act as your authorised agent with HMRC — letters go to them first
- Typical package: £39–£89/month sole trader, £83–£227/month limited company

## What compliance work does a small-business accountant handle?

Every business has a fixed calendar of filings: self assessment or corporation tax, annual accounts, quarterly VAT if registered, monthly RTI payroll if employing, pension auto-enrolment duties, and the confirmation statement for companies. An accountant owns this calendar, files on time, and calculates what to pay and when — the unglamorous work that keeps penalties at zero.

## What advice should you expect beyond the filings?

This is where fees turn into value: how to pay yourself tax-efficiently, whether to buy or lease equipment, when VAT registration or a scheme change helps, whether to incorporate, cash-flow forecasting before big commitments, and early warning when the numbers drift. A firm that only files and never advises is doing half the job.

## What is usually not included in the package?

Check the engagement letter for the boundaries: HMRC enquiry defence (often an insurance add-on), R&D claims, business plans for funding, company secretarial changes, and personal tax for family members are commonly priced separately. 'Unlimited advice' usually means unlimited quick questions — not unlimited project work.

## FAQs

**Q: How often will I hear from my accountant?**
A: A good modern firm touches base at least quarterly, flags deadlines ahead of time, and reviews your year before it ends — when tax can still be planned. If contact is one email every January, you're buying filing, not accounting.

**Q: Do they do my bookkeeping too?**
A: Packages vary: some include full transaction processing, others expect you to keep the books in software while they review. This is the single biggest driver of price difference between quotes — compare like for like.

**Q: Can an accountant help me get a mortgage or loan?**
A: Yes — lenders routinely ask for an accountant's certificate or SA302s for the self-employed, and accountant-prepared figures carry weight with banks.

Updated: 2026-08-13

Source: https://pickmyaccountant.co.uk/answers/what-does-an-accountant-do-for-a-small-business/