Simple Business Guide #6 - How to choose a good Accountant
Having good business partners to support your business as it grows is essential. You can't do everything yourself, so getting the right people in place from the start is very important. Most start-up and smaller businesses won't be able to afford, or won't need, these partners employed full-time, so outsourcing is the way forward. At first you will probably only need a solicitor to help you with contracts, terms of business etc, a marketing or design agency to help you with branding, setting up a website etc, and an accountant to help you manage your finances. This guide aims to give you some pointers to help you choose the right accountant from the start.
Qualifications
It might surprise you to hear, but anyone can call themselves an "accountant", even if they have no formal qualifications. Can you imagine going to the hospital and the doctor telling you that he is not actually a doctor, but he has done some first aid courses so you'll be fine? Sounds ridiculous, but if you choose an accountant who is not qualified this is essentially what you would be getting.
Choosing an accountant with a qualification from one of the major Accountancy Bodies means you are getting someone who has not only gone through a proper training process, including gaining relevant experience, but they also need to comply with on-going training requirements in order to remain a member of their Accountancy Body. This means you are getting someone who should be suitably qualified and experienced to act on your behalf.
The main qualifications to look out for are from the ICAEW, CIMA or ACCA. Reputable accountants will be proud of their membership of their Accountancy Body so are likely to display their logo on their website or other marketing material.
Experience
The kind of experience your accountant has is also very important when deciding which one to choose. Ask about their background, what kind of clients they already have, or have worked with in the past. Ask if they have a particular area of specialism, which many do. Ideally someone who has experience in your particular sector would be useful as they will have a better understanding of how your business works.
Service level
Ideally you want an accountant who will do more for you than just your accounts and tax returns once a year. A good accountant should be much more proactive about keeping in touch with you so that they can provide you with on-going support. They should take an interest in your business and how it works from your very first meeting, and should continue to do so.
It is also important to ask what other services your accountant can provide. Do they have experience in tax to help you minimise your and the business's tax liabilities? Can they help you with business advice to help you run your business better? Can they help you if you look to sell your business in the future, making sure that you receive the best price and minimise your tax liability?
Price
Many people focus on price when deciding on an accountant and can make the mistake of choosing the cheapest one. However paying a bit more to get the right accountant who can add value to your business is worth every penny. A better accountant should be able to maximise your tax savings which alone would justify their higher fee.
Do make sure you check how they charge though. Most modern accountants now charge a fixed fee for agreed work, rather than an hourly rate. This is much better for you as it helps you budget for their costs. But ask as well how they charge for any ad hoc enquiries, as many accountants still charge for each phone call, or email, or letter, so you may find yourself paying each time you speak to them.
Relationship
When you first meet them you will know fairly quickly if they are someone who you can get on with, and who you feel you can trust. Remember that they will be helping you to look after your money so trusting them is very important. Speaking to, or meeting a few accountants will give you a good idea of which one you feel most comfortable with and who could provide you with the most added-value service.
Conclusion
Find your accountant early, ideally before you even start your business, as they can advise you on the best structure and many other things you need to consider before you even start trading. But most of all don't settle for someone who isn't interested in your business and helping you grow it. Instead choose someone who provides a more proactive service and who has the experience to really add value to your business.
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If you would like to discuss anything in this article, or need some help getting your business off the ground, or taking it to the next level, then please feel free to contact us. Don't forget - the first consultation is FREE.
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