How To Choose A Good Accountant

In this article I explore several tips one should consider when choosing their accountant or tax advisor.

Now, a lot of start-up businesses may decide to complete their accounts themselves to save money. However, I definitely recommend you do not follow this path because as a business owner, you will know a lot about your business; however, it is unlikely that you are a tax expert too.

My accountant has saved me 1,000s in tax, and any good accountant should save you money also.

So, how does one search for a good accountant? Here's a list of things you can do to help you find a good accountant.

Cold Call

Pick 10 accountants from your local business directory or newspaper and interview each one over the phone. Choose one that you feel can help you in your current and future business goals.

Family and Friends

Ask for recommendations from family and friends. It is unlikely that a friend or family member will recommend an accountant that they have had a bad experience with or who is not up to the job.

Ask other Professionals

Your solicitor or bank manager may be able to recommend a suitable firm of accountants for you. Again, it is unlikely for a professional to recommend someone who is not that good.

Social Media

Very popular today are social media platforms such as facebook and twitter. You could put a status update on your social media pages and request recommendations from your friends for accountants that they may have used.

You can also search for accountants in your particular city via social media platforms.

Once you have a list of accountants, you will want to explore deeper before you shortlist and finally choose the accountancy firm most suited to your business. Here's a list of things you may want to consider:

Fee Structure

The cost of accounting services can be especially important if you are a start up business. There can be a huge difference in costs between different accounting practices. Some firms will allow you to pay in monthly instalments, especially important for cash flow.

You may also want to consider taking out insurance to cover uncertainties such as tax investigations which can be very expensive. Obviously, in this case, the cost of the insurance needs to be added to the accountants fees to provide you with a good indication of overall costs.

Size of firm

Are you looking for a personal service, or would you prefer a larger firm where you may not feel that valued by your accountant? The advantage of a larger firm is that they may have various experts in house - this is not something a smaller firm will be able to do for you.

Location of Accountancy Firm

How important is the location of your accountant? Do you have a local business where you need to see your accountant every other week - for example if you were based in Coventry, you may want to choose a local accountant in Coventry, or do you have a business where it doesn't matter whether you see your accountant in person or not.

Client Base

You will also want to ask your accountant about their client base. Some accountants may specialise in your particular business type - these accountants will have more experience in your specialised business needs than one who does not have any clients in your business niche.

I always recommend that you shortlist 3 accountants and then visit each one before you decide to choose the one most suited to your business needs. A good accountant will be more than happy to provide you with testimonials from their clients.

Finding a good accountant can sometimes appear to be a daunting task. However, I can't express enough the importance of having a good, qualified accountant to manage your accounting and tax affairs. The savings a good accountant will provide you in your business will easily outweigh any costs.