If your accountant’s name only shows up in your inbox once a year — and it’s to send a bill — you might have a problem.

For a lot of UK SMEs, the difference between a good accountant and a bad one isn’t about technical skill. It’s about vision. A bad accountant keeps your books in order. A good one keeps your business moving forward. The telltale signs of a bad accountant

Let’s start with the red flags.

If this sounds familiar, it’s time to look elsewhere:

You only hear from them at year-end. They connected you to QuickBooks or Xero once — and disappeared. They send the same generic checklist every April. You’ve never heard them mention R&D tax credits, grants, or funding schemes. Their advice sounds like, “We’ll see what HMRC says,” instead of “Here’s how to plan for next year.” These accountants aren’t malicious — they’re just reactive. They treat your business like a tax return, not a company with goals, cash flow, and opportunities.

They do the minimum: reconcile, file, invoice, repeat. And while that might keep you compliant, it won’t help you grow. What a great accountant actually does

A great accountant isn’t a box-ticker — they’re a strategic partner. The kind who challenges you, introduces new ideas, and brings you options you didn’t know existed.

Here’s what that looks like in practice:

1. They open up the conversation around grants and funding

A good accountant doesn’t wait for you to ask — they tell you what you’re missing. They should know about Innovate UK grants, regional growth funding, and local authority schemes that align with your industry.

They’ll look at your plans and say, “There’s a grant for that.”

The right accountant knows how to package your project for funding bodies and connect you with the right applications. That’s money on the table too many SMEs never even know exists. 2. They help you claim R&D tax credits — properly

If your business develops new processes, software, or products, you may be sitting on a serious tax benefit: R&D tax credits.

A good accountant will not only flag this — they’ll handle the claim end-to-end, ensuring your innovation costs are captured and evidenced correctly.

Even better: if you’re pre-profit or non-profit, R&D credits can be turned into cash back. That means a real injection of funds when you need it most — not just a tax reduction later on.

A bad accountant? They’ll tell you, “We’ll look into that next year.” 3. They give you financial visibility — not just reports

Modern accounting isn’t about spreadsheets. It’s about insight. A proactive accountant uses live dashboards, monthly reviews, and integrated forecasting tools to show where your business stands today, not six months ago.

They’ll help you model “what if” scenarios, from hiring plans to investment rounds, so you can make informed decisions with clarity and confidence.

If your accountant’s version of advice is emailing you a PDF and a bill, you’re missing out on the kind of partnership that can literally change your margins. 4. They save you money by knowing the system

From optimising dividend structures to utilising EIS and SEIS schemes, a sharp accountant helps you plan tax rather than react to it.

They know when to move funds, how to time investments, and how to position your business for funding — whether that’s equity, grants, or debt.

A good accountant will even tell you when not to spend, because they’re thinking about your cash runway, not their billable hours. The bottom line

A bad accountant fills in boxes. A good accountant fills in blanks — the ones you didn’t even know were there.

If your accountant isn’t helping you find funding, optimise tax strategy, or plan for growth, you don’t have an accountant — you have a bookkeeper with an invoice template.

In a world where financial strategy can make or break an SME, it’s not enough to stay compliant. You need someone who’s invested in your future, not just your filings.

So ask yourself: when was the last time your accountant helped you grow your business?

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