If you are about to start a business or have already launched it, you may not have thought about what will happen when you reach the end of your first year of operations. It may seem like a long way to go and there are plenty of other things to worry about when setting out on your own, so trying to find an accountant isn’t at the top of your priority list. But a good accountant, one that suits you and your business, should be chosen carefully, not in a last-minute rush as the deadline to file your accounts and complete your tax return approaches.
So when you have a spare moment in that busy freshman year, do a little research on your options for bookkeeping services. You can of course go for a DIY approach, and this is perfectly possible if the business is fairly straightforward, but even for simple businesses, including one-man consultancies, don’t underestimate the time it can take to prepare your own accounts. Not only will it take a lot of your time, but you can also miss out on the tax saving tips that a decent accountant will include as part of their service. You’ll also save yourself the hassle of completing your tax returns, both personal and business.
But how do you know what makes a good accountant and where can you find one?
Of course, you could just do an internet search of your local area and phone a few likely businesses. You can ask for personal recommendations from people you already know with businesses of their own. Some people also post on small business forums, but if you do, you risk receiving a flood of messages from accountants selling their services instead of genuine recommendations.
Some accountants work independently from home and it is tempting to believe that they will be a cheaper option, but this is not necessarily the case. The downside of a home accountant (or, indeed, a one-man gang in an office) is that there’s no one to turn to if, for example, they get sick and can’t work when you need them. And if your charges aren’t significantly lower, it may not be worth the risk.
Also make sure the company runs businesses similar to yours, either by industry or size. You don’t want to find out that you’re using an accountant who deals efficiently with large corporations if you only employ 5 people or vice versa.
Will you have a dedicated accountant so you talk to the same person or see the same person every time? Remember that large accounting firms often do not assign your business to a dedicated accountant, so there is little opportunity to build a good relationship with your accountant and have them truly understand your business and any issues you may have. This can be a distinct disadvantage, especially since you may have to bring the accountant up to date on your business every time you speak to him.
Taxation in general is a complicated subject, but corporate tax even more so, therefore getting to know your accountant will help you build confidence that he or she is competent to handle your tax matters and can help you minimize your tax liability. .
Here are 4 essential questions for any potential accounting firm considering:
• Will you be assigned a dedicated accountant?
• What type and size of companies do you currently deal with?
• Is the accountant local so they can meet easily?
• Do you offer a flat fee accounting service?
It goes without saying that the accountant you choose must be qualified as a certified public accountant or certified accountant. Another factor to consider is how much you will want to ask for advice during the year; this is particularly relevant to new businesses as they grow and evolve while establishing themselves. If you want the option of seeking specific advice but don’t want to be surprised by a large bill at the end of the year, then consider an accounting firm that offers flat fee accounting services. They typically include several pricing options, from a basic service to one that includes regular phone support or face-to-face meetings.
