What does an accountant actually do? A simple guide for UK businesses

Plenty of business owners understand that they need an accountant, but aren’t always sure why. Beyond tax returns and spreadsheets, accountants play a vital role in helping businesses stay financially healthy, compliant, and ready to grow.

This guide breaks down what accountants actually do, in plain English, and how they support businesses across the UK.

More than just number crunching

Accountants are often seen as the people who sort out your taxes once a year. And while that’s part of the job, it’s doesn't really scratch the surface when it comes to all their responsibilities. A good accountant is a financial partner who helps you make smarter decisions, stay on top of regulations, and plan for the future.

So, what does an accountant do?

Here’s a closer look at the key tasks accountants handle for businesses:

• Bookkeeping and records
  Keeping accurate records of income, expenses, and transactions is essential. Accountants ensure everything is logged correctly and consistently.

• Tax compliance
  From VAT returns to corporation tax, accountants make sure your business meets HMRC requirements and deadlines — helping you avoid penalties.

• Payroll management
  Accountants can manage employee wages, deductions, and reporting, ensuring your payroll runs smoothly and legally.

• Financial reporting
  They prepare reports like profit and loss statements, balance sheets, and cash flow forecasts, giving you a clear picture of your business’s financial health.

• Budgeting and cash flow
  Accountants help you plan ahead, manage spending, and keep your cash flow steady — especially important during periods of growth or uncertainty.

• Business advice
  Many accountants offer strategic advice, helping you reduce costs, improve margins, and make informed decisions about investments or expansion.

How accountants support business growth

Accountants don’t just look at the past, they help shape the future. Whether it’s applying for funding, restructuring your business, or planning for long-term goals, their insights can be invaluable.

For example, an accountant might help you prepare financial documents for a loan application, or advise on the best way to manage seasonal fluctuations in revenue.

Choosing the right accountant for your business

Not all accountants are the same. When choosing one, consider:

• Qualifications – Look for chartered status or membership of professional bodies like ACCA or ICAEW.
• Industry experience – Some accountants specialise in certain sectors, which can be a big advantage.
• Communication style – You want someone who explains things clearly and is easy to reach when needed.

Accountants do far more than file tax returns. They’re trusted advisors who help businesses stay compliant, make better decisions, and plan for growth. Whether you’re a sole trader or running a limited company, having the right accountant on your side can make all the difference.