How to look for a chartered accountant

[claret_n_Blue]

Hi all,

I'm a 25yr old young entrepreneur, about to end my first year running my own business. Been an exciting year for me and my Ltd company but it appears that I missed one huge aspect and need to have some accounts done!

I own a retail business, a convenience store trading in a variety of goods, food, tobacco etc.

I was wandering if people could give me any tips/advice on finding a good chartered accountant?

I am looking for things like, how much should I pay, is there anything I should expect from them, can I reduce the cost by doing certain things myself, etc etc.

Any other comments/suggestions/advice etc regarding anything accountancy based for my business would be very much appreciated!

Many thanks all

 

[STDFR33]

You can find a chartered accountant here:
https://www.icaew.com/en/about-icaew/find-a-chartered-accountant

Though there are accountants that belong to other professional bodies such as CIMA, ACCA, AAT, IFA, and others that are qualified by experience.

You will save money by doing your bookkeeping using proper software.

For a competent accountant, you will be looking at £800+ depending on how good your records are.

 

[claret_n_Blue]

You will save money by doing your bookkeeping using proper software.

What do you mean by book keeping?

This is another bit I was confused on. If I write up all my daily takings etc myself, what exactly does the chartered accountant do? How can he sign off everything I send him without checking it and doing what I spent all year doing?

Also, why would I need special software? Can I just not calculate it myself using excel or something?

Apologies if these are very basic questions, I've never actually had anyone tell me how these things work and so I'm trying to learn it all myself!

 

[STDFR33]

What do you mean by book keeping?

This is another bit I was confused on. If I write up all my daily takings etc myself, what exactly does the chartered accountant do? How can he sign off everything I send him without checking it and doing what I spent all year doing?

Also, why would I need special software? Can I just not calculate it myself using excel or something?

Apologies if these are very basic questions, I've never actually had anyone tell me how these things work and so I'm trying to learn it all myself!

Entering sales and purchase invoices into a record system.

You could use excel, but it isn't ideal for bookkeeping - especially when there is free software available.

An accountant will do all the necessary adjustments (accruals, prepayments etc) so that your accounts and tax return complies with all relevant laws.

 

[Energise Accounting]

It is difficult to say how much an accountant will charge. I would look at getting the books up to date on some software this will help reduce your fees. Have a chat with Nicola @MyAccountantOnline as using a online accountant will be a cheaper option.

 

[MyAccountantOnline]

It is difficult to say how much an accountant will charge. I would look at getting the books up to date on some software this will help reduce your fees. Have a chat with Nicola @MyAccountantOnline as using a online accountant will be a cheaper option.

Thank you very much Energise Accounting

 

[MyAccountantOnline]

What do you mean by book keeping?

This is another bit I was confused on. If I write up all my daily takings etc myself, what exactly does the chartered accountant do? How can he sign off everything I send him without checking it and doing what I spent all year doing?

Also, why would I need special software? Can I just not calculate it myself using excel or something?

Apologies if these are very basic questions, I've never actually had anyone tell me how these things work and so I'm trying to learn it all myself!

Never apologise for asking questions its only by doing that do we learn.

Bookkeeping is the process of recording you company income and expenditure. Its an essential part of running your business. It is only by having accurate and complete records can you monitor your business, and for a limited company see what dividends you can draw etc. Using good dedicated software will make it quicker and easier to maintain your records and enable you to produce at the touch of a button reports you can use to run your business.

Bookkeeping is something you can do yourself or get a bookkeeper or accountant to do.

Accounting is the bit you need a good accountant for he/she will use your records to prepare the statutory accounts and tax return but also make sure you are taking advantage of all tax savings and make sure all tax requirements are dealt with. A good accountant will ensure you pay no more in tax than you legally have to and you will probably be surprised at the tax savings they can help you with.

If you want to contact me direct I'll be happy to help.

 

[Ian J]

I was wandering if people could give me any tips/advice on finding a good chartered accountant?

Local is best if at all possible and the best way to find a good local accountant is to get a recommendation from a friend or relative who uses one.

 

[MyAccountantOnline]

Local is best if at all possible .....

I don't agree, although I'm clearly bias.

Online does actually work really well for those that like to work in that way, and many do. It obviously doesn't suit everyone, and anyone looking for an accountant has lots of choice.

Years ago we'd never imagine using a bank we'd never visit, and having a bank manager we'd never see, but lots of us do now. I actually cant remember the last time I visited my bank or met my manager.

 

[NRLtd]

This is another bit I was confused on. If I write up all my daily takings etc myself, what exactly does the chartered accountant do? How can he sign off everything I send him without checking it and doing what I spent all year doing?

An accountant doesn't "sign off" company accounts, there is no need for any external check or verification unless the company needs a statutory audit (which will be dependant on turnover, asset values and employee numbers). In any case, the accounts are the responsibility of the director/s and they sign the accounts, an audit report would be prepared by the auditors if necessary. An accountant may include and sign an accountant's certificate/statement in the accounts, but this would usually be to state that they only prepared the accounts from the companies own records and doesn't offer any verification.

 

[STDFR33]

An online accountant is just that, an accountant that chooses to work remotely using online applications.

A local accountant can, and often will, still use online applications and only use email if that is the clients preferred method of communication.

They both offer the same services. The only benefit I suppose is that if your accountant screws you over, a local one is easier for you just to turn up at their offices. But those instances are few and far between thankfully.

 

[claret_n_Blue]

An accountant doesn't "sign off" company accounts, there is no need for any external check or verification unless the company needs a statutory audit (which will be dependant on turnover, asset values and employee numbers). In any case, the accounts are the responsibility of the director/s and they sign the accounts, an audit report would be prepared by the auditors if necessary. An accountant may include and sign an accountant's certificate/statement in the accounts, but this would usually be to state that they only prepared the accounts from the companies own records and doesn't offer any verification.

So whether I use a chartered accountant or a non chartered one to do my accounts and give me my tax breaks etc is irrelevant when it comes to filing with Companies House?

What benefit would a chartered one give me over a non chartered one? Surely if anything I will be paying the chartered accountant more in fees due to their status?

 

[NRLtd]

Anyone (and I really do mean anyone) can prepare Ltd company final accounts and tax returns, the ultimate responsibility and accountability lies with the company director/s. If an audit is required, then the audit would need to be conducted by an accountant/firm authorised to conduct statutory audits.

Being chartered is a qualification (and there are six accountancy bodies with chartered as part of their qualification title), using an accountant with such means they are members of one of the senior accounting bodies. There are other accounting bodies such as the AAT and the IFA who's members are also qualified and have the skill to prepar accounts. However, holding any qualification doesn't automatically mean they have the skills and experience required to prepare such accounts, it will depend where their particular expertise is. What you pay is most likely to be affected by the size of the firm if accountants, not necessarily their qualifications.

And the end of the day, you need someone who is competent, being qualified won't guarantee that but would give you recourse to a professional body if there was a problem. That said, there are accountants who aren't but are perfectly capable of doing what you need. Often people find their preferred accountant through recommendation rather than the Yellow Pages!

 

[Ian J]

So whether I use a chartered accountant or a non chartered one to do my accounts and give me my tax breaks etc is irrelevant when it comes to filing with Companies House?

What benefit would a chartered one give me over a non chartered one? Surely if anything I will be paying the chartered accountant more in fees due to their status?

Yes. it's irrelevant whether your accounts are prepared by a Chartered accountant, an accountant from one of the other recognized bodies or an unqualified accountant as long as they know what they are doing.

Fees charged tend to be more a reflection of their costs rather than their status as an accountant working from home is likely to be cheaper than one with expensive city centre offices

 

[MyAccountantOnline]

@claret_n_Blue

I am a Chartered Certified Accountant so yes of course I am bias. I don't think its fair, or right, that anyone can call themselves an accountant. Here are just a few reasons why I believe you should use a qualified accountant -

• A qualified accountant will have spent many years learning the skills required to be an accountant, and have taken very stringent examinations to ensure that his/her knowledge is sufficient.

• Once a qualified accountant has attained their professional qualifications, and before they perform services for the public, they must spend a period of time working in an accountancy practice to gain the necessary experience to perform the work you will be paying for.

• Once we have attained the skills and experience and become fully qualified we must ensure we maintain those skills and that those skills remain up to date by undertaking continual training each year. Tax, in particular, changes every year and only by continual training and learning can an accountant give you accurate advice.

• We must have professional indemnity insurance so you can claim if we make a mistake which costs you.

• We must have continuity agreements so that if something happens to us your affairs will be dealt with.

• We must adhere to stringent guidelines and rules which ensure we provide the highest levels of professional service.

• If you have a complaint about our service which we don’t deal with to your satisfaction you have a body who you can complain to.

• If you need a financial/mortgage reference lenders will generally only accept them from a qualified accountant.

Yes you may pay more for this but if I'm paying for a service I certainly want to ensure I get what I pay for.

 

[STDFR33]

The profession is a complex one. For example, there are those that qualified years ago, but resigned membership from their professional body because they felt that the body no longer represented them, or added value to them.

Any professional accountant will undertake CPD, have insurance, and generally follow the guidelines set out by the main professional bodies.

Quite frankly, and with respect to Nicola's comment, a complaint to the professional bodies is usually a complete waste of time.

The best thing you can do is speak to several accountants, and ask the right questions and get a feel for them. And if possible, get a recommendation from a friend or family member. Online reviews are becoming commonplace too, so have a Google search to see if there are reviews online.

 

[SteveHa]

Responding to TheAccountancyLab, I should point out that I specialise in Tax, I am not nor have I ever been a member of a professional body, and have never taken any of their exams.

I did, however, spend 20 years working in HMRC across various disciplines (including, but not restricted to, Schedule D, PAYE, Self-Assessment, non-dom & expat compliance, employer compliance, S9A etc.)

I have a further 10 years in practice.

Do you honestly believe that a couple of letters after someone's name makes them a more desirable option?

 

[STDFR33]

Do you honestly believe that a couple of letters after someone's name makes them a more desirable option?

No, and it wasn't a point I was trying to make.

Maybe your question is better directed at @MyAccountantOnline ?

 

[UK Contractor Accountant]

@claret_n_Blue

I am a Chartered Certified Accountant so yes of course I am bias. I don't think its fair, or right, that anyone can call themselves an accountant. Here are just a few reasons why I believe you should use a qualified accountant

Also bear in mind every few years Chartered Accountants are subject to a Monitoring & Quality Control Visit from their Regulatory Body to ensure the highest standards of practice are being adhered to.

 

[SteveHa]

No, and it wasn't a point I was trying to make.

Maybe your question is better directed at @MyAccountantOnline ?

Quote right, my apologies.

 

[SteveHa]

Also bear in mind every few years Chartered Accountants are subject to a Monitoring & Quality Control Visit from their Regulatory Body to ensure the highest standards of practice are being adhered to.

Whilst I am not a member of any PB, the practice I work at is ICAEW regulated, and as an individual I voluntary subscribe to PCRT and undertake CPD (more so than qualified colleagues), despite not being compelled to.

I do, however, have a good work ethic and want to do the best for my clients.