Looking for a competent and trustable accountant

[Simone C.]

I am looking into changing the structure of the business from sole trader to LTD. Has anyone got a contact for a competent and trustable accountant that could analyse my personal situation and provide guidance on the best way forward?
I have been disappointed by some cowboy accountant in the past so I am very skeptic about the real competency of the UK accountants so I'd really keen to get some feedback / personal experience motivating the contact proposed.

Thanks

 

[Elliot Green]

A possibly important thing is to avoid necessarily going for the cheapest option and in particular to instruct them before you do anything too adventurous, to stop things like the potential prospects of say, the inexorable overdrawn director's loan account problem, that can readily sprout all too often and can be easily avoided with the right advice and controls. There are plenty of other hurdles to vault and obstacles to navigate around and a good accountant usually is worth paying a bit extra for.

I can give you some suggestions (not us) who you might find helpful if you want to DM or email for them.

 

[Mark T Jones]

There are cowboyaccountants out there, but they are a minority - a couple of tips to filter them kut:

- Don't pitch in with cheapest.

- make sure you are communicating properly. Pay close attention to the questions they ask, and how they manage expectations - a good one should ask challenging questions, and talk flaws and all. A cowboy will make big promises revolving around quick / cheap / easy

 

[jack52]

In my experience, finding good accountants can be challenging. While most seem to be ok with the basics, anything more complex and it can be a bit more hit and miss.

 

[jack52]

In my experience, finding good accountants can be challenging. While most seem to be ok with the basics, anything more complex and it can be a bit more hit and miss.

Sometimes the question is should i use a lawyer instead?

 

[Daybooks]

Accountants can perform numerous services such as bookkeeping, accounting, payroll, compliance duties, tax advice and financial planning to name a few.

Therefore what are you engaging them to do? The bookkeeping only but then expect them to constantly monitor your position and advise on opportunities?

Many sole traders and owner managed companies don’t want financial planning because as soon as budgets and forecasts are mentioned they will switch off. A shame because of the missed opportunities.

If you want to know at which point it makes sense from a tax perspective to switch from sole trader to limited company or vice versa then you’ll be pleased to learn that it depends on lots of circumstances.

There is an option to use cash or accruals basis for a sole trader which can swapped and can be tax advantageous to do so; but a limited company must use accruals basis. How do you want to withdraw cash and what are your plans for surplus cash? What other income do you have? Do you know what fiduciary duties a director has?; they start from day one!

In theory a profit of £x in year one might be more tax beneficial as a limited company but the profit of £y in the following year would have been better served as a sole trader. Throw in tax rate changes and the results may be different. How much profit do you think you will make?

Unfortunately my profession has good and bad actors. I also know accountants qualified by experience much better than some professionally qualified ones. Check their credentials. Professionally qualified accountants must be current members of their professional body and all accountants must be supervised for anti-money laundering regulations.

Hopefully that gives you an idea of some of the things that should be up for discussion.

Good luck in your search.

 

[Mark T Jones]

Sometimes the question is should i use a lawyer instead?

Or a chiropractor?

 

[Ziggy2024]

Professionally qualified accountants must be current members of their professional body and all accountants must be supervised for anti-money laundering regulations.

Neither of these statements are correct which highlights that it really matters how you use your words.

To the OP, it's a shame that you feel that way. How many accountants have you used? It can sometimes be counterintuitive to move firm to firm, it can be beneficial to use one firm for more basic accounting whilst engaging a larger firm for more complex situation. You don't have to use one professional for every aspect of your business.

 

[Newchodge]

Sometimes the question is should i use a lawyer instead?

To which the question is how do you find a competent lawyer, knowledgable about the matter at hand?

 

[Daybooks]

Neither of these statements are correct which highlights that it really matters how you use your words.

To the OP, it's a shame that you feel that way. How many accountants have you used? It can sometimes be counterintuitive to move firm to firm, it can be beneficial to use one firm for more basic accounting whilst engaging a larger firm for more complex situation. You don't have to use one professional for every aspect of your business.

In the context of the question I am referring to accountants practicing with the use of their professional qualification. For example using “Chartered” or “Certified” and or designatory letters. With my Body, active membership is mandatory for its use and I believe all others.

Accountants whether professionally qualified or otherwise offering services covered Anti-Money Laundering regulations do need to be supervised.

https://www.gov.uk/guidance/money-l...egister#businesses-covered-by-the-regulations

Why do you think they do not?

 

[Ian J]

I have used Joyous (Joy & Co) for over 20 years and can confirm that she is both competent and trustworthy

 

[Ziggy2024]

In the context of the question I am referring to accountants practicing with the use of their professional qualification. For example using “Chartered” or “Certified” and or designatory letters. With my Body, active membership is mandatory for its use and I believe all others.

Accountants whether professionally qualified or otherwise offering services covered Anti-Money Laundering regulations do need to be supervised.

Why do you think they do not?

Indeed context and clarity does matter hence my comment.

You said:

Professionally qualified accountants must be current members of their professional body

This is not true. Qualifications, memberships and regulations are all separate things and are not necessarily the same. Not using the letters of a PB does not mean you are not qualified.

You then said:

and all accountants must be supervised for anti-money laundering regulations.

This is also not true. All accountants do not need to be registered for AML. In the context of the question the answer is it depends on what services are being provided and how they are being provided that determines the requirement for supervision.
In a broader sense AML is largely irrelevant to the client given that it bears no correlation to the expertise of the accountant and is simply an extra burden on the accountant internally.

 

[Daybooks]

My comments are in context of the OP’s question therefore do not need to extend to a broader context that serves no useful purpose.

You can be qualified by experience or by passing professional examinations. The use of the descriptions or designatory letters requires active membership. Thus the OP has a method of verifying credentials of those but will require more due diligence for those not. That is its context.

Similarly in the context of their previous experience (cowboys - their words) it also offers a suggestion as to what to look for.

The OP is looking for services which in my view would probably be regulated. They might be of limited value otherwise. Thus establishing they are supervised gives another credential check (context again). If an accountant wants to claim they do not need to be supervised because they do not provide any service that falls to be regulated then so be it. They could test out that theory by contacting HMRC to discover.

AML won’t be irrelevant to the client because they will quickly be asked to provide proof of ID and address; or maybe not!

 

[Ziggy2024]

My comments are in context of the OP’s question therefore do not need to extend to a broader context that serves no useful purpose.

You made comments that were incorrect. If you think it serves no purpose to give accurate answers then that's up to you.

You can be qualified by experience or by passing professional examinations. The use of the descriptions or designatory letters requires active membership. Thus the OP has a method of verifying credentials of those but will require more due diligence for those not. That is its context.

Similarly in the context of their previous experience (cowboys - their words) it also offers a suggestion as to what to look for.

OP did say cowboys, that doesn't mean the accountant was unqualified nor unregulated.

The OP is looking for services which in my view would probably be regulated. They might be of limited value otherwise. Thus establishing they are supervised gives another credential check (context again). If an accountant wants to claim they do not need to be supervised because they do not provide any service that falls to be regulated then so be it. They could test out that theory by contacting HMRC to discover.

Please read my answer again, there are several different aspects to the setup which could mean no AML is required. Which I clarified in response to your incorrect comment that "all accountants must be registered for AML".

AML won’t be irrelevant to the client because they will quickly be asked to provide proof of ID and address; or maybe not!

Does AML indicate whether the accountant is any good? If it doesn't then it's irrelevant to the client and the question.

We are in back & forth territory so I will leave this as my final comment. It irritates me when the profession fawns over AML as if it actually means anything.

 

[UK Contractor Accountant]

I am looking into changing the structure of the business from sole trader to LTD.

Why?

 

[MyAccountantOnline]

I am looking into changing the structure of the business from sole trader to LTD. Has anyone got a contact for a competent and trustable accountant that could analyse my personal situation and provide guidance on the best way forward?
I have been disappointed by some cowboy accountant in the past so I am very skeptic about the real competency of the UK accountants so I'd really keen to get some feedback / personal experience motivating the contact proposed.

Thanks

Simone I'm really sorry to hear you've had a bad experience with an accountant. I truly would like to believe you've been unlucky.

If you could perhaps give a little more information including the type of business you run and where you are located (you mention UK accountants which possibly suggests you are overseas?) it may help someone here to suggest a good accountant for you.

 

[Lisa Thomas]

If you don't find one on here from the accountants who have kindly taken time to respond, feel free to dm me for a recommendation.

 

[elaine@cheapaccounting]

I am looking into changing the structure of the business from sole trader to LTD. Has anyone got a contact for a competent and trustable accountant that could analyse my personal situation and provide guidance on the best way forward?
I have been disappointed by some cowboy accountant in the past so I am very skeptic about the real competency of the UK accountants so I'd really keen to get some feedback / personal experience motivating the contact proposed.

Thanks

Hi Simone

I empathise with your situation. I often experience difficulty in finding trusted suppliers to work with - particularly it seems trades that promise to turn up and they don't. I'm sure we've all got our horror stories of that. Often good ones are too busy to take on new work but are worth waiting for.

My suggestion for finding a new accountant is definitely to get recommendations as you're doing on here. Perhaps even try friends and family to see who they work with.

As regards your specific point of moving from a sole trader to a limited company it is useful to engage with somebody that can understand your motivation for doing this which might go beyond just taxation or systems and address things like limited liability as well as potentially future proofing your business. Of course the reason may not always be about accounts and tax!

Having said this it is worth knowing how much tax you will pay both as a sole trader structure or as a limited company bearing in mind dividend tax. There are plenty of calculators out there that you can use to look at this in the first instance. You may be amazed at the answers they give as it is generally not that tax advantageous to switch to a limited company anymore.

Do bear in mind that operating as a limited company is more complex when it comes to accounting and taxation. Generally you will need support from an accountant to meet your filing obligations as well as operate payroll and help you with your profit extraction strategy (mix of salary and dividends). With a Limited Company there is much more discipline needed with how you take money out of the business to live on.

Good luck with your business. If you do want me to have a quick look at your personal circumstances and give you some pointers then drop me a DM.

 

[eteb3]

Has anyone got a contact for a competent and trustable accountant that could analyse my personal situation and provide guidance on the best way forward?

Haider at Griffin & Sage. Ace.