How do I pick an accountant?

[Kerwin]

I know very little about accountancy and I'm not sure what questions I should ask in order to choose an accountant. Can anyone give me some advice? I've looked in my local area but I'd be happy to do it all online so being local isn't really needed.

I'm looking for the following:

• Limited company accounts
• VAT returns
• Self assessment
• Corporation tax
• Funding advice and help

How much would I be looking at a month for these services?

 

[Ziggy2024]

There's really no correct answer to this. I would advise calling up a few different accountants and meeting them (face to face or zoom). Have a few questions prepared and then see which one you "gel" with the most. Take it from there.

You should, of course have a budget in mind but cost shouldn't determine who you choose IMO.

 

[Kerwin]

There's really no correct answer to this. I would advise calling up a few different accountants and meeting them (face to face or zoom). Have a few questions prepared and then see which one you "gel" with the most. Take it from there.

You should, of course have a budget in mind but cost shouldn't determine who you choose IMO.

Thank you very much. I'll be sure to do that.

 

[UKSBD]

Do you use bookkeeping software?

If so, are you happy with it and want to continue using it?

If so, find an accountant who is familiar with or already uses the same software.

 

[Daybooks]

I know very little about accountancy and I'm not sure what questions I should ask in order to choose an accountant. Can anyone give me some advice? I've looked in my local area but I'd be happy to do it all online so being local isn't really needed.

I'm looking for the following:

• Limited company accounts
• VAT returns
• Self assessment
• Corporation tax
• Funding advice and help

How much would I be looking at a month for these services?

One important thing to decide is whether you want to do your own bookkeeping or let them do it for you. Then decide upon frequency. If you are VAT registered then quarterly is likely to be your minimum frequency.

For your self assessment (you) and the Corporation Tax (your Company) discuss how you could minimise the taxes and maximise the take home pay, if this is an objective. Understand how you take money out of the Company in the most efficient way. Planning is important here; if you leave it too late or do it incorrectly you could have an unexpected tax bill. Funding advice needs to be explained. It is quite probable in this context that it is a regulated activity.

Your adviser will most likely not be a mind reader. Taxes often interact so communicate.

If you have already created the limited company then your duties as a director have already started. Make sure you understand them.

Make sure you get a letter of engagement and check they are regulated with an appropriate body.

Lastly and often overlooked consider preparing a budget. This can help enormously with planning and achieving your objectives.

Good luck.

 

[Baines Watson]

I know very little about accountancy and I'm not sure what questions I should ask in order to choose an accountant. Can anyone give me some advice? I've looked in my local area but I'd be happy to do it all online so being local isn't really needed.

I'm looking for the following:

• Limited company accounts
• VAT returns
• Self assessment
• Corporation tax
• Funding advice and help

How much would I be looking at a month for these services?

An accountant is like a doctor but for your financial health, the best ones make sure they help you grow your business by taking off all the admin tasks away leaving you with time to focus on the business and help you grow your wealth by advising on ways to minimize your tax bill.

Hopefully this gives you an idea of what to look for in an accountant, the way to decide would be by asking them how they will help you in the above ? At the core it is a sort of partnership where your success should be their success and their response to this question should be reflective of this value.

 

[Kerwin]

Do you use bookkeeping software?

If so, are you happy with it and want to continue using it?

If so, find an accountant who is familiar with or already uses the same software.

Thank you. I've used Xero in the past but I'm happy to learn another bit of accounting software if it would make it easier for me and the accuntant.

One important thing to decide is whether you want to do your own bookkeeping or let them do it for you. Then decide upon frequency. If you are VAT registered then quarterly is likely to be your minimum frequency.

For your self assessment (you) and the Corporation Tax (your Company) discuss how you could minimise the taxes and maximise the take home pay, if this is an objective. Understand how you take money out of the Company in the most efficient way. Planning is important here; if you leave it too late or do it incorrectly you could have an unexpected tax bill. Funding advice needs to be explained. It is quite probable in this context that it is a regulated activity.

Your adviser will most likely not be a mind reader. Taxes often interact so communicate.

If you have already created the limited company then your duties as a director have already started. Make sure you understand them.

Make sure you get a letter of engagement and check they are regulated with an appropriate body.

Lastly and often overlooked consider preparing a budget. This can help enormously with planning and achieving your objectives.

Good luck.

Ah, thank you. I think I would like them to do the bookkeeping to start with while I figure it out myself.

An accountant is like a doctor but for your financial health, the best ones make sure they help you grow your business by taking off all the admin tasks away leaving you with time to focus on the business and help you grow your wealth by advising on ways to minimize your tax bill.

Hopefully this gives you an idea of what to look for in an accountant, the way to decide would be by asking them how they will help you in the above ? At the core it is a sort of partnership where your success should be their success and their response to this question should be reflective of this value.

Thank you. That helps!

 

[WaveJumper]

Treat it like you are interviewing someone for a job ie pick someone you can work with, don't just on cost

 

[Mark T Jones]

As clichéd as is sounds, accountants are often not great communicators - which makes it extra important that you ask lots of questions and are absolutely clear on what you are getting, and what is expected of you.

Most of the 'my dreadful accountant ' posts on here are actually just communication problems.

 

[Paul Kelly ICHYB]

At the very least, pick 3 local accountants them, have a chat and choose who you feel comfortable with. This can be helped by getting recommendations or meeting people at networking sessions.

Don't forget that there will be a few good options to choose from here on UKBF, who have possible proved their worth by giving great answers!

Also, think of your accounting costs in a few ways:

1. Software - are you going to be using some?
2. Admin - are you going to enter the transactions, use technology and/or use a book keeper?
3. Advisory & Action - who will give the formal advice and do the formal filing?

To keep costs low, you do 1&2, however, you need to think about the cost of your time. If you are busy, using software (that your accountant knows) and a book keeper could be the best value.

 

[GriffithAccts]

I know very little about accountancy and I'm not sure what questions I should ask in order to choose an accountant. Can anyone give me some advice? I've looked in my local area but I'd be happy to do it all online so being local isn't really needed.

I'm looking for the following:

• Limited company accounts
• VAT returns
• Self assessment
• Corporation tax
• Funding advice and help

How much would I be looking at a month for these services?

Hi Kerwin,

Picking the right accountant is important. These days it does not need to be a local one, but also remote works.

Limited company accounts and the associated corporation tax for a basic company with little transactions starts from around £300 excluding VAT.

VAT returns can be done with the bookkeeping included, usually around £240 excluding VAT for a year. Again minimal transactions.

Self assessment should be included as if an accountant has aligned software, the SA usually takes around 10 minutes to complete.

Advice should also be included with a little buffer.

In summary for a basic limited company including annual confirmation statement and minutes of meetings, you are looking around £600+ excluding VAT.

I hope that helps,

Daniel Griffith FCA

 

[WaveJumper]

Are you able to define “little” a bit more ie is this one or two invoices a month, ten, twenty etc or based on turnover 250k, 500k

 

[GriffithAccts]

Hi WaveJumper.

A very good question. I base that more on number of transactions (20/30) sales invoices a year for example, rather than turnover. A company with 250k turnover may have large contractual invoices, and only 10 invoices, where as a smaller company just starting out may have the same amount of transactions, but far less turnover.

For me it is always work load based. I hope that helps. Have a great Sunday.

Daniel

 

[GriffithAccts]

As clichéd as is sounds, accountants are often not great communicators - which makes it extra important that you ask lots of questions and are absolutely clear on what you are getting, and what is expected of you.

Most of the 'my dreadful accountant ' posts on here are actually just communication problems.

I fully agreed. A lot of accountants are very old school. However, it depends on the background and what they have done commercially before working with clients. An ex CFO or strategist who also is a Chartered Accountant would understand the needs of customers in a much better way, than say an accountant who has just been in practice their entire career. Experience shapes change.

 

[Lisa Thomas]

Happy to recommend a few, if you don't find one from the forum. Feel free to dm me.

 

[GERAI LTD]

I know very little about accountancy and I'm not sure what questions I should ask in order to choose an accountant. Can anyone give me some advice? I've looked in my local area but I'd be happy to do it all online so being local isn't really needed.

I'm looking for the following:

• Limited company accounts
• VAT returns
• Self assessment
• Corporation tax
• Funding advice and help

How much would I be looking at a month for these services?

For which period you need all this?

What is tax residency of shareholders?

 

[Mostofa Rahman]

I know very little about accountancy and I'm not sure what questions I should ask in order to choose an accountant. Can anyone give me some advice? I've looked in my local area but I'd be happy to do it all online so being local isn't really needed.

I'm looking for the following:

• Limited company accounts
• VAT returns
• Self assessment
• Corporation tax
• Funding advice and help

How much would I be looking at a month for these services?