The finances of any small business are often an afterthought to the wider business activities – such as the actual operations, the ‘thing’ you do. However, the finances of any business make or break it.
How do you know whether you have the right accountant for you and your business? Or, if you don’t have an accountant and you’re looking for one, how do you know you’ll pick the right one?
Here are some things to consider, to support you in making sure you have the right accountant for your business.
Bookkeeper versus Accountant
Firstly, what’s the difference between a bookkeeper and an accountant?
There can be overlap of activity between a bookkeeper and an accountant, or an accountant could provide both services.
Bookkeeping is the day-to-day activity of recording the transactional accounting information in your business. Usually, a bookkeeper will work within the accounting system to post sales and purchase invoices and reconcile bank transactions.
Bookkeepers may also help with VAT returns and, potentially, payroll.
The role of an accountant is more of a 360 view of the business’s finances. They will support with the compliance side of things, statutory accounts for limited companies and corporation tax returns, as well as self assessments.
A good accountant will also offer tax planning advice for businesses, to ensure you’re tax efficient prior to the end of the financial year, as well as provide business advice to support you and your business with its needs.
Some accountants will offer both bookkeeping services, to help free you up to work on more important things in your business, as well as the overall accounting services.
It’s important to know which type of accounting resource support your business needs.
Understand Your Needs
This brings us nicely to understanding your needs. What support does your business need?
Do you need both bookkeeping support, as well as tax and compliance support? Do you need overall business advice and support?
Think about what it is you need help with, before speaking with an accountant.
Also think about whether or not location matters. Do you need your accountant local to you, so you can pop in? Or can you work with your accountant remotely? This will help you to either narrow down geographical location or open it up wider.
Some accountants, and accounting practices, will have specific skills and expertise in certain areas and industries, or even with particular taxes. If you work in a complicated or niche industry, this may be beneficial to you.
Thoroughly think about what you need help with, how you want to work with them and what it’s important that they can do, before you go searching for an accountant.
Qualifications
The term ‘accountant’ is not protected by law in the UK. This means that anyone can call themselves an accountant, regardless of whether they have the qualification, experience and expertise to back it up.
It’s important that you look into any potential accountant you may work with, to ensure they’re qualified and have the right expertise to help you and your business.
Accounting qualifications in the UK are:
- ACCA – Association of Certified Chartered Accountants
- ICAEW – The Institute of Chartered Accountants in England and Wales
- ICAS – The Institute of Chartered Accountants of Scotland
For more information on qualified accountants, you can check out the CCAB – The Consultative Committee of Accountancy Bodies. This is an umbrella group of chartered professional bodies in Britain.
Referrals, Reviews and Your Network
The right accountant for you might be someone closer than you think. Ask friends, family and your network who they work with and if they would recommend their accountant to you. Ask other small business owners who their accountant is, and if like working with them.
You don’t necessarily have to go with the recommendation, but it will at least help you create a shortlist of accountants to look into.
Look at accountants and accounting practices’ websites for testimonials as well, to get a feel for them. Create a list that you can dig into in further detail, to help you narrow down your search.
What Tech do They Use?
It’s the modern, technical age, what technology accountants use should be factored into your search for the right one.
Is the accountant an expert at one system, and can support you to get the very most out of it?
Or are they a jack of all technologies; do they work with all the accounting software packages on the market, so have a broad spectrum they have to work with?
Do they offer software free of charge included in their services? What support do they offer with their services?
Thoroughly look into what tech-suite any potential accountant uses, and make sure that marries with what you want and need to use in your business.
There are some accounting software packages you’ll want to avoid, because they won’t do everything you need them to do. Work smarter, not harder!
What Services do They Provide?
You’ve already thought about what you need from your accountant, but what else can they do to support you?
Some accountants will offer professional fee protection, which is support if you’re ever investigated by HMRC for any taxes.
Is the service all encompassing? Is accounting software included? Pre-year end business reviews for tax efficiencies? Post year end review and sign off meetings?
And how does the accountant charge? Is it a fixed fee, so you can plan your budget? Do they offer monthly payments, to help you spread cash flow? Or do they charge hourly?
Think about what’s absolutely necessary from your accountant, and what would be nice to haves, and then see if anyone on your narrowed down list can do everything.
Could You Work with Them?
Ultimately, whoever you choose, you have to be able to work with them – can you?
Is the accountant, or the accounting practice, approachable? Would you feel comfortable asking questions? How do they communicate with you?
Do you just want someone you can work with at an arm’s length, and have the most minimal contact with? A practice that provides an all-around, supportive and communicative service probably isn’t for you.
Or, do you want to have the freedom to pick up the phone and ask a question without being charged for every phone call? If this isn’t included in the service provided, then it’s probably not a good fit for you.
There’s lots of things to consider and factor in to getting the right accountant for your small business.
If you want to learn more about our services you can view them here or book a Discovery Call with us.
As a flavour, our Small Limited Companies and Sole Trader services come with a version of Xero and Dext free of charge, and also can support with:
- Bookkeeping
- VAT Returns
- Payroll
- Annual Accounts
- Tax Returns
We can also provide:
- Professional Fee Protection
- Unlimited telephone and email support
- Pre-year end business review meetings for tax efficiency
- Post year end accounts and tax return meetings