Accounting for taste
From dealing with PAYE and VAT through to preparing accounts and statutory returns, a good accountant can help reduce your tax bill. If you choose poorly, you may find that your business suffers. So here are 10 practical steps you can take to select the right firm to help with your accounts.
1. Ask friends, colleagues and even your competitors for the names of their accountants, and ask for their views on the practices that they use.
2. If this fails, you could turn to the several organisations (see panel below) that exist to help and protect the public, as well as regulate the accountancy profession. Local directories also publish lists of accountants.
3. It seems odd that to practise as a doctor, lawyer or a chemist, it is necessary to study for professional qualifications, but to be an accountant, you need only set up in business and call yourself an accountant. It is worth making sure that the person you go to is professionally qualified.
Members of the organisations listed below have undergone training and examinations. They are professionally qualified, and are bound to uphold the standards of business ethics their organisations maintain. Each organisation has its own method of supervising members and complaints handling, should you ever have a problem. For members of the ICAEW, look for the letters ACA or FCA after their name; for the ICAS, CA; and for the CA, ACCA.
4. You might find it helpful to prepare a shortlist, with a minimum of two and a maximum of six practices to call. If you ask too many, it will only confuse your decision. Generally, the larger the practice, the greater the range of services. On the other hand, the smaller the practice, the more personal the service.
5. Call the practices on your shortlist and ask about the areas they specialise in. Arrange an appointment if the practice seems promising. But check to see if there are any charges for the initial meeting. Also, ask if the person you are seeing will actually be your accountant.
6. With each initial appointment, ask whether the practice has any experience with your type of business. If so, try to get names of these clients and call them.
Gauge how much interest the accountant shows in you and your business. How many questions does he ask? Test him to see if he understands your business. Does the accountant agree with everything you say, or is he willing to point out where you are wrong? This is important: a "yes man" will only tell you what you want to hear - even if your business is failing.
7. A good accountant will be able to help you manage and control your business's finances. However, you should guard against giving anyone sole control over the company cheque-book. Beware of an accountant who suggests giving him access to your money.
8. Before committing yourself, check on the billing arrangements. Some firms will want you to pay a regular amount on a monthly basis, others may do the work and then bill you when your accounts are produced. While you are at it, check to see how the bill is worked out - ask for the firm's hourly rate and an itemised bill. What is their minimum charge for audits? And will they give you any help on how to keep your bill down?
9. The organisations mentioned publish free guides that give practical advice on the various options facing those in business, and how accountants can offer expert guidance.
10. If you should have a problem, it is worth telephoning your accountant's association before formalising a complaint.
Remember, choosing an accountant is like choosing anything else your business needs - it is only another commodity or service that you are buying. And in this case, a poor choice might destroy your business.
