How to choose an accountant

[Digital Investments]

After meeting with a few accountants, I actually decided on mine based on his mindset, rather than skills.

I'm very entrepreneurial, a trait shared with my accountant. When first started I interviewed several accountants and although they had come recommended, I wasn't thinking on the same level as most of them. One small business accountant told me to slow down when I started asking about VAT and higher tax brackets, I then reliased why his practice was a long time in growth, and why practically all his clients were turning over less than £50,000 a year, even though he offered services up to £250,000 a year. Becoming slightly philosophical, you attract what you are.

Even though my accountant and I are very different people, and half the time I struggle to digest what he is telling me because his communications are far from great, as are my skills with numbers, we work very well together because we both share dynamics and a passion for business, and thanks to my accountant, I have seen great growth in my company

 

[DeanCo]

One of the most important business advisors to have is an accountant. You have more time to deal with your business if you have an updated good accountant.

Being behind with a mountain of paperwork is quite stressful and trusting your accountant can be to your advantage. The following are some tips on choosing a suitable accountant:

1) Choose a suitable accountant before your business trades.

2) Ensure that your accountant accepts small business's. If your business produces significant numbers of transactions (such as online shopping etc) ensure that the accountant has is ok with this type of thing.

3) What are their accountants fees? Do they charge annually/quarterly/monthly/hourly? Compare many different companies.

4) You should contact several accountants to discuss your requirments and and find out which is most appropriate.

5) What range of services do the accountant have. Will the accountant work with annual accounts and tax returns only or provide a wide range of services and advice to help you be more tax efficient.

6) Some of the most suitable accountants are small or medium size companies. They will understand more about what running a small company is all about. The larger companies usually concentrate on doing tax returns in bulk rather than giving good advice.

7) Should your present accountant be inappropriate, for any reason, get a another one!

8) If you wish to change your trading structure i.e. from sole trader to limited company or you wish to sell your business you will need a good accountant to deal with all the paperwork more than ever.

 

[Digital Investments]

Many entrepreneurs who launch their own businesses start out by wearing the accountant's hat and doing your own taxes, in addition to doing just about everything else in the business, too. It's become easier for a layperson to keep track of a business' finance with the advent of simple bookkeeping software, such as Quick Books, quicken and Microsoft office Small Business Accounting. But there comes a time in a growing enterprise when it makes sense to hand over responsibilities for taxes, accounting, and the rest of the financial functions to specialists.

I'm a great believer in knowing and focusing on ones strengths - and that applies both at a personal and business level.

Why waste time trying to do something you are clearly not very good at and have zero natural ability, when there are a world of experts wanting to do these jobs, and being very capable at doing them. Yes, money can be an obstacle, especially at the start up stage, but finding the money to pay an expert for his/her services is a FAR SMALLER obstacle than trying to do these tasks i.e tax and VAT yourself and making a complete mess of it, while wasting considerable amounts of time taht could have been better spent in making money to pay for these services.

Focus on strengths and compensate on weaknesses by using other peoples strengths.

It's all about working smart

 

[ReallyWildOne]

Agreed totally. It's better to pay someone and get it right, rather than try to save a little and end up making a hash of it.

Besides, your time is better spent on the things you are good at!

 

[Cruncher42]

It really depends what you want from the relationship.

If all you want is annual accounts and a tax return there are some very cheap options available. If you need some advice and support along with the basics, then you should meet with them. A really good guide is time and trouble the spend in working out what right for you. The larger the practice, the more impersonal the service tends to be.

I would agree that fixed fees are highly preferable.

 

[KF_Researcher]

It really depends what you want from the relationship.

If all you want is annual accounts and a tax return there are some very cheap options available. If you need some advice and support along with the basics, then you should meet with them. A really good guide is time and trouble the spend in working out what right for you. The larger the practice, the more impersonal the service tends to be.

I would agree that fixed fees are highly preferable.

Nicely said; just remember that people that fail their exams can still call themselves accountants; "chartered" is the restricted word so make sure you're getting the right type of person!

 

[bogdanbridgewest]

a list of bad accountants would be very interesting

 

[bogdanbridgewest]

unless is somewhere around here and i can't see it

 

[BillSmith]

In my opinion, it is hard to find a good accountant who can actually understand the complex accounting system. You should choose the person who solves a problem which you don't know how to solve and you do not understand it.

 

[weknowmoney]

Very informative , thanks for posting it .

 

[accounting-help]

This is a link on why accounting is important for a business. I know its a little off topic but hopefully is useful for some.

http://www.articlelogy.com/business/accounting/accounting-why-is-it-important-for-a-business.html

 

[gilchrist]

The links are very informative about selecting an accountant. Thanks for posting.

 

[mauahmed]

Hi

I believe the basic is accountants got to be registered with HMRC as agents, and should have professional indemnity covers for the businesses they are running. You do not have to be a mouthfull to serve small business communities. There are thousands of accountants in the market who do not have any formal memberships with so called mouthful membership bodies but they are well qualified by experiences. I know many qualified accountants who just rely on their less paid younger staffs due to recent changes in filing systems with HMRC and Companies House. Hats off for them.

 

[Jeremiah@RHJ Accountants]

It is very important to choose an accountant that can help you maximise the most from your company and pay as little tax as legally possible.

Also make sure that your accountant is regulated by a professional governing body like ICAEW or ACCA etc

So if you Accountant chartered it at least shows they have to maintain the standards of that professional body.

Any one can call them selves an accountant but not everyone can say they are chartered.

Price is not everything as a good accountant will save you money in the long run.


Find an accountant that has a personal service as there is nothing more worse than being passed to every Tom, Dick and Harry in the office when you call or e-mail.

If you are looking for an accountant call a few and see which one best fits our needs

This is the general feeling i have from the clients i act for at my firm Smith Craven Chartered Accountants

Hope this helps anyone

 

We advise accountants on practice growth and how to market themselves to new clients. An area we stress that they should shout about is that they are business orientated. Any properly qualified accountant will have the necessary skills and know-how , but regrettably many see themselves in a traditional light and are not pro-active enough in advising their clients on all aspects of business.

Ask any potential firm what sort of business advice they give and ask for recent examples. If they are not going to give you proactive advice then find one who will. Don't just rely on recommendation , as the person you ask may be satisfied with a basic tax return and accounts prep service.


Only go for an ACCA , ICAS or ICAEW qualified

 

Remember , that it isn't all about fees.

You get what you pay for !

Good advice is worth every penny

 

[GBoffices]

We found ours at a local village fayre. He was human, with a family and normal, even smiling when it wasn't time to complete a tax return! Many/most are very similar and do very similar work. I suggest you find someone who's a tax specialist so you can plan forward rather than backwards, but also find somebody who has some personality. To get the best out of the relationship, you need to reveal everything to them so will want to feel comfortable with them. Happy hunting

 

[nikkisizer]

We found ours at a local village fayre. He was human, with a family and normal, even smiling when it wasn't time to complete a tax return! Many/most are very similar and do very similar work. I suggest you find someone who's a tax specialist so you can plan forward rather than backwards, but also find somebody who has some personality. To get the best out of the relationship, you need to reveal everything to them so will want to feel comfortable with them. Happy hunting

Well said GBoffices

 

[PPLEE]

I know from 1st hand experience that this is a vital aspect of any business if they want to trade legally and without falling foul of the revenue.

We chose our accountant because he was a nice guy and his dad was a well known local accountant. Unfortunately, just 1 month after choosing his firm his dad retired and his son took over all of his clients and whilst he didn't give us incorrect advice, we would have to ask him about everything and as a complete novice, I needed him to guide us because all he kept saying was, 'it's up to you' whenever i asked about a course of action!

He is still acting for us but we are looking for a new accountant now.

 

We would happy to have a chat with you without obligation

Whoever you end up using you want somebody who is proactive - don't be scared to ask how they operate

 

[offshoreaccouting]

A excellent accountants recognizes the individuals in any company and if they are your accountants will comprehend yours very well. They will be able to recommend on a variety of professional concerns that could advantage any company. This however will depend on the person and if they are friendly and you are satisfied getting guidance from them. The only way to discover out is being seated and having a discussion.

 

[FreelanceScribbler]

Is it better to go with an individual accountant or an actually accounting company?

 

[EliteIan]

I would suggest the following would help when choosing an accountant:

• Call Whenever You Need. Get an accountant who you can call whenever you need help and advice, without fear of being charged every time you make a phone call.
• Understanding. Get an accountant you can speak to openly and honestly who understands what you are saying and who you understand.
• Commercial Awareness. Talk to them about your business and your ideas and see how commercial they are. Do they understand your business?
• Will Visit You. Ask them if they will visit you for an initial consultation free of charge. Why do you have to spend time travelling, find parking and wait around for them when they are the one trying to get your business?
• Gives Tax Ideas. Ask them what tax ideas they have for you. You want an accountant who will pro-actively come up with regular new ideas.
• Prepare for Meetings. Make sure you prepare for any meetings you have with them and let them know beforehand what you want answers to.
• Use of Email. Ask if they communicate by email as it speeds up service and saves costs.
• Fixed Fees. Make sure you get a fixed fee wherever possible for your work. If not, get a fee they won't go beyond without your agreement. Don't worry about hourly rates, it's the value of what you get that matters and the more experienced accountants with higher hourly rates can do the work a lot more quickly and efficiently anyway.
• View their Website. To see how pro-active they are and what they offer to clients. If they don't even have one for you to find out more about them or it's a very poor website what does that say about the service you're then likely to receive.
• Quick Response. Make an enquiry and see how quickly they respond. If they aren't fast now when trying to get your business, what will they be like when they act for you?
• Who Will You Deal With? Find out who you will be dealing with in the firm or will you be passed around lots of different people?
• What Services are Offered? Find out if they offer all the services you need and are likely to need in the future?
• Fixed Timescales. Agree fixed timescales by when work will be done and get them to guarantee it.
• Existing Clients. Ask to speak with some of their clients to see what they say about them.
• Engagement Letter. Ask for a copy of their engagement letter and make sure everything you need is included and make sure they keep to what they are to do.
• Listen or Talk and Take Action? Do they listen to you or mostly talk at you? You want an accountant who takes a real interest in you and your business and takes action on what you need. If not, lose them, lose them quick!

Ian Gargett
Elite Financial Accounting LLP

 

[Nashtrump]

Would agree with Elite Ian here,

I have clients would prefer working with me as opposed to large accountancy practise.... again I've had (obviously past tence!) that much prefer the larger accountants as they feel more 'Corporate'.

Really is just a question of how personal the accountant is and what service you are looking for.

If you are happy with the accountant then that accountant is better for you, whether individual or a large firm!

 

[Nashtrump]

Unfortunately we aren't allowed to price it up or sell on here.
If you do want to speak to one of the accountant firms like us you could always private message so it stays off the forums.

 

[Jeremiah@RHJ Accountants]

Any price/quality good one in London?

Thanks,
Otmane EL RHAZI.

My advice always go for a firm that offers the best service for you. so why not contact a few and see what they offer and if it is what you need and at a reasonable price.

Jeremiah Jordan
Smith Craven Chartered Accountants

 

[MissClearBooks]

Using online accounting directories like Find-UK-Accountant or Choose-Your-Accountant are really good ways to find accountants in your local area. You can search by postcode/area location. The good accountants tend to list their services, qualifications and rates. You can usually link through to their websites - or find their contact details on their listings.

What's more is these websites offer you the opportunity to advertise exactly what it is you are looking for in an accountant. Shoddy accountants need not apply

 

[Philip Hoyle]

Using online accounting directories like Find-UK-Accountant or Choose-Your-Accountant are really good ways to find accountants in your local area. You can search by postcode/area location. The good accountants tend to list their services, qualifications and rates. You can usually link through to their websites - or find their contact details on their listings.

What's more is these websites offer you the opportunity to advertise exactly what it is you are looking for in an accountant. Shoddy accountants need not apply

But it's still "buyer beware" as sites like these don't "vet" the firms that advertise on their directories.

You have to talk to a few accountants to get a feel as to how well you relate to eachother and to ensure that the accountant is right for you.

You should do your own research to check that your selected accountant is properly regulated by a professional body and carries insurance in case of foul ups. Don't be afraid to ask for references or to speak to existing clients.

The best way to find an accountant is a referral from friend or relative who is already a client. Referrals from bank managers, IFAs etc are fairly meaningless as they probably won't be using the accountant themselves for the services you need.

 

[hubertmcintosh]

You have your thoughts already on how to find an accountant. As I've read all the posts here, there are good and amazing replies. This is only one thing I would say, hope right now you found an accountant which is really helps you on your business because it is not an easy thing to do so hard to find a right one.

 

[Wild Goose]

I would suggest the following would help when choosing an accountant:

• Call Whenever You Need. Get an accountant who you can call whenever you need help and advice, without fear of being charged every time you make a phone call.
  

Ian Gargett
Elite Financial Accounting LLP

There's a growing school of thought that any accountant who doesn't know enough to charge something for their services doesn't know enough to be a help to your business.

 

[elaine@cheapaccounting]

There's a growing school of thought that any accountant who doesn't know enough to charge something for their services doesn't know enough to be a help to your business.

I haven't found this school - where is it please

 

[Bob]

I haven't found this school - where is it please

... present company excepted of course

 

[elaine@cheapaccounting]

... present company excepted of course

Thank you - but I do expect that there are other accountants who have adopted new technology, re-engineered process, made costs savings and have passed these onto clients on the form of affordable fees.


The new opportunities that technology brings are brilliant for both the accountant and the client.

 

[Bob]

Thank you - but I do expect that there are other accountants who have adopted new technology, re-engineered process, made costs savings and have passed these onto clients on the form of affordable fees.


The new opportunities that technology brings are brilliant for both the accountant and the client.

I'm so pleased I've retired ....................

 

[elaine@cheapaccounting]

I'm so pleased I've retired ....................

why - you must have seen lots of changes in your career Bob. Many of them a challenge e.g. VAT, imperial to decimal (was that too early?), self assessment ....

Mind you I think even debit / credit preceded you

 

[David Griffiths]

There's a growing school of thought that any accountant who doesn't know enough to charge something for their services doesn't know enough to be a help to your business.

Many firms these days offer essentially unlimited telephone support within the remit of the original engagement. If the call then leads to a request for extra work, that can be agreed in advance of carrying it out.

That way the client doesn't get an unexpected bill, and is not afraid to call with a query. Not only does that help to prevent the situation where you only find out that the client has done something after the year end (i.e. Accountant (slaps forehead) why didn't you tell me? Client; I was afraid I'd get charged) but the more contact there is, the better the relationship.

I've never had any issue with clients when the call clearly required extra work that was chargeable. I've also never had a problem with clients phoning every five minutes - they have better things to do with their own time. I did have one who called me five times in the first week that we acted simply because he could! He couldn't believe how easy it was to speak to us, compared with a bad experience with the previous accountant! Needless to say the novelty soon wore off.

 

[Bob]

why - you must have seen lots of changes in your career Bob. Many of them a challenge e.g. VAT, imperial to decimal (was that too early?), self assessment ....

Mind you I think even debit / credit preceded you

Yep all of those. Purchase tax replaced by a simple tax - VAT I was actually working for National Provincial Bank when we had decimalisation. Self assessment is no fun .. we used to go to the General Commissioners every month for delay cases. Don't forget Surtax at 98% and the Special Charge in 1968 which resulted in your paying more than 100% tax on the top slice of your investment income Don't know why everyone complains about 50%
Debits and credits have changed. In my day debits were near the door and credits near the window

 

[Wild Goose]

I haven't found this school - where is it please

Hi Elaine: its masters are the disciples of the Value Pricing School ("The Professional's Guide to Value Pricing", Ronald J. Baker, 6th Ed 2005, CCH Incorporated Chicago).

Many firms these days offer essentially unlimited telephone support within the remit of the original engagement. If the call then leads to a request for extra work, that can be agreed in advance of carrying it out.

Hi David: Nothing wrong with that - you are indeed encouraging sales enquiries that way. The quote I was commenting on carried for me the inmplication that the [mythical] accountant would not just field the phone call for free but also solve the client's problem for free. viz:

Call Whenever You Need. Get an accountant who you can call whenever you need help and advice, without fear of being charged every time you make a phone call.

That's what I inferred, anyhow: that, according to the writer, you should call your accountant for help and advice without fear of being charged - not just for the phone call but also for the advice. At the very least, the extract is ambiguous.

My comment was designed to provoke thought: would anyone really want to take advice on how to run their business from a philanthropist? Like Bob, I remember the Beatles giving away free clothes in their Apple shop in order to avoid supertax; but in more ordinary circumstances charging nothing at all for one's goods or services is not viable. In Baker's Value Pricing book there is a clear message that, whilst discussing clients' issues for free is all well and good, solving their problem for free is not. I believe there are a number of accountants out there who don't always make that distiction.

 

[elaine@cheapaccounting]

Hi Elaine: its masters are the disciples of the Value Pricing School ("The Professional's Guide to Value Pricing", Ronald J. Baker, 6th Ed 2005, CCH Incorporated Chicago).

Happy reading

Me - haven't got time to read books on it. I'm more of a JFDI type person and I guess it all seems to be working very well so far. Five years in and growing year on year - must be doing something (a lot) right

 

[elaine@cheapaccounting]

Debits and credits have changed. In my day debits were near the door and credits near the window

Always a pain when you move desks

My first memory was the calculator AKA adding machine with the till roll and handle - I blame that adding machine for my right bicep