For any small
business, finding the right accountant is a must. An
accountant, after all, isn't just a professional to compile a tax
return; they can and should be seen as an advisor and a partner
with an interest in seeing your business succeed and
grow.
Here's a list of factors to keep in mind when choosing your
accountant.
Generally, though, referrals or word of mouth are the best ways
of finding the kind of service you're looking for. Even if a
recommended accountant doesn't offer quite the right service for
your business, they might recommend someone who does. Your
solicitor may be a good person to ask for a recommendation, or, if
you have a close relationship with your banker, their suggestions
may be worth following, or a person running another business whose
advice you respect.
Possibly the least effective way of selecting an accountant is
to do a simple search for a company online or open a phone book and
find a name. The decision is really too important to trust to a
random selection or the impression created by a pretty
website. But, if this is unavoidable, at least make sure you
quiz those you select to ensure they are right for your particular
business. We offer some suggestions on what you could ask
below.
Ask for testimonials from other
businesses.
These may seem unusual techniques for selecting a professional,
but why not? You will be paying by the hour and you should,
just as in any successful business transaction, know what you're
getting for your money.
Your business, like any other, needs good tax advice and the
ability to plan ahead. It's important then to see if your
accountant is interested in doing this and really appears to engage
in your business and its growth plan.
Perhaps ask how they believe they can assist your business in
ways that go beyond just compiling a tax return.
How often will they meet you to discuss the status of the
business and plan for the future - if you want to involve them at
this level.
It's worth thinking about how many of the following factors
matter to you and how important you believe they will be for your
business.
Do you need an accountant that understands and is experienced in
SME finance, such as loans, for example?
Does it matter whether they understand your business area
specifically - are there unique factors in your line of business
that make this important?
Should the accountant be local to your business? Is it
important that they know about local and regional council matters,
such as planning applications and other regulations and rates as
they might affect your business?
How active do you want the accountant to be in making
suggestions and offering advice to your business? There are
many areas in which advice may be useful such as how to make cost
savings, improve cashflow, capital gains taxes, when is the best
time to sell your business and so on.
Ask lots of people for recommendations, not only people you know
well. If the name of an accountant comes up regularly, that may be
highly significant.
Be clear in your own mind about what you really want from an
accountant and then you will be able to ask specifically whether
these are services they can provide.
Clearly, as with any business transaction, it's important to be
certain on fees - what precisely you will be paying and for what.
Look for transparency.
The size of the practice can be important, especially if you
feel you want to be able to gain easy access to the accountant at
short notice - a smaller firm may make this more likely, but not
necessarily.
It's always a good idea to visit any prospective accountant, to
meet them and see how easy they are to discuss matters with and how
informed they are when answering your questions.
Finally, don't take second best. This is potentially a long-term
relationship and one that is highly important to your business,
whatever its stage of development, so keep your standards high and
don't hesitate to look elsewhere if you're not entirely happy.
