At the start of 2025, there were 5.64 million small businesses in the UK — and the vast majority of them work with an accountant at some point. So the question isn’t really whether to use one. It’s how to find local accountants who actually do the job well.

The honest answer is that proximity matters less than it used to. Cloud accounting software, video calls, and shared document portals mean a firm based across town can work just as closely with you as one down the road. But that cuts both ways: a firm can be physically local and still be impossible to reach, reactive rather than proactive, and more interested in your direct debit than your business.

What we’ve found — working with owner-managed businesses and new companies across Greater Manchester and the UK — is that the things that make an accountant genuinely useful are rarely the things advertised on their homepage. Here’s what we’d actually be looking at if we were choosing one.

When business owners talk about bad experiences with accountants, a few themes come up consistently: hidden fees they didn’t expect, not being able to get a straight answer, and finding out about a tax bill at the last possible moment. These aren’t niche complaints — they’re the most common reasons people switch firms.

The unresponsiveness one is particularly corrosive. You’re running a business; you need to make decisions. If your accountant takes a week to reply to a basic question, you either make the decision without the right information, or you waste a week waiting. Neither is good. And yet some firms — often the busier ones with large client portfolios — operate on a model where your call gets triaged and answered eventually, rather than promptly.

Hidden or unexpected fees are a related problem. Not because accountants are necessarily trying to catch you out, but because scope creep is real and some firms aren’t upfront about what’s included and what isn’t. A self-assessment return, a Companies House filing, a quick VAT query — each can attract a charge you weren’t expecting if the engagement letter wasn’t clear.

Worth asking upfront: what’s included in your monthly fee, and what would you charge extra for? A straightforward answer is a good sign. Evasion is a red flag.

The local-versus-online debate comes up a lot in small business circles, and in our view it’s slightly the wrong framing. The real question is whether the firm you’re considering will give you the service level you need — and that’s independent of their postcode.

That said, there are genuine reasons why some business owners prefer a local firm. Being able to sit down in person for a tricky conversation — a complicated tax situation, a business restructure, a difficult year-end — can make a real difference if that’s how you process information best. Face-to-face builds trust faster for a lot of people, and trust matters in this relationship.

There’s also something to be said for a firm that understands the local business environment. If you’re a trades business in Greater Manchester, an accountant who regularly works with similar businesses in the region will have a more instinctive feel for your situation than one who has never dealt with CIS or the local contractor market.

But proximity on its own means nothing if the firm is hard to reach, rarely proactive, and sends you a tax return to sign 48 hours before the deadline. A well-run remote firm that replies same-day and flags issues in advance will serve you better than a local one that doesn’t. Use location as one factor — not the deciding one.

Here’s the distinction we’d encourage every business owner to think about: is the firm you’re considering going to manage your compliance, or are they going to actively help you run a better business?

Compliance work — filing your accounts, submitting your VAT returns, running payroll — is the baseline. Every accountant does it. But the ones who really earn their fee are the ones who spot an opportunity or a problem before you do. They notice that your drawings structure is inefficient. They flag that your profit margin has shifted and it’s worth understanding why. They tell you about a change in the rules — like Making Tax Digital for Income Tax, which becomes mandatory for sole traders and landlords with income over £50,000 from April 2026 — before it lands on you as a surprise.

That kind of proactive support requires two things: capacity (the firm has to have the time to look at your numbers beyond once a year) and genuine interest in your business. Both are worth exploring in an initial conversation. Ask the accountant: when did you last proactively contact a client with advice they hadn’t asked for? What does your year-round communication look like? The answer will tell you a lot.

A firm that only contacts you at year-end is, effectively, a compliance processor. That has its place — but it’s not the same as having an accountant in your corner.

Most accountants offer a free initial conversation, and we’d encourage you to use it as a proper evaluation rather than a formality. A few things worth covering:

• How do you handle ongoing queries? Email only? Phone? WhatsApp? What’s the typical response time? Some firms are strict about formal channels; others are more flexible. Know which suits how you work.
• How will you tell me about relevant tax changes or planning opportunities? If the answer is vague, that tells you something about how proactive they’re likely to be.
• What software do you use, and is it included? Cloud accounting software — Xero, QuickBooks, FreeAgent — should ideally be part of the package, not an add-on. Ask who manages the setup.
• Are you qualified and regulated? This matters more than it sounds. Look for ACCA, ACA (ICAEW), or CIMA membership. These bodies have professional standards and complaints procedures. An unregulated bookkeeper calling themselves an accountant has none of that oversight.
• What does onboarding look like? The first few months with a new firm should involve some structure — understanding your business, getting access to previous returns, setting up systems. A firm with no clear onboarding process is a firm that hasn’t thought carefully about client experience.

None of these questions are trick questions — a good firm will answer them easily and confidently.