7 red flags you’ve outgrown your accountant – and what to do about it

From my experience running contractor sites for over 20 years, two complaints come up more than any other when people talk about their accountants: missed deadlines and poor communication.

But those are just part of the picture. Here are seven clear signs that your current accountant isn’t keeping up – and that it might be time to switch.

1. Deadlines keep getting missed (or only just met)

If you’ve ever had to chase your accountant about filing dates, or found yourself holding your breath as they submit things last-minute, that’s not good enough.

Most contractor limited companies have a very simple calendar. Accounts to Companies House. Corporation tax due nine months and one day after year-end. VAT returns every quarter. PAYE filings on or before payday.

A late confirmation statement might seem minor, but miss too many and your company risks being struck off.

And if your accountant is to blame? You’re the one who pays the penalty.

These things shouldn’t be your problem – it’s your accountant’s job to stay on top of it. If you’ve had near-misses (or worse, actual fines), it’s a clear sign they’re not keeping pace.

2. You can never get hold of them (or you’re constantly explaining yourself)

I’ve dealt with more than a few accountancy firms – and if there’s one thing that always drives contractors up the wall, it’s poor communication.

Some firms take days to reply. Others bounce you around different staff, so you never know who’s handling your account. Even when they do get back to you, the answers might be vague, rushed, or make you feel like you’re asking too much.

A decent contractor accountant should have time for you. Some even guarantee same-day replies – or at least acknowledge your message quickly so you’re not left wondering.

Having a single main point of contact also makes a significant difference. You shouldn’t have to re-explain your setup every time you send an email.

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(Most) contractors don’t always ask for much – just a bit of clarity, and someone reliable who responds in a timely way.

3. They don’t really understand contractors

This one’s more common than you’d think.

Some accountants treat you like a regular small business. That might not sound too bad – until they start giving you advice that doesn’t fit.

Maybe they suggest taking all your income as salary. Or they don’t mention IR35. Or they seem unsure about things like Flat Rate VAT, director’s loans, or dividend timing.

A contractor accountant should be across all of the following:

• How to balance salary and dividends tax-efficiently
• When section 455 tax might apply (especially if you’ve got a director’s loan hanging around)
• What you can and can’t claim when it comes to business expenses, especially anything with a dual purpose, like travel or home office use
• Whether Flat Rate VAT still makes sense (it doesn’t for most, unfortunately)
• How do you account for IR35, including the small company exception
• How BADR (business asset disposal relief) works if you plan to close your company via an MVL

If your accountant gives you general advice that doesn’t reflect your actual setup, they’re probably not the right fit.

4. The software is clunky or gets in the way

These days, most accountants offer software to help you manage your company’s finances. For contractors, this usually means a service like FreeAgent (widely used within the industry) or Xero – you can read our accounting software guide here.

Some firms use their own in-house tools instead, and to be fair, some of those systems are very good. The name doesn’t matter as much as how well it works.

You should be able to log in easily, view live bank feeds, create invoices, and get a quick snapshot of how much money you can actually take. If the system makes simple things feel difficult – or worse, if you have to email someone every time you need a number – that’s not a good sign.

Software should make things easier, not add friction.

5. They’re doing too much – and it could land you in trouble

There’s a fine line between helping and taking over. And when it comes to the Managed Service Company (MSC) rules, crossing that line can create serious tax issues.

HMRC says a provider is “involved” if they do things like control payments, structure your contracts, access your bank account, or even promise to cover your tax liabilities. And if they’re seen as pulling the strings, your company could lose its status, meaning all your income gets treated as PAYE.

Most leading accountants are very aware of the MSC rules, especially as HMRC has live investigations open related to two firms.

You, as a director, ought to be aware of the rules, and remember – accountants are there to advise, but any decisions are up to you.

6. They can’t help with anything outside the basics

Contractors often need more than just accounts and tax returns completed.

You might need a reference for a mortgage. Or you’re considering running a side project, purchasing equipment, or lending money between businesses.

Perhaps you want to know whether to take a dividend now or wait until after your year-end, or how a pension contribution will impact your tax bill.

These aren’t unusual questions – they’re part of running a company properly. A good accountant should be able to help with all of them.

If yours can’t – or charges extra every time you ask something a bit off-script – they might be too limited for what you need.

7. You’ve been thinking about leaving for a while, but haven’t done anything

Sometimes the most enormous red flag is the one in your head.

The trouble is that thinking about moving accountants – and the practical steps involved – is stressful.

It’s easier to simply accept the status quo, assuming nothing terrible has happened.

However, if you haven’t been happy for a while, it is probably time to move on. Maybe you’re tired of slow replies. Perhaps you’ve lost confidence in the advice. Or maybe you’ve just outgrown them.

Has your once small, friendly firm grown too fast and become short-staffed, more like a ‘factory line’?

The good news? Switching is easier than you think. You don’t have to wait for your year-end. Most firms will contact your old accountant, handle the records transfer, and get everything set up without disrupting your day-to-day.

If you’re still unsure, we’ve put together some practical guides to help:

• How to judge if your accountant is doing a good job
• When’s the best time to move to a new accountant?
• How to switch contractor accountant

And if you’re looking for a fresh start, take a look at our partner accountants – we’ve been working with them for many years. We’ve also included links to dozens of other contractor specialists.