How to Choose a Bookkeeper in the UK — 10 Questions to Ask Before You Sign

Why the choice matters

A bookkeeper has access to your business bank account, your income figures, and your expenses. They file VAT returns on your behalf. They produce the numbers that go to HMRC. Choosing someone unqualified, uninsured, or inexperienced creates a specific risk: errors in your records that cost you money in overpaid tax, underclaimed expenses, or HMRC penalties.

The bookkeeping profession is not formally regulated — anyone can call themselves a bookkeeper. The questions below separate those who can do the work properly from those who cannot.

Question 1: Are you registered with a professional body?

Reputable bookkeepers are registered with either:

• AAT (Association of Accounting Technicians)
• ICB (Institute of Certified Bookkeepers)
• IAB (International Association of Bookkeepers)

Or they hold a broader accountancy qualification — ACCA, ICAEW, CIMA — that includes bookkeeping competence.

Registration requires passing exams, meeting CPD requirements, and complying with a code of ethics. An unregistered bookkeeper has no external accountability.

Question 2: Do you have professional indemnity insurance?

Professional indemnity insurance protects you if the bookkeeper makes an error that costs you money. If they miscalculate your VAT and HMRC issues a penalty, your recourse against an uninsured bookkeeper is limited.

Ask for confirmation of the policy and the level of cover. £100,000 minimum is typical for a sole trader client; higher is better for more complex businesses.

Question 3: Are you registered for anti-money laundering supervision?

Bookkeepers who handle client money or prepare accounts are legally required to be supervised under Anti-Money Laundering regulations. If they are not attached to a professional body with AML oversight, they must register directly with HMRC as a supervised entity.

Ask: "Who is your AML supervisor?" A blank look is a red flag.

Question 4: Which accounting software do you work in?

The answer should be Xero, QuickBooks, or FreeAgent for cloud-based bookkeeping. If the answer is spreadsheets only, move on — you need MTD-compliant software, and spreadsheets alone are not sufficient.

Ask if they are certified: Xero Certified Advisor or QuickBooks ProAdvisor certification demonstrates platform competence.

Question 5: Have you worked with businesses like mine?

Industry experience matters for categorisation. A bookkeeper who works primarily with retail businesses may not know the VAT treatment of professional services. One who has worked with contractors understands IR35 nuances. Ask for specific examples, not general claims.

Question 6: What is included in your monthly fee — and what is extra?

Get clarity on exactly what is included:

• Bank reconciliation — monthly or quarterly?
• Invoice recording — do they enter sales invoices or just reconcile from the bank?
• VAT return preparation and submission — included or extra?
• Management accounts — included or extra?
• Year-end liaison with your accountant — included or billed separately?

A £150/month package that includes VAT returns and monthly P&L is better value than a £100/month package that charges separately for both.

Question 7: What is your process for communication?

How quickly do they respond to questions? Do they use a client portal, email, or phone? Are there regular review calls, or is it entirely reactive?

A good bookkeeper should be proactively telling you when your tax estimate changes, when a VAT deadline is approaching, or when an unusual expense needs discussion. If communication is purely reactive, you are getting a data entry service, not a bookkeeper.

Question 8: Who actually does my work?

Some bookkeeping practices take you on, then hand you to a junior staff member. Know who will be doing your reconciliation and who to contact when you have a question. There is nothing wrong with being serviced by a junior — as long as there is senior oversight and a named point of contact.

Question 9: Can you provide a reference from a similar client?

A professional bookkeeper should be able to provide at least one client reference in a similar industry or business size. Alternatively, look for reviews on Google, Xero Advisor Directory, or LinkedIn recommendations.

Be cautious of bookkeepers who cannot point to any satisfied clients you can speak to.

Question 10: Will you provide an engagement letter?

A professional bookkeeper provides a written engagement letter setting out the scope of services, fees, responsibilities on both sides, and the data protection basis for handling your information. No engagement letter is a red flag — it means there is no clear record of what was agreed.

What a good first meeting looks like

A good bookkeeper will ask you about your business before quoting. They will want to know your industry, your transaction volume, whether you are VAT-registered, and what software you currently use. A quote issued without understanding your business is a guess.

If a bookkeeper quotes immediately without asking questions, or quotes suspiciously cheap without explanation, treat it with caution.

The right bookkeeper saves you more than they cost — in tax, in time, and in peace of mind that your compliance is handled. Take the time to find one you can trust.