Finding a good accountant is an unenviable task for many a new business. Most people do not know where to start the search, let alone know how to choose between one accountant and the next.
The basic accounting functions may be the same but every business owner’s needs and expectations are slightly different. You therefore need to ask yourself what are the most important things you want from your accountant and then find one that fits the bill.
Here are a few tips:
1) The biggest complaint I hear from people switching to us from other accountants is poor communication. Whether they just don’t speak the same language, do not keep in regular contact or do not provide them with the support they need – when they need it.
If you want to avoid this pitfall then you must meet with your prospective accountant beforehand and have a good chat with him or her about your business. Gauge how interested they are in your business and whether they have existing clients doing similar things to you. Always ask for contact details of those existing clients so you can have a chat with them too.
2) In a UK200 group survey, the biggest reason for switching from one accountant to another was for receiving incorrect or poor advice.
Most people are not going to know that they have received incorrect advice until HM Revenue & Customs (HMRC) come knocking at their door. The best defence against this one is to check your prospective accountant’s credentials. What professional bodies are they a member of and how long have they been in practice? Make sure they have Professional Indemnity Insurance in place to cover any loss you make as a result of their mistake.
3) Finally, tax planning. If paying the least amount of tax permissible within the law is important to you – and it is certainly important to us – then make sure your accountant is doing everything they can to reduce your tax bills.
Ask them what they will do now and what they will do as your business grows. Methods of tax minimisation change depending on the size of your business so make sure your accountant gets you the advice when you need it rather than after it is too late.
I hope you find those tips helpful. Further ideas can be found on our website here and Business Link also have a great article here.
Tags: Accountants
