Finding an outstanding accountant can make a small business thrive. For small businesses, having an excellent accountant to help them navigate ever-changing tax rules, legislation and common financial pitfalls can be the difference between growing or failing.
The best chartered accountants do far more than just help you file your taxes each year, or prepare financial statements too. They also supply specialist and wise business advice when you need it, and come prepared as built-in business tax experts who can help you to save money by maximising your deductions.
A good chartered accountant will also be able to answer business critical questions, like what are the pros and cons of being VAT registered (value added tax), how to register as a limited company, and even whether you should take on new staff or buy new space. Expertise like this is invaluable to small business owners who don’t have the time to spare in between trying to run and grow their business.
Ready to find the right accountant? Below are our insider tips when it comes to how to find a good accountant for you and your small business.
1. Review your business needs and their services
Some accountants practice general accounting, whilst others have specialisations in their field. For example, at Raw our chartered certified accountants can help any industry, but our two specialisms are in helping our clients save money in their tax returns and providing a full finance function. Other accountants might be specialists in giving bespoke financial advice, whilst others may have a nuance for bookkeeping services.
However these unique specialisations make it even more crucial that you choose a business accountant who has experience that matches the size and sector of your business. It’s no good choosing an accountant whose speciality is offering Chief Financial Officer level advice to property management companies if you are a small tech company with under five employees. Likewise, it’s best not to choose a business accountant who specialises in large enterprises if your business is small to medium, because your business and accounting needs will be very different.
Ask your shortlisted accountants about the services they provide to their clients when you contact them for the first time. Talk about how they work with customers and how much experience they have in your field. Will it be necessary to meet face-to-face with your accountant, or will virtual meetings suffice? And remember that your ideal accountant will be knowledgeable about the size of your business, will have experience in working with that business sector and know what its potential small business accounting needs will be.
2. Examine their qualifications
Make sure you use a professional accountant who is qualified with, for example, either with the Institute of Chartered Accountants in Scotland or England and Wales, or the Association of Chartered Certified Accountants. They may also be a member of the Institute of Financial Accountants or Independent Financial accountants.
When you employ a chartered certified accountant, you have reassurance that they are qualified accountants who uphold the strong reputation of their profession.
3. Make sure you can communicate with them (plain english)
One thing that is also important to not overlook is to make sure that your accountant speaks in a way you can understand, i.e: doesn’t confuse you with financial jargon. Your accountant should be able to make even the most complex financial lingo sound straightforward, and it’s important that they do.
Even though they are your accountant, it is still your business which means that you are legally accountable for it to the taxman and the rest of the authorities, hence why it’s imperative to understand what your accountant is telling you.
4. Check they understand how a business grows
A good accountant should have a solid understanding of business growth if they do not have personal experience in growing a business to ensure they are both credible and relatable. At Raw, we’re just like you: hard-working people who know first-hand what it takes for a business to grow and evolve, and we know the types of brave decisions business owners make daily. As a result, you can count on us to not only advise and guide you but also to show you innovative ways of growing and evolving. Make sure your small business accountant can do the same.
If you’re a small business owner wondering when to hire an accountant for your limited company, use our helpful blog to see if the time is right for you.
5. Look for someone who goes beyond numbers (i.e business advice)
Choose an accountant that is both proactive and reactive. For example, someone like us at Raw who can also teach you how to save on your business taxes legally and ethically, or someone who will recommend and then teach you excellent accounting software for your company. Both of these types of accountants will be much more beneficial for the longevity of your business when compared to an accountant who simply crunches the numbers and does little else.
6. Review their support levels (eg what advice do they offer)
Any prospective accountant should be able to handle the basics of accounting, such as sales, payroll, purchase ledgers, and cashflow. But, a good accountant should also be capable of providing guidance during tough situations.
At Raw, as part of our accounting services we’ll help with specialist tax advice but we’ll also double up as business advisors. We’ll use our own business expertise to help you with your business plan, or to advise you on matters that go beyond just your business finances. An accountant is more than just numbers – they should be able to be by your side no matter what your small business faces.
7. Check for online accounting software
It’s critical for you to use your time wisely as a small business owner. If you find that most of your day is spent logging receipts and struggling with spreadsheets, it’s time to get your finances in order online. At Raw Accounting, we use a safe, cloud-based bookkeeping solution called Xero, but any good accounting software should allow you to access your business finances from anywhere in the world. Find out more about how cloud accounting software works in our blog.
In today’s climate it’s doubly important to check whether your accountant is familiar with online accounting software as the software is responsible for MTD compliance. Ensure that the software they use is capable of being used from any device (whether mobile, tablet, or PC) and has the ability to let you check bank balances, pay and raise bills, customise reports, and even record business expenditures.
8. Meet and ask questions
Make sure you meet with your prospective accountants because this provides you with the best opportunity to ask additional questions and get an understanding of how you will work together. Before your meeting draw up a list of questions to ask like:
- Their licenses or listed professional organisations: Have you turned up anything unusual, or were you unable to obtain this information earlier? Get specifics about your prospective accountant’s education, degrees, certifications, and memberships in professional organisations.
- Their previous work experience: You may already be aware that the accountant has relevant expertise in your area, but how much? Check the accountant’s history and make sure they are current with the most recent tax rules and regulations.
- The cost of services provided by the accountant: Discussing prices is something you should not be bashful about. Is the accountant charging per hour? Do they provide bundled services for a cheaper price? Do they charge in a particular way if you want tax advice via email?
- Their accounting software: Are they using the right type of accounting software that is MTD compliant? Is there a client portal available in some form to both of you that allows for easy access to your financial records? Good accounting software will have a client portal that can be linked to your financial records, allowing both you and your accountant to keep a general eye on your annual accounts.
- Their communication practices: What is the accountant’s email or phone policy? How long will you wait for a response? If you need an accounting service that is available 24 hours a day, seven days a week, would you be comfortable waiting a day or two for a reply from someone who only works certain hours? Or it better to find an accountant offering year-round support for other questions and financial planning? Consider how much and what type of communication will be best for you.
9. Make sure you’re comfortable
The ideal accountant should feel like one half of a long-term relationship. They will become the person who provides financial advice to assist you in making long-term decisions for your company, and you’ll come to rely on your accountant to guide and follow tax rules every year at tax time.
As your company expands, you’ll need help and expertise from others. While outsourcing your bookkeeping may be a good approach to start, hiring an accountant can save you time by eliminating the need to do bookkeeping, tax preparation, and research on ever-changing tax rules and regulations.
Finding a trustworthy accountant to help you manage and develop your business will save you time and mental energy while also allowing you to focus on running and developing your company. Remember that the best accountants are the ones who become an important component of your company’s long-term success.
Looking for a reliable qualified accountant?
Look no further than us at Raw. We’ve got years of experience in helping small to medium sized businesses grow, through a combination of accounting services, bookkeeping services, tax advice and solid business advice. We know what it’s like to be a small firm trying to grow, and we can help with every step of the way. Find out more about us, and our accounting services, or get in touch for your free, no obligation call.
