How to find an accountant
Unless you have a background in finance or accounting, you'll
almost certainly need the help of an accountant at some stage in
the running of your business. This guide helps you find the right
one.
Where to look
- You want an accountant who is officially recognised -
look for the words 'chartered' or 'certified' in their
title.
- As always, friends, families and colleagues who
have had business success can provide some of the best
recommendations, as you'll hear fist hand what their services are
actually like. Asking around is the best place to start.
- Following that, try out professional accountancy
bodies, which have strict rules that guarantee the quality
and qualifications of members:
- You can also search for accountants in your area using websites
such as:
- Also keep your eyes out in local papers and local
business directories, then check out their websites - often
a very revealing part of someone's business.
What to do next
- Once you've identified some in your area (and by looking at the
list below to get a clearer idea of what you want), draw up a
shortlist of at least three accountants and have face-to-face
interviews with all of them.
- Use the pointers below to work out what you need to
ask in the interviews.
- Also try calling prospective accountants a couple of time
to see how quickly your call is returned - this should give
you a feel of how responsive they are.
Checklist: what to look for
In the interview, ask about the following areas. Draw up a list
based on the below points to identify what your dream accountant
would be able to do.
Expertise and experience:
- Qualifications - absolutely vital. Use the
membership bodies above for guidance on which qualifications you
should be seeing.
- Membership to one of the professional bodies above
is a big bonus.
- Experience with small businesses - are they
familiar with the problems you face?
- Ideally, experience with small businesses in your
sector, or at least a solid grasp of the issues it
faces.
- Asking about capital allowances you may qualify
for can be a good litmus test to compare different
accountants by.
- Expertise in managing investments - which will
come in handy in the future (ask about retirement plan
experience).
- What success they've had - how much money they've
saved other clients, for example.
- Any client testimonials, if they have them.
Communication skills:
- You need to feel you can trust them and that they
are good at listening to and understanding your needs - talk
through what you need, what you struggle with and see how they
respond.
- You also need to make sure they respond in a way you can
understand - communication will be key to this
relationship.
How they operate:
- You want more than just tax help - you also want
an accountant who can advise you on business and your finances and
find ways to reduce costs.
- Ask them how for initial suggestions on how they would go about
doing this in the interview - explain how you keep your books and
payroll currently.
- Ask them if they provide help with business plans and how much
it costs - this can prove invaluable if you need it.
- Ask if they can carry out audits - not all accountants are
qualified to do this, but it can be a bonus.
- How many people are in their practice - fewer is
probably better as they will have more time to handle your accounts
and will typically be keener to provide a strong relationship than
a larger practise.
- But make sure you only deal with one or two of the
accountants in the practise - you don't want to be passed
from person to person without any of them really knowing your
business.
- Also ask about who their other clients are. You
don't want to get lost among other much bigger (and so more
important to them) clients - you want to be alongside similar-sized
companies.
- How they bill you - by year, by week, by hour, by
minute or by project?
- Getting a fixed rate for the first twelve months means you can
use them as much as you want (and you'll probably need to).
- By project is also good but can end up adding up.
- If they bill by minute beware, as it indicates they'll be very
scrupulous on what they charge.
- If they bill by hour or part-hour, find if they round up or
down.
- Will you be charged for phone-call queries? What if they only
last a minute or two?
- Make sure you feel the billing policy is fair and
manageable.
- Get estimates for what you think a year of them working for you
would cost in total.
- How quickly they'll respond to your queries.
Once you've chosen your accountant
Once you've chosen the person or firm you want:
- Meet with them to discuss all your requirements over the next
year or so and what their plan of action will be.
- You'll receive a letter stating all their terms and conditions
- read over this and consider getting a solicitor to check it.
- Keep in regular touch with your accountant, and ask them for
advice on running your business regularly.
- Tell them immediately if you've made any changes to your
business and about any problems.
- Regularly assess how well they are meeting your business's
needs - talk to them if you have any problems.
- Review their fees every three to five years.
Resources
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