- Original Poster
- #1
1 Qualified Accountant
Accountant is not a regulated word. That means anyone can call themselves an accountant, regardless of their qualifications, or lack of them. Choose a member of a recognised accountancy body (with a practising certificate) to help ensure the person you are hiring has the relevant quals, experience, and has not just been released from Ford Open Prison. Plus youll have a professional body to complain to if things go awry.
2 Qualified Bookkeeper
Anyone can call themselves a bookkeeper too. So the same goes for ensuring a bookkeeper is suitably qualified, experienced, and of reasonably good character. Be careful a bookkeeper isnt out of his depth if also preparing your accounts and advising on your taxes. After all, you wouldnt have a dental technician pull your tooth out.
3 Value Pricing
You wouldnt have a builder start work on your extension without first obtaining a quote or, at the very least, an estimate. So dont make that mistake with an accountant. Some of those who do not publish their fee rates employ value pricing techniques: that is, the more important or urgent a piece of work is to you, the higher the fee theyll quote for a particular job. So try to choose an accountant with a published price menu after all, you wouldnt eat in a restaurant that concealed its prices.
4 Money Laundering
Be careful what you say to your accountant: he has a legal duty to secretly report you to the authorities if he has reason to suspect that you have been guilty of tax evasion, no matter how minor. If he doesnt report you, he faces possible criminal charges, financial ruin, and up to two years in prison. Furthermore, if he tips you off by discussing the matter or admitting to having reported you even when directly challenged, he would face similar criminal charges of tipping off. The same Money Laundering obligations also apply to your bank manager, financial advisor, and (to a lesser extent) your solicitor.
5 The Right Sized Firm
Many businesspeople choose large and prestigious accountants in the belief that the high fees will at least ensure a top-notch service, only to be disappointed when their affairs are assigned to a trainee or junior member of staff. Many large practices are too busy concentrating on their larger and more important customers to be able to offer a first class service to their smaller customers. If that sounds rather like the way your bank treat you, then think twice before going to a practice thats too big for your business.
6 The Cheap Price No-Advice Job
We all know to reject the most expensive or overpriced quote, but anyone in purchasing will also tell you to reject the lowest quote too. Anyone under-pricing could be desperate for work ask yourself why they cant get work at the market rate. A low quote sometimes results in a corner-cutting no-frills job with nothing in the budget for tax advice. Cheap price and no-advice can lead to an expensive tax bill.
7 The Loss-Leader
Some accountants quote a low-ball first year fee to gain clients, rather like insurance companies do, and then hike up their fees in the second year. Beware of those offering a loss-leader fee but charging astronomical rates for unanticipated work such as a business plan or a tax enquiry. Look carefully at the whole package you are negotiating: what exactly is included, and just what rate will you pay if you want your accountant to do something else, such as attend a VAT visit or a meeting with your bank manager?
8 Free Advice
Many accountants offer a free initial consultation; but what about those who offer you free unlimited access via phone calls and/or meetings all year round? That is totally uncommercial and unrealistic. Ask yourself how you would feel about customers of yours availing themselves of such an offer; would you be inclined to deliver a top-notch service if you were obligated to spend say two days of your week giving a free service to your customers? Or might you be tempted to skimp on the work? If an accountant doesnt know enough to charge something for their services then they really dont know enough to be a help to your business.
9 Approachability
A recent survey by Sage announced that the top pet-hate people have for their accountants is that theyre never available, and sometimes take days to return calls. Youll have to make your own value call as to whether the accountants you shop around sound pleased to hear from you, or is it all a bit of a chore for them? Do they talk about you and your business, or about themselves and their business? Do they take a genuine interest in what you have to say about your business, or are they too wrapped up in their own affairs? If theyre too busy to see you as a prospect, theyll be too busy to deal with you as a client.
10 The X-Factor
Q. How do you spot an accountant with a personality?
A. He looks at your shoes rather than his own when shaking hands.
Alright, were not all as bad as that. But lets face it, the stereotypical accountant is an introverted geek with poor social skills. To find one that can bring something to the party, rely on your gut instinct when making your choice; the very same instinct you use daily to make business decisions. Regardless of how clever they might be, an accountant is generally only as good as his communication skills allow him to be. So focus on that aspect: can you actually understand what your accountant is saying, and how well does he listen and respond to what you say?
Accountant is not a regulated word. That means anyone can call themselves an accountant, regardless of their qualifications, or lack of them. Choose a member of a recognised accountancy body (with a practising certificate) to help ensure the person you are hiring has the relevant quals, experience, and has not just been released from Ford Open Prison. Plus youll have a professional body to complain to if things go awry.
2 Qualified Bookkeeper
Anyone can call themselves a bookkeeper too. So the same goes for ensuring a bookkeeper is suitably qualified, experienced, and of reasonably good character. Be careful a bookkeeper isnt out of his depth if also preparing your accounts and advising on your taxes. After all, you wouldnt have a dental technician pull your tooth out.
3 Value Pricing
You wouldnt have a builder start work on your extension without first obtaining a quote or, at the very least, an estimate. So dont make that mistake with an accountant. Some of those who do not publish their fee rates employ value pricing techniques: that is, the more important or urgent a piece of work is to you, the higher the fee theyll quote for a particular job. So try to choose an accountant with a published price menu after all, you wouldnt eat in a restaurant that concealed its prices.
4 Money Laundering
Be careful what you say to your accountant: he has a legal duty to secretly report you to the authorities if he has reason to suspect that you have been guilty of tax evasion, no matter how minor. If he doesnt report you, he faces possible criminal charges, financial ruin, and up to two years in prison. Furthermore, if he tips you off by discussing the matter or admitting to having reported you even when directly challenged, he would face similar criminal charges of tipping off. The same Money Laundering obligations also apply to your bank manager, financial advisor, and (to a lesser extent) your solicitor.
5 The Right Sized Firm
Many businesspeople choose large and prestigious accountants in the belief that the high fees will at least ensure a top-notch service, only to be disappointed when their affairs are assigned to a trainee or junior member of staff. Many large practices are too busy concentrating on their larger and more important customers to be able to offer a first class service to their smaller customers. If that sounds rather like the way your bank treat you, then think twice before going to a practice thats too big for your business.
6 The Cheap Price No-Advice Job
We all know to reject the most expensive or overpriced quote, but anyone in purchasing will also tell you to reject the lowest quote too. Anyone under-pricing could be desperate for work ask yourself why they cant get work at the market rate. A low quote sometimes results in a corner-cutting no-frills job with nothing in the budget for tax advice. Cheap price and no-advice can lead to an expensive tax bill.
7 The Loss-Leader
Some accountants quote a low-ball first year fee to gain clients, rather like insurance companies do, and then hike up their fees in the second year. Beware of those offering a loss-leader fee but charging astronomical rates for unanticipated work such as a business plan or a tax enquiry. Look carefully at the whole package you are negotiating: what exactly is included, and just what rate will you pay if you want your accountant to do something else, such as attend a VAT visit or a meeting with your bank manager?
8 Free Advice
Many accountants offer a free initial consultation; but what about those who offer you free unlimited access via phone calls and/or meetings all year round? That is totally uncommercial and unrealistic. Ask yourself how you would feel about customers of yours availing themselves of such an offer; would you be inclined to deliver a top-notch service if you were obligated to spend say two days of your week giving a free service to your customers? Or might you be tempted to skimp on the work? If an accountant doesnt know enough to charge something for their services then they really dont know enough to be a help to your business.
9 Approachability
A recent survey by Sage announced that the top pet-hate people have for their accountants is that theyre never available, and sometimes take days to return calls. Youll have to make your own value call as to whether the accountants you shop around sound pleased to hear from you, or is it all a bit of a chore for them? Do they talk about you and your business, or about themselves and their business? Do they take a genuine interest in what you have to say about your business, or are they too wrapped up in their own affairs? If theyre too busy to see you as a prospect, theyll be too busy to deal with you as a client.
10 The X-Factor
Q. How do you spot an accountant with a personality?
A. He looks at your shoes rather than his own when shaking hands.
Alright, were not all as bad as that. But lets face it, the stereotypical accountant is an introverted geek with poor social skills. To find one that can bring something to the party, rely on your gut instinct when making your choice; the very same instinct you use daily to make business decisions. Regardless of how clever they might be, an accountant is generally only as good as his communication skills allow him to be. So focus on that aspect: can you actually understand what your accountant is saying, and how well does he listen and respond to what you say?
