If you run a small business then it’s important to hire an accountant to help you. Even if you have a good head for figures, the time that doing the accounts will take up is valuable time that you could be spending on other elements of the business. Therefore, you should look into hiring an accountant as soon as you can, so that you’re not suddenly having to look for one without being able to do all the important groundwork first. There are certain things that need to be considered before you start paying an accountant, and we will go through them here.
In the past, it was essential that a company accountant was located near to the company’s office. They had to be able to visit when they needed to, to go through files and papers. Today, however, location isn’t necessarily a factor that will make a difference. There is cloud accounting and online discussions that can be used instead of physically having to be in close proximity. This can make your search for the best accountant for your business much easier, as you are not limited by location, although you will need to ensure that they understand the specific tax laws that relate to your business and your geographical area. If, however, you like the idea of someone coming to your place of work and being able to ask you questions face to face, then you will need to look more locally; you will also need to ensure that the accountant works in this manner, as it is becoming more and more unusual. Before choosing an accountant, you will need to have this decision firm in your mind.
Accountants are regulated by professional bodies. These bodies also provide qualifications and maintain professional standards, so finding an accountant who adheres to these standards, and who has these qualifications is important. If something does go wrong, you as a business owner will have some recourse to complain, and potentially take things even further, to court if necessary. If you have narrowed down your search to a small number of accountants then you should look into what specific qualifications they have. They should have a degree, plenty of experience, and of course the certification as well. When it comes to accountants, it is worth hiring the best you can afford right at the start, as it will serve you well and potentially save you a lot of money down the line.
However you go about searching for an accountant, you should engage someone with the relevant expertise to work in your business. Not only should they have experience working in a business of a similar size and with a similar turnover to yours, but you’ll also ideally want someone who has worked in a business in a similar sector too. There are many different quirks and changes in tax laws that can affect specific businesses, so hiring an accountant who will already know about any changes, or be able to access the information, can save you time and money. An accountant who understands the unique needs of your business is all-important. You might also want to consider whether the accountant has worked with businesses that are bigger than yours. That way, if and when you do grow, you will be able to keep your trusted accountant with you.
Word Of Mouth
As with anything, word of mouth and a personal recommendation can be the best way to engage any kind of professional services. Ask around your friends and family, ask your business connections and your suppliers, find out who they use and how happy they are with them. Discuss the pros and cons of working with that specific accountant, and talk about how much they are charging. Although discussions like these many not be the most interesting in the world, or the easiest since you will need to talk about money, they are essential. You may find the ideal accountant this way, but remember that engaging an accountant does need to be a personal decision, and shouldn’t be done just because a friend suggests a name. It’s better to take those names and carry out the relevant research before committing to anything.
Most accountants will have their preferred professional tax software to work with. There could be many different reasons for this, and it is entirely their decision. Where it could potentially be an issue is when you are using different software in the day to day running of the accounts. There might be problems when it comes to sharing information, and although there are some programs that allow for exporting and importing data from other systems, it can be a time consuming thing to do. Therefore, find an accountant who uses the same software as you do. If there aren’t very many of them, and it limits your choices, it might be time to ask yourself whether the program you are using is outdated, or simply not good enough. If this is the case, you should upgrade or change entirely. Again, this is time consuming, but once it’s done it makes organizing your finances and paying your taxes much easier.
Look For Money Savers
Some accountants really don’t do much more than complete your tax return and check through your accounts to make sure everything is as it should be. That’s fine – it’s what you are paying for – but there are other accountants to spend a little more time going through those accounts, and who can find ways to save you money. It might only be a little, but it could be a lot, and so it is something that you will definitely want your accountant to do for you. The accountant should also warn you of any pitfalls when it comes to these offsetting ideas as well. For example, there is a chance that a tax will be levied on your home when you come to sell if it you declare that you are using it as a business premises. There is a lot to consider, which is why hiring an accountant who looks at all aspects from every side is important.
The Best Use Of Time And Money
Unless you secure a fixed price deal, most accountants prefer to work and charge by the hour. Therefore, you may not want to have them do the day to day data entry tasks that need to be completed; these don’t have to be done by someone with accounting qualifications, so if you have an administration assistant, secretary, or office manager, they could do the job and save you money. You could even do it yourself if you set aside a specific amount of time per week to get it done. Make sure you do get it done though, otherwise it’s the kind of job that will just get bigger and more complicated over time, and if that happens you will probably hire an accountant to do it anyway. Having great accounting software can make a difference here; if it is intuitive to use then you will be more likely to do the work. If it is a huge effort, you’ll keep putting it off.
Interview Your Accountant
When you start to reach out for accounting assistant, you’ll receive a number of different offers. Don’t just accept the first one you see, or the one with the best price. It’s important to read through each proposal carefully, taking the time to note all the important parts that will make your life easier, and save you money on your taxes where possible. Once you have done that, you should interview each prospective candidate. This may not be possible to do face to face, but over the phone, or through a video chat, is just as useful. It’s essential that you feel you can work with the person you are hiring. Although you may only be in contact a few times a year, that contact should be polite and not something that either party dreads doing. Better – and more – work will be done if everyone gets on well.
There is no single method that accountants use to work out their fees. You might pay by the hour, on a ‘per job’ basis, or perhaps a monthly retainer. You might even be charged a percentage of your turnover. No matter which way it is done, you should always try to negotiate a better deal. Get written quotations from any accountants you are considering and then compare them carefully. One fee structure might make perfect sense now, but will it still work in your favor when your company grows? Or will you be spending more money than you are happy with? When you have determined what you want to pay, and to whom you want to pay it, you can begin your negotiations. It might be best to use a combined method of paying, or something on a sliding scale. The accountant may not agree to your proposals, so ensure that you have a backup plan should that happen.