How to choose an Accountant

Believe it or not accountants come in all shapes and sizes. There’s the big business types and the small but perfectly formed. How do you find the one that’s right for you?

Firstly think about what you need from an Accountant. 

Do you want statutory requirements only ie just for the tax return and end of year accounts or do you want information to use in your business? 

How often do you want updates on your financial position?

Do you need payroll?

Are you happy doing your own bookkeeping of do you want to hand over a bag of receipts? 

What tax returns do you need? If you’re a limited company you’ll need personal tax and corporation tax returns.

Once you’ve a list of what you need ask around for recommendations from other business owners you know. Try Facebook, Twitter, LinkedIn and business networks you are involved in. 

When you’ve got the recommendations arrange to have meetings with your short list. Most Accountants will happily have a free chat to talk about what you need and how they can provide it. Ask them about the services they provide and see how they cross check with your list. Remember they are working for you to build your business so there shouldn’t be any ‘we don’t do that’ answers. If you need something then find someone who will provide what you need. 

Most Accountants will do packages with a monthly cost this prevents big bills and usually will give you the reassurance of a fixed amount to help you budget. Ask about the charge for any backlog, they should be clear on the charge and what you can expect for that and when. 

A good Accountant can make life immeasurably better, they can smooth the way, take a weight off your mind and free you up to run your business. They are the ones that are worth every penny. If you have an Accountant that doesn’t do that for you, think again, the right one should. They should explain things in a way you understand and give you clear information when you need to make good decisions about your business. 

You should feel confortable and trust them, it’s a gut thing, if your gut says its wrong then move onto the next. They should empower you to build your business with confidence, when you’ve found that you’ve a good partnership that will underpin the future of your business. 

Top tips for book keeping and tax returns

All small business owners recognise that feeling of dread when looking at the pile of receipts and invoices that really should be a set of books. This is the time to get them sorted, tax return time is coming up and without accurate books you could end up overpaying on tax or even worse paying a penalty.

Keep it simple
A set of books needs to be such that a tax inspector can easily find the data used in a tax return and match it to the original documents. Whilst computerised accounts systems are effective they maybe more complicated than you need. If you are set on doing the books yourself make sure the tools are up to the job by running it past an accountant or ask them to set you up a pro forma.

Don’t leave it until the last minute
There is nothing worse than Christmas having gone and the accounts still aren’t a set of books never mind ready to do the tax return. Do it now and if you can’t, accept that and find someone who can do them for you.

Have an expert calculate your tax
The tax calculators online aren’t always accurate (shock horror) think how many people over or under pay each year. Having your tax calculated by an expert is a double check to ensure you are paying the correct tax and claiming all the allowances you are eligible for.

Look for qualifications
If you are going to bring in an expert check they are qualified, anyone can do bookkeeping but those who are members of the AAT (Association of Accounting Technicians) are qualified to do this work and have met the requirements you need for membership of this body. They are skilled in bookkeeping, tax matters and end of year accounts. Always ask the question which professional body they are linked to, and check it out!

Doing the books is such a common gripe of small business owners, the question to ask is ‘how much could I earn in the time I’m doing the books?’ You’ll usually find that your time is better spent elsewhere as you’d pay a book keeper less than you’d make! Remember they can do it all quicker than you too, as its their area of expertise. As soon as you hand over your carrier bag, box file or ring binder you can stop worrying and get on with running your business!

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