Small Business Accountants - How to Make the Right Choice

Choosing the right accountant for your firm should beconfusing pool to dive into, accountants do not all
at the very foundation of your business set-up; get itcharge in a uniform way, making it hard to compare
right and the relationship you have with yourlike-for-like, many charge an hourly rate, still a very
accountant will be one of the longest businesstraditional way to charge but very hard to budget for,
relationships you'll ever enjoy. Get it wrong and yousome will provide an estimate for the year, but do be
could be left feeling bitter and disenchanted with theaware that estimates are just that and as such are
whole profession.subject to change, others may advise a fixed fee,
Many people swear by recommendations fromprobably the most beneficial way to be charged as it
friends, family or business contacts and indeed this isallows for confident budgeting, but do ensure that the
still a vital source of new fees for many accountants;fixed fee is all inclusive as it is easy to believe your fee
the problem with this is that accountants are not a 'onewas fixed only to receive an unexpected top-up bill for
size fits all' type of profession, and so Uncle Peter'sextras at the end of the year. The safest thing to do is
perfect accountant is not necessarily going to workto get the fixed fee in writing with a clear quote
well for you; it is important therefore to do a bit ofadvising its all inclusive nature. If the accountant also
ground work, make a checklist, ask questions, exploreoffers a way of paying a monthly amount rather than
your options, and choose a practice that is right fora lump sum this is obviously of great benefit to the
your business.cash flow of your business.
Make sure that you choose a qualified accountant; anyIt is probably sensible to get more than one quote
one can call themselves an accountant but check that(unless you are very enamoured with the first
yours is a member of one of the main threeaccountant you speak to), but advisable to limit the
professional bodies: The Institute of Charterednumber to three or four (unless you are completely
Accountants, The Association of Chartered Certifieddisenchanted with all that you've spoken to) because it
Accountants or The Chartered Institute ofis very easy to become bogged down with a surfeit
Management Accountants; if things go wrong you'llof information.
have some redress through their professionalGood accountants are not always necessarily good
association or institute.communicators and yet good communication between
Accountants come in all shapes and sizes, so chooseyou is essential for the relationship to work, so have a
carefully; it is important that your new accountant ischat with someone at the practice who knows what
appropriate to your needs. Be aware of what differentthey are doing and check that a point of contact and
accountants can and cannot provide for you; aor a 'who does what' list is something that they
one-man-band accountant for instance may be harderprovide, as this shows that they care about keeping
to speak to as they are spread more thinly betweenyou connected to what is going on. Another simple
clients, they may not be reachable when they go onsign that a practice is thinking of its clients is a focus on
holiday; a very large firm may be geared to servicingnew technology, if an accountant is comfortable using
very large businesses and may have a less personalonline facilities and email and utilises things such as
touch; think about what is important to you and yourvirtual signature systems, this can not only maximise
firm because your accountant will probably be youryour security but free up your accountant's time
main business advisor and for small businesses inallowing them to concentrate on the real business of
particular may end up as a sort of unofficial financesaving you money.
director.Finally a few myths busted:
Once you have narrowed down your list and haveIt is not essential and in fact it is often
some appropriate, qualified accountants in your sights,counterproductive to have everything in the hands of
there are a few things to ask about when speaking toyour accountant, small businesses benefit greatly from
a prospective accountant; most qualified accountantsdoing their own bookkeeping and it will certainly lower
should be able to get the basics right, the things theyyour fee. Locale is no indication of quality or
term 'compliance' work, filing documents correctly andconvenience, an accountant being next door to your
on time, looking after payroll etc. but it has often beenpremises does not mean that they are necessarily
said that the difference between an averageyour only or best choice; today's information
accountant and a good accountant is that a goodtechnology allows us to explore options further afield. If
accountant will also save you money, so it is importantyou are unhappy with your accountant it is easy and
to establish just how seriously each potentialpainless to change to another and there is absolutely
accountant takes their firm's tax advice; check thatno good reason for remaining a client of an accountant
they keep up to date on tax issues as it is an areawith whom you have lost confidence. Of course a
that changes very quickly and confirm that they keepgood accountant alone is no guarantee of business
their clients abreast of tax information, perhaps with asuccess, but when you find an accountant that is right
monthly email.for you and your business you are at least starting as
On the subject of money, fees can be a veryyou mean to go on. Good Luck.