Companies need accountants to keep the numbers straight and HM Revenue & Customs happy, yet hiring the right one is rarely a tick-box exercise. As your practice or small business gains momentum you’ll hit the same cross-road: recruit a full-time ledger wizard or outsource to a firm that already employs them. Below are the five practical areas every UK owner, finance director or practice manager should nail down before the contract is signed.
1. Value for Money: Outsourcing vs In-House
Outsourcing the accounting function is still the fastest way for growing practices to punch above their weight. A 2025 survey by Accountancy Age shows a typical UK outsourcer charges £150–£600 per month for a package that includes bookkeeping, VAT, management accounts and corporation-tax return. Compare that with a full-time, in-house accountant:
| Cost Head | 2025 Averages (UK) |
|---|---|
| Salary | £42 000 |
| Employer NIC (13.8 %) | £5 796 |
| Auto-enrol pension (3 %) | £1 260 |
| Software + CPD + benefits | £1 200 |
| True annual cost | £50 000 |
Even after allowing for inflation, outsourcing remains 46 % cheaper for any business below £1 million turnover or fewer than 50 staff. The saving is not just cash; you also buy instant access to multi-disciplinary teams (bookkeepers, chartered accountants, tax advisers) without recruitment lag or employment-law risk.
Added upside: outsourced firms already operate cloud ledgers (Xero, QuickBooks, FreeAgent) that are Making-Tax-Digital compliant, so you side-step software ramp-up time.
2. Hire Qualified Professionals – What Do the Letters Mean?
Depending on client complexity you can choose from four tiers of UK-regulated accountants:
| Qualification | Typical Focus | Can They Represent You at HMRC? |
|---|---|---|
| AAT | Bookkeeping, basic tax | No |
| ACCA | All areas except insolvency | Yes |
| ACA / ICAEW | Audit, tax, advisory | Yes |
| CIMA | Management & cost accounting | Yes (non-audit) |
Rule of thumb:
- Micro-clients (<£100 k turnover, simple VAT) – AAT-bookkeeper supervised by a chartered firm.
- SMEs (VAT registered, outside audit threshold) – ACCA or CIMA.
- Audit or fundraising – ACA with audit-practising certificate.
Always verify the licence on the official registers (ACCA, ICAEW, CIMA) and request proof of professional indemnity insurance (minimum £500 k for general work, £1 m if you handle client money).
3. Check References
Accountants who wish to outsource should take time to look around or find accountants or accounting firms before selecting the best of the lot and as per their budget. It is safe and advisable to seek client references from potential accountants to understand their previous performance. You should ask the right questions about the firms, such as their areas of specialisation, years of experience in the industry, location and pricing specifications. After considering these factors, you can choose an accountant who best fits your needs.
4. Fixing Rates
As a growing practice, you must be clear right from the beginning about the rates that you can offer and intimate the hired accountant about the same. The rates agreed on should be fair and reasonable. Estimates for monthly expenditure and accumulated savings should be decided at the onset of the agreement. This makes it easier to develop a financial rapport and build a streamlined and systematic workflow.
5. Understand the Business Environment
The financial health of your practice and entrusting accounting responsibilities to an outsourced accountant are two sides of the same coin. As a business, you should be aware of your business requirements and limitations before making the crucial decision of outsourcing. It is important to understand the work environment, analyse the problems to be addressed and seek out the best professionals for completing the job.
Planned and structured decisions will go a long way for your accounting practice. If you take the wise decision of hiring skilled and experienced manpower for your accounting practice, then you will build a strong growth trajectory for your accounting business.
FAQ
Should I hire an accountant or do it myself?
If your turnover tops £85 000 or you value your time above £30/hr, a UK-qualified accountant saves tax, prevents HMRC fines and frees you to grow the business.
What qualifications should an accountant have in the UK?
Look for chartered credentials: ACA, ACCA, CIMA or ICAS. For basic bookkeeping AAT is fine; for HMRC investigations ensure chartered status.
How much does it cost to hire an accountant in the UK?
Outsourced packages run £150–£600/month. In-house salaries average £42 000 plus NIC and pension. Most start-ups save 46 % by outsourcing.
How do I check an accountant’s references?
Ask for two UK clients in your industry, verify the licence on ACCA/ICAEW register, and request proof of indemnity insurance.
Is outsourcing accounting safe for small businesses?
Yes if you sign a GDPR-compliant contract, use encrypted cloud software and confirm the firm’s HMRC agent authorisation.
Parul is a dedicated writer and expert in the accounting industry, known for her insightful and well researched content. Her writing covers a wide range of topics, including tax regulations, financial reporting standards, and best practices for compliance. She is committed to producing content that not only informs but also empowers readers to make informed decisions.