Choosing an Accountant
Picking the right accountant is about as important as picking your perfect mate. Follow our tips below and you won't be left wondering where it all went wrong.
Choosing the right accountant to look after your accounts or those of a small business can be a tricky and complicated task – especially when you realise that the validity of your choice might not be known until you are facing a hefty fine for filing late or incorrectly entered accounts.
However, there are steps you can take to limit greatly the possibility of making an unwise decision.
Getting started
It is advisable to find an accountant as soon as you think you need one. Look into at least three firms before making your choice. Listening to personal recommendations from friends and associates is often the best way of compiling a shortlist.
Qualifications
Anyone can call him or herself an accountant, but only a genuine and competent firm will be either chartered (with the letters ACA or FCA after its name) or certified (bearing the letters ACCA or FCCA). It will also be a member of one of three professional bodies: the Institute of Chartered Accountants (http://www.icaew.co.uk), the Association of Chartered Certified Accountants (http://www.acca.co.uk) or the Chartered Institute of Management Accountants (http://www.cimaglobal.com).
Size
If you are an individual or running a small business, a huge corporate accountancy firm would be the wrong choice for practical as well as financial reasons. A small firm of accountants, especially one experienced in dealing with individuals and small businesses will be able to understand your requirements and offer specific advice on matters that concern you.
Price
A modestly sized accountant is likely to charge a fee that is well within your budget. Some accountants ask for a fixed monthly or annual amount, while others charge an hourly rate. It’s up to you to calculate what you can best afford. Don’t be afraid to enquire about fees, and ask for a quote for the first year’s services.
Rapport
Your accountant is likely to be your sole financial adviser and a long-time business associate, so it is essential to have a good rapport with him or her – and he or she should show an interest in you and your business. Your accountant ought to be in regular touch with you, not just at year-end.
Experience
Ask about what kind of clients the firm has had in the past and the sort of advice they specialise in. Do they offer extra services, such as advice on growing a business? Ask to speak to existing clients. Any decent accountancy business will be willing to arrange this for you.
Growth
If you are running a business, it is essential that you pick an accountant who will be able to handle the greater and different demands you place upon it as your firm grows. This will help avoid the inconvenience of changing accountants – something that you don’t want to do too often, if at all. Ask yourself: does this accountant’s aspirations match my own, and will he or she be able to help me if I choose to sell my business?
