How to choose an accountant

[Grantd]

I've found that since using an online cloud accountancy system called 'Clear Books' I've only needed accountants for the end of year. When you have 'Sage' on a one user license, you don't really know where you are with your business so you need accountants. But the dashboard on Cleabooks gives you all the info you need.

 

[Williams lester]

I've found that since using an online cloud accountancy system called 'Clear Books' I've only needed accountants for the end of year. When you have 'Sage' on a one user license, you don't really know where you are with your business so you need accountants. But the dashboard on Cleabooks gives you all the info you need.

Only if you know what figures you should be putting into the accounts!

We have trialled clear books and found it fairly average, nowhere near as good a product as Accounts Portal (www.accountsportal.com).

 

[autoreg]

Thanks for this interesting information. Really helpful

 

[ghaffar795]

If you are going to select a accountant then you must follow the two main things. First is Accounting degree and second one is Relevant experience.

 

[E Storey]

If you are going to select a accountant then you must follow the two main things. First is Accounting degree and second one is Relevant experience.

An accounting degree is not the same as a professional accounting qualification from an accounting body.

 

[Bob]

If you are going to select a accountant then you must follow the two main things. First is Accounting degree and second one is Relevant experience.

Have to agree with E Storey. The last thing you want is an accounting degree Relevant experience and a professional qualification - now that's a different matter

 

[Eric80]

How to go about selecting the right accountant for your business is a common question asked on UK Business Forums. The answers are contained in Bagging a bean-counter: Getting the right accountant every time, an article on BusinessZone.co.uk, UKBF's sister website. I have made this post a sticky on the suggestion of Kent Accountant.

Thank you very much for this valuable resources. I'm not looking for a accountant actually, this resources is helping me to point out the main things in accountant, that I'm using to grow myself in this field. I appreciate it. Thank you again.

 

[pataktradingpartners]

To Choose an accountant for small businesses and firms depends upon the requirements and necesscity of the business. All the factors are being decided by the authority.

 

[ashbarrett]

I would recommend using sage. you can get a lot of information from business forums and the governments website on what you can and cant do. Just get someone in at year end to overlook everything and make sure you are on the right tracks. Basic double entry would be a good course to look at though.

Ashbarrett
(Debtcollectorsonline) Barrett Brown Ltd.

 

[Naweed Riaz]

If they have good ACCA qualifications then you should have no problems, basic stuff an AAT Technician works out cheaper.

 

[Dakini]

It's very simple, just ask any prospective accountant the following:

"What is 1+1?"

If they answer "2", run for the door.

If they answer "what do you want it to be?" you have found the right person.

although I'm not sure it would be legal?

 

[David Berry]

In recent years the internet has changed everything. There used to be two type of accountants - those in practice commonly termed chartered accountants and those in business commonly termed management accountants.

Management accountants are part of your business - they add value. However, until very recently they could only be recruited by medium and large companies as small companies simply can't afford the daily cost of having a qualified accountant on their headcount.

That's all changed in recent years, small companies can now afford to have a virtual management accountant. Via a secure Internet link I can now advise and produce the books, reports and analysis for my clients. They benefit as they pay on a task or hourly basis but have someone full time "in" the business. I can talk to them any time of the day. I benefit as I can work for small companies and see them grow. It also saves you having to choose who to sign off your books as you have an accountant in the business who does all that.

It is a real opportunity for small businesses and start-ups.

 

[internetspaceships]

Hmm the kind of accountant you need is sadly the kind of accountant you rarely find.

You need an accountant who is willing to work with and for you. You pay their fees and they provide you with services. It's not the other way around.

You need an account who talks in plain english. Those that hide behind jargon and don't take into account their clients' level of understanding shouldn't be considered.

Does your prospective accountant look you in the eye whilst talking to you? Does he or she have a firm handshake? (old adage but still valid because you need them to be at your back when the sh*t hits the fan)

Does your accountant have other business interests? Can they demonstrate the ability to run a company and do they have business skills or just book keeping skills? An accountant with a business head is far more effective than a bean counter. After all, you run a company don't you?

Sadly accountants with a business head are far and few between.

Does your prospective accountant take time to listen to what YOU want from your company. Is he/she genuinely interested in you or are you just another account? (No pun intended)

Is he/she looking to steer and guide you to achieving your dreams in the most legally tax efficient way possible? That's a double edged sword because there is a happy medium regarding tax mitigation. Too much leaning either way is just as bad as the other.

Is he/she happy to have a couple of short meetings per annum as part of the fee, to monitor progress and make sure you're on track?

Overall, remember the accountant is employed by you. They are their to guide you through the paperwork and tax calculations you need to complete in order to meet your taxation and reporting obligations.

Work in partnership with and accountant but remember you are the senior partner in this arrangement. Not them. Get that fundemental basis sorted out and work with mutual respect.

 

[bettersales]

The most important thing to consider when looking to choose an accountant is their qualifications. There are many states that require their accountants to become certified before operating a business, but there are others that do not regulate the way that accountants operate. A certified public accountant (CPA) is often a professional individual who was trained and has a large amount of accounting experience. Many certified public accountants charge more for their services, but at the same time they often offer better results.

 

[MyAccountantOnline]

The most important thing to consider when looking to choose an accountant is their qualifications. There are many states that require their accountants to become certified before operating a business, but there are others that do not regulate the way that accountants operate. A certified public accountant (CPA) is often a professional individual who was trained and has a large amount of accounting experience. Many certified public accountants charge more for their services, but at the same time they often offer better results.

Would you not consider qualification and relevant experience are essential qualities? I certainly would.

CPA's are also not the primary professional body for accountants in the UK - here we have various Chartered bodies.

 

[elaine@cheapaccounting]

CPAs is used in the US.

For the UK I would suggest that these are the main professional bodies ...

• Association of Accounting Technicians (MAAT)
• Association of Chartered Certified Accountants (ACCA or FCCA)
• Institute of Chartered Accountants in England & Wales (ACA or FCA)
• Institute of Chartered Accountants of Scotland (CA)
• Institute of Chartered Accountants in Ireland (ICAI)
• Chartered Institute of Management Accountants (ACMA or FCMA)
• Chartered Institute of Public Finance and Accountancy (CPFA)
• Association of International Accountants (AIAA or FAIA)

Others may of course exist.

 

[colindavison]

I suggest people look for someone using the icaewmembers site. We have found by people searching on property investment as their chosen specialisation requirement they get more focussed attention.

NOt all accountants are the same, now people want to get the best specialist for their own business and Cranleys comes out well in property as well as professional services.

 

[internetspaceships]

The most important thing to consider when looking to choose an accountant is their qualifications. There are many states that require their accountants to become certified before operating a business, but there are others that do not regulate the way that accountants operate. A certified public accountant (CPA) is often a professional individual who was trained and has a large amount of accounting experience. Many certified public accountants charge more for their services, but at the same time they often offer better results.

I have to disagree. Well qualified is just a starting point. It's what they can actually do that sets a good accountant apart from an average one.

Does passing your driving test automatically make you a good driver? No, that's when you really start learning to drive.

 

[yackers1]

Having worked for a large firm of accountants and a small firm, I would opt for a smaller firm every time, providing they are qualified and regulated by a professional body that is.

In addition, I would also seek to ensure that all the services you need are provided. The role of the accountant has changed from the compliance stuff (i.e. year end accounts and tax) and the accountant needs to be more of a business adviser to help busiensses (and their owners) grow and develop. the range of services should be far more reaching.....

 

[commadus]

CPAs is used in the US.

For the UK I would suggest that these are the main professional bodies ...

• Association of Accounting Technicians (MAAT)
• Association of Chartered Certified Accountants (ACCA or FCCA)
• Institute of Chartered Accountants in England & Wales (ACA or FCA)
• Institute of Chartered Accountants of Scotland (CA)
• Institute of Chartered Accountants in Ireland (ICAI)
• Chartered Institute of Management Accountants (ACMA or FCMA)
• Chartered Institute of Public Finance and Accountancy (CPFA)
• Association of International Accountants (AIAA or FAIA)

Others may of course exist.

I have come across http://en.wikipedia.org/wiki/Institute_of_Financial_Accountants IFA and CFA - are they both accountants?

 

[elaine@cheapaccounting]

I have come across http://en.wikipedia.org/wiki/Institute_of_Financial_Accountants IFA and CFA - are they both accountants?

They are not part of the CCAB ...

http://www.ccab.org.uk/

 

[TaraImpact]

Don't forget to make sure you have an accountant employment contract when you eventually do find your perfect accountant. It's really important these days.

 

[Wild Goose]

What's an "accountant employment contract" and why is it important?

If you hire an accountant you're unlikely to be employing him. Why would you want an employment contract?

This thread's fast turning into a Monty Python Sketch. I think I'll start a new thread with something completely different: "Ten things to avoid when hiring an accountant".

 

[elaine@cheapaccounting]

Don't forget to make sure you have an accountant employment contract when you eventually do find your perfect accountant. It's really important these days.

as an accountant in practice is not your employer then I fail to see how you will have one of these

 

[MyAccountantOnline]

Don't forget to make sure you have an accountant employment contract when you eventually do find your perfect accountant. It's really important these days.

I think you may mean a letter of engagement

 

[InPrintImaging]

It's very simple, just ask any prospective accountant the following:

"What is 1+1?"

If they answer "2", run for the door.

If they answer "what do you want it to be?" you have found the right person.

If you came looking for an answer like that, I'd run for the door with my potential fraud alarm bells ringing.

Trouble like that I neither need or want.

fpdbookkeeping.co.uk

 

[InPrintImaging]

Don't forget to make sure you have an accountant employment contract when you eventually do find your perfect accountant. It's really important these days.

Practice accountants are contractors not employees. If you were a large(r) size of business (say £3 or £4 million turnover) you might employ a management accountant, but you would never put a practice accountant on the payroll.

As someone else said, the term is "engagement letter" and is basically a support contract containing the terms and conditions under which they provide services to you.

 

[thetime22]

Go with someone that has a solid reputation.

 

[nevile]

Lots of information for choosing the well qualified accountant.

 

[mrlocks]

Fixed fees are a must in our opinion but what is not mentioned enough is what else someone you trust and respect can help you with.

A good accountant understands the drivers in any business and if they are your accountant will understand yours very well. They will be able to advise on a range of commercial issues that could benefit any business. This however depends on the individual and if they are personable and you are happy taking advice from them. The only way to find out is sitting down and having a chat.

Cheers

yeah thats true, an accountant will understand the whole business and able to provide good advice on commercial issues.

 

[Fürgefutár.hu]

Accountants are competing hard for business. Most charge flat rates. Go by personal recomendation rather than price

 

[DeanCo]

I have dealings with some of the larger companies and you seem to get better advice from smaller family run business's. While the larger accountantacy practices seem to concentrate on completing tax returns in bulk rather than advising clients on how to improve their business and saving tax.

Keith Dean
Dean & Company
deanco.co.uk

 

[DeanCo]

I have had dealings with some of the larger companies and you seem to get better advice from smaller family run business's. While the larger accountantacy practices seem to concentrate on completing tax returns in bulk rather than advising clients on how to improve their business and saving tax.

Keith Dean
Dean & Company
deanco.co.uk

 

[apacarada]

Recently we have written a blog on how to chose an accountant which is also published here in UKBF

 

[accounting-help]

We've actually written an article about navigating the minefield of choosing an accountant. Here is a cut-down version. Check out the news section of our site if you want to read the whole article:

[FONT=&quot]The first thing to remember that accounting firms are all different![/FONT][FONT=&quot]
[/FONT]
[FONT=&quot]Each firm will have a different style, offer different services, have expertise in different sectors and have different strengths and weaknesses: just like any other business.[/FONT]

[FONT=&quot]Accountants can also provide a wide range of services from basic bookkeeping to specialist business advice. Some offer a full service, whilst others only focus on a narrow range or may be specialists in one particular industry.[/FONT]

[FONT=&quot]It’s vital that you choose an accountant who’s right for both you and your business: it’s also not only about your immediate needs, but if your business is going to grow, your accountant needs to able to help you get there. [/FONT][FONT=&quot]
[/FONT]
[FONT=&quot]Initial Selection:
[/FONT] [FONT=&quot]Put together a shortlist of three or four accountancy firms. The easiest way of doing this is to ask business colleagues, members of your online/offline business, suppliers, customers and even friends and family.[/FONT]

[FONT=&quot]What to Ask:[/FONT]
[FONT=&quot]Experience: [/FONT] [FONT=&quot]Does the accountant have clients in your sector and experience of businesses of a similar size and can they deal with your business' unique needs? It’s also worth finding out about their professional qualifications, background and expertise.[/FONT][FONT=&quot]
[/FONT]
[FONT=&quot]Charges: [/FONT] [FONT=&quot]Few people like asking about fees and costs, but it’s vital that you understand how your proposed accountant will charge – right from the outset.
[/FONT]
[FONT=&quot]People: [/FONT] [FONT=&quot]It’s important to find out who will be handling your business on a day-to-day basis – will it be a partner or someone more junior.
[/FONT]
[FONT=&quot]Communication and Service: [/FONT] [FONT=&quot]You will be sharing some of your most important information about your business with your accountant, so this is an ideal opportunity to find out about how they propose to work with you - and you with them.
[/FONT]
[FONT=&quot]Added Value[/FONT] [FONT=&quot]: At this stage, you may only want a simple service, but as your business expands you will need access to additional services. So ask about the additional services they offer? For example, inheritance planning, advice on IT, accounting systems, starting a business or a stock market listing.[/FONT]

[FONT=&quot]Business Advice[/FONT] [FONT=&quot]: Not all accountants offer business advice, so check that if they do! Find out what’s on offer and how they provide it (face-to-face, online, etc)[/FONT]

[FONT=&quot]Access to Information[/FONT] [FONT=&quot]: You might need information to update your business plan or to prepare tender document so check the level of access you will have to data that your accountant holds about your business. Check too, the accounting systems they use and whether they will support the ones you currently – or plan – to use.[/FONT]

[FONT=&quot]References![/FONT] [FONT=&quot] Last, but certainly not least! It’s vital that you get other clients’ views of the practice to see if what you’ve been told is accurate. A good accountant should also be happy to pass on names of clients for you to take up references.[/FONT][FONT=&quot]
[/FONT]
[FONT=&quot]What Information Will They Need?[/FONT] [FONT=&quot] Any potential accountant should want to know as much about you as you do about them. If you can take as much information as possible about your business, it will help both of you during your meeting.[/FONT]

[FONT=&quot]Remember, it’s a two-way conversation – you both want to get something from the meeting. The following information will be useful at your first meeting – this is a guide, not a necessity and as young business, you may not be able to provide all these items:[/FONT]

• [FONT=&quot]Background about you and your business[/FONT]
• [FONT=&quot]Your business plan[/FONT]
• [FONT=&quot]Last set of accounts[/FONT]
• [FONT=&quot]Accounting software you use or would like to use[/FONT]
• [FONT=&quot]What you are looking for from an accountant[/FONT]
• [FONT=&quot]Specific services[/FONT]
• [FONT=&quot]Other support that you may require[/FONT]
• [FONT=&quot]Specific concerns or issues you may have[/FONT]
• [FONT=&quot]Timescale for any work you require [/FONT]

 

[merchantcash]

1) Investigate and, if possible, choose an accountant before you start your business.
2) Make sure your accountant is fully qualified, for example as a certified or chartered accountant. Most likely, these qualifications will be displayed on any promotional material or the company's website, otherwise make sure you ask.
3) It is essential that your accountant works with small business clients. If your business generates a large number of transactions (for example, an online shopping service), make sure the accountant has experience with dealing with companies in your sector if possible.
4) How much does the accountant charge? Is there a fixed annual or monthly fee to complete all business tax requirements, or do hourly fees apply? Compare the fees of several firms.
5) When you first meet a prospective accountant, you will know soon enough if you see eye-to-eye. It is important to develop a good relationship and know that your finances are being handled by someone you trust. You should contact at least 3 accountants and find out which one best meets your requirements.
6) What other services does the accountant provide - can they complete your self assessment returns?, do they provide business advice or further information to help grown your business?
7) As a small business, we find that the best accountants are also likely to be smaller in size. They will understand what it's like running a small operation and will have the resources and time you require to fun your finances properly.
8) Ask to speak to existing clients before signing up. A decent accountancy firm should be happy to arrange this.
9) Make sure your accountant keeps in touch with your business - not just at year end! If you feel your current accountant no longer meets your requirements for whatever reason, get a new one!
10) If at some stage you decide to sell your business, you will need a good accountant more than ever to minimise any tax liabilities payable on the sale.

 

[targetinthebox]

How much does the accountant charge?

 

[accounting-help]

Like everthing it varies.

We put our prices on our website so check them out to gauge an idea of what various services cost.

 

[elaine@cheapaccounting]

can you put the sources of your research for info please - thanks

 

[Wild Goose]

More research when clients are asked what things they would tell an accountant setting up a new practise:

Eamon, it's practice with a "c". "Practise" is the verb, "practice" the noun. So many accountants don't seem to know whether they're in practice or in practise. And I chuckle whenever I see one describe themselves as a "proffesional". Who'd hire them, dyslexics excepted?