Define the accounting service
Avoid comparing a year-end accounts package with a service that includes regular bookkeeping and management support as if they were equivalent.
| Work | Deliverable to agree | Common boundary |
|---|---|---|
| Bookkeeping | Reconciled and coded records at an agreed frequency | Who supplies receipts and resolves queries |
| Accounts and tax compliance | Named filings and preparation timetable | Which entities and personal returns are included |
| Management reporting | Useful performance and cash information | Frequency, commentary and meetings |
| Payroll | Defined payroll and pension tasks | Separate payroll responsibilities and fees |
| Advisory work | A specific decision, analysis or project | Specialist expertise and separate engagement |
Verify the people and the firm
ICAEW advises checking qualifications and experience and provides a directory for its members and firms. Where another professional body is claimed, verify it through that body’s own directory.
Ask who will do the routine work and who reviews it. Sector experience can help, but request a clear explanation of how that experience changes the proposed service.
Compare fees against a written scope
Provide transaction volume, legal structure, VAT position, employee count, existing software and current record quality. Disclose outstanding filings or corrections before accepting a fixed-fee proposal.
Ask about setup, catch-up bookkeeping, extra advice, software licences and dealings with HMRC. Confirm how fees change if transaction volume or company structure changes.
- Named deliverables and responsible person.
- Deadline for you to supply records.
- Response arrangements for routine questions.
- Professional indemnity and complaints procedure.
- What happens when the engagement ends.
Keep ownership of records and decisions
Ensure the business can access its accounting records and export them in usable formats. Agree how bank feeds, administrative accounts and software subscriptions are managed.
Review the accounts and returns before approval and retain the supporting explanations. Outsourcing preparation still requires the business to provide accurate information and exercise appropriate oversight.
Plan a clean handover
Agree who handles the next filing deadlines and any open queries. Create a list of records, opening balances and authorisations needed by the incoming firm.
Use the first reporting cycle to assess timeliness and clarity. Decide whether the service is helping you understand cash and performance, rather than judging it only by documents filed.
Frequently asked questions
Do accounting software and an accountant do the same job?
No. Software stores and processes records; an accountant provides agreed professional work and support.
The right combination depends on your record keeping and the scope you buy.