6. How to choose an accountant
Tips from Startups on how to pick the number cruncher that's right for your small business
The first thing you need to consider when going through your list of potential accountants is whether or not any of them have some degree of familiarity with your business’ sector. It won’t be as much help if you hire someone used to dealing with manufacturing companies if you run is a leisure business as they won’t be as familiar with specific legislation.
Also, look at the size of the firm. A small to medium-sized business accountant will specialise more in the kind of accounts issues common to smaller firms. They are also likely to charge less than a larger firm and give more direct access to more experienced partners.
Make arrangements to visit several firms in person to meet the people you will be working with and to make comparisons. “A lot comes down to personal chemistry,” maintains Paul Watts corporate finance partner at HLB Kidsons.
“The accountant needs to be able to get into your business and show an interest in it as well as just doing your accounts if they are to advise you properly on the business.” You’re likely to be working closely with your accountant and if you don’t get on at a basic level, your professional relationship may be more difficult than it needs to be.
Ask if you can speak to other clients. This is like asking for references and will be a real test of the calibre of the firm. If they are confident that their service has impressed, they shouldn’t have a problem referring you to a few people. Equally a good accountant should want to make an appointment to come and see your business. “It’s important to go out and see clients,” says Watts.
“You can’t fully understand a business until you have been taken round it.” And allow each accountant to pitch to you. It isn’t just about what you want but also what they’re prepared to offer.
What if your accountant does a bad job?
You’ve followed all the rules and carefully chosen your accountant. But this is the first time you’ve had an accountant – how do you know if they’re doing a good job? And what do you do if they’re not?
It is possible just to say to an accountant that you no longer want to work with them – you can effectively ‘sack’ the firm. But don’t rush to do this at the slightest hitch, it’s important to build a relationship with your accountant. This is difficult if you are changing every six months.
Look at what you are getting from them. At a basic level, are your accounts and tax returns prepared on time? Are you being billed as agreed and are your phone calls and letters answered? Then on top of that take note of the advice they have given you. Have they come up with ideas you wouldn’t otherwise have thought of? And if not, is that because you haven’t liked the ideas – or because there haven’t been any?
Problems can usually be ironed out so keep careful track of the service and speak to your accountant if you need to. But at the end of the day, don’t forget you’re not paying for poor service.
Are you looking for an accountant?
We’ve done a bit of research and found TaxAssist Accountants who specialise in offering tax advice to small business owners. They offer a free initial consultation which lasts no longer than an hour and which puts you under no obligation to sign up as a client. The consultation also gives you the opportunity to decide whether or not you feel that you can form a working relationship with that particular accountant. If this is of interest you can fill out this simple form