How to Find the Best Accountant for Your UK Agency
Choosing the right accountant is one of the most important decisions an agency owner makes. This guide covers what to look for, what to ask, and what to avoid — so you can make an informed choice.
In this guide
What Makes a Good Agency Accountant?
A good agency accountant does more than file your returns on time. They understand the commercial realities of running a creative or marketing agency — the lumpy revenue, the contractor dependencies, the cash flow gaps between doing the work and getting paid.
The best agency accountants combine technical competence with genuine business understanding. They can explain your Corporation Tax liability and also help you decide whether to hire that next team member. They know the difference between revenue and media passthrough without you having to explain it.
- Understands agency revenue models: retainers, project fees, and media passthrough
- Experience with creative and marketing businesses specifically
- Provides regular management information, not just annual accounts
- Proactively flags tax-saving opportunities and cash flow risks
- Uses cloud accounting software (ideally Xero) and can set it up properly for your needs
- Communicates in plain English, not accounting jargon
- Is responsive — you shouldn’t have to chase your accountant
Key Questions to Ask a Prospective Accountant
Before you commit, have a proper conversation. A good accountant will welcome detailed questions — it shows you’re serious about your finances. If they seem evasive or dismissive, that tells you something too.
- How many agencies or creative businesses do you currently work with?
- How do you handle media passthrough and disbursements for VAT purposes?
- What does your onboarding process look like, and how long does it take?
- How often will we have calls or meetings, and who will I actually speak to?
- What management reporting do you provide, and in what format?
- How do you approach tax planning — is it proactive or just at year end?
- What accounting software do you use, and will you set it up for us?
- What are your fees, and what’s included? Are there any additional charges I should know about?
- Can you help with R&D tax credit claims if we develop proprietary tools or processes?
- What’s your typical response time for queries?
Red Flags to Avoid
Not all accountants are a good fit for agencies. Some warning signs are obvious; others only become apparent once you’re already working together. Here are the most common red flags agency owners report.
- They don’t know what media passthrough is, or how agencies typically structure their revenue
- They only communicate at year end and you never hear from them in between
- Their fees are quoted hourly with no cap — costs can spiral unpredictably
- They can’t explain your tax position in terms you understand
- They’re slow to respond to queries (consistently more than 48 hours)
- They push you towards software they prefer rather than what works for your business
- They don’t provide management accounts or interim reporting of any kind
- They can’t advise on IR35 or contractor compliance with confidence
- They treat every business the same — no tailored advice for your sector
- They miss filing deadlines or make errors you have to catch yourself
What to Expect from Pricing
Accountancy fees for UK agencies vary significantly depending on your revenue, complexity, and the level of service you need. Understanding the pricing landscape helps you compare quotes fairly.
Most modern agency accountants charge fixed monthly fees rather than hourly rates. This gives you predictability and means you won’t be penalised for asking questions. Hourly billing can discourage you from picking up the phone, which defeats the purpose of having a proactive adviser.
- Expect fixed monthly fees rather than hourly rates from modern firms
- Basic compliance (accounts, tax returns, VAT) for a small agency typically starts from around £300–£500 per month
- More comprehensive packages including management accounts, tax planning, and regular calls can range from £500–£1,500+ per month depending on complexity
- Xero or accounting software subscriptions are sometimes included in the fee
- Be wary of very low headline fees — check what’s actually included and what costs extra
- Payroll, R&D claims, and ad-hoc advisory work may be charged separately
- Ask for a clear breakdown of what’s included before you sign anything
How to Switch Accountants
Switching accountants is simpler than most people think. Your current accountant is professionally obligated to hand over your records when you give notice. The process is well-established and your new accountant will manage most of it for you.
The best time to switch is at the start of a new financial year, but it’s not essential. If your current accountant isn’t serving you well, waiting months for a convenient date just prolongs the problem.
- Give notice to your current accountant (check your engagement letter for the notice period)
- Your new accountant will send a professional clearance letter to the old firm
- Your previous accountant must hand over all records and working papers
- The new firm will review your existing setup and identify any issues
- Expect the transition to take two to four weeks in most cases
- Ensure your new accountant has access to your Xero, bank feeds, and HMRC online accounts
- Don’t let loyalty keep you with the wrong accountant — it’s a business relationship, not a marriage
Frequently Asked Questions
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