Accountants: How to Choose an Accountant
An
accountant can be more than just a person who prepares the accounts and
talks to the taxman for you.
Over
time you will find that your accountant can become a valued business
advisor. Remember that they are dealing with a spectrum of local
businesses of various types.
A
natural by-product of this is that they will have:
•Many
contacts – some probably very relevant to your own business
•Dealings with the local bank managers and a good idea of what they expect
for applications such as financing in particular, the style of business
plan they like to see presented to them
•The
respect of other local organisations particularly banks and other
professionals that will reflect well on your business
•A lot
of experience in dealing with the local tax office and regulatory bodies
Professional qualifications
I can’t
stress enough that if you want to have a solid, long term, happy working
relationship then you should always use a qualified accountant.
You will
of course always be able to find other cheaper alternatives but consider
this:
•Do they
have enough experience and training to carry out the regulatory and
governmental obligations you have? Remember, when the Inland Revenue or
IRS are handing out fines for late payment or non-compliance, there is
only one person who suffers – you
•Are
they up to date with the latest legislation regarding taxation and company
law?
You see
there is one main reason why established practices charge a higher rate
and that is because they take a professional attitude to keeping their
knowledge up to date.
They
attend regular updating seminars and courses which can be quite expensive
as it is specialised knowledge
Other
offices
You
should find out whether the office you are dealing with is one office as
part of a larger group or just a single practice.
This is
relevant if your business is more than just a single entity such as a shop
or small local business. You see as your business grows so will your need
for technical assistance.
There
comes a point when you may outgrow a local practice and need to move on to
a medium sized practice where the specialised knowledge is split amongst
its senior staff.
In a
larger practice there may be a partner who specialises in obtaining
corporate finance, several tax specialists in different areas and partners
who specialise in investigations and due diligence work, in addition to
those staff who do the day to day work of accounts preparation and tax
returns.
Your
choice of practice will ultimately come down to what size your business is
and what expansion plans you foresee.
There is
nothing wrong with choosing a larger practice, just consider whether there
is any cost implication.
Existing
clients
You
should consider whether the practice you are reviewing already have
clients in the same line of business as yourself.
This can
be advantageous if you are in a specialised field as your accountant will
already be up to speed on your particular requirements and this may
translate into a reduced fee.
Recommendations
Naturally you should seek recommendations from as many people as you can.
Particularly take note of advice given by business associates.
In
addition, consider these avenues for advice:
•Local
banks and other professional advisers
•Try to
seek permission to contact existing clients for references, this can be an
informal way of gathering great information
•See
whether the practice publish regular articles in say local newspapers
giving free advice to readers. This can give an indication as to the
expertise of the practice. Where to find your accountant
There
are several places to look including:
•Simply,
walk down your local high street and call in at reception for practice
brochures
•Yellow
pages – usually the professional bodies will advertise the names of local
authorised practices
•Local
papers and other publications
•Search
online
•Contact
the professional institutes in your country for a list of members
Trevor Sadowski has worked in finance departments for the past 23 years
and has been a member of the Chartered Association of Certified
Accountants (ACCA) since 1994. Trevor currently provides contract
accountancy support through short-term placements or interim management in
the UK. Trevor may be contacted at
http://www.moveaheadonline.com
