Tips on Choosing the Right Accountant for Your Business

When youโ€™re setting up and organising your business, we wouldn't blame you for prioritising a lot of the more glamorous elements ๐Ÿ’Ž than turning your attention to the humble matter of accountancy. ๐Ÿ“’

But ๐Ÿ‘€, like it or not, effective management of your finances is key to making your venture a success ๐ŸŽ‰ - no matter how large or small. It's a fundamental element, the importance of which can't be overstated. 

Among the key decisions to make in this area is whether or not you need to engage the services of a professional manage it for you in the first place. And if so, how should you go about finding the best accountant or bookkeeper to suit your business' requirements? ๐Ÿค”

Why You Need an Accountant

Many people believe accountants are only for big businesses, and that freelancers and SMEs are better off taking care of their finances themselves. The recent rise of ever more simplified, digital and automated cloud accounting software has made this school of thought even more prevalent. With firms like Xero and Quickbooks leading the charge, it's now portrayed as having never been easier to manage your business finances. It's so easy you can do it on your mobile too! Or so it's claimed.

Unfortunately, that's not always the full story. For instance, you might feel differently about this 'simplicity' after youโ€™ve spent days trying in vain to navigate the complicated, nuanced world of tax returns. ๐Ÿ™„ And spent hours trying to match receipts to expenses to the bank transaction so you can reconcile a payment, re-bill it to a client, and reclaim the tax. ๐Ÿ˜’ That sounds like a responsibility we'd want to give to someone else, or, you know, automate. ๐Ÿ˜

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Moreover, in business, time really is money. ๐Ÿ’ฐ Wasting lots of yours trying to master a complicated topic with no training is undoubtedly not the most productive approach. ๐Ÿ’ธ How much time could you save having an accountant to help you with a subject they know inside out? Something that might take you 16 hours or more to do yourself, could be done by them in one or two.

So the real question to ask is: How much is two working days of your time really worth? What else could you have accomplished in that time? If the answer is something along the lines of 'more than it would cost me to outsource that task' then you should probably get an accountant. 

Whatโ€™s more, hiring an accountant doesnโ€™t just mean getting someone else to do to the hard work for you. It makes business sense as you're making or saving money on multiple fronts. On the one hand, as we've noted, you save your time to pursue more valuable business-growth activities. On the other hand, it can also be a great way of saving money more directly - as their knowledge will ensure that you are taking the best financial approach to your business. ๐Ÿ‘ For instance, through helping you become more tax efficient. Or recommending a useful app that streamlines your processes and will give you a discount for being their client.

After all, it's in their interest to help your business! The more they do that, the more chance you have of continuing a long, fruitful, and mutually beneficial partnership. ๐Ÿ’ช Knowing you need an accountant is the easy part, now you've got to find one!

First Step: Identifying Exactly What You Need.

The first step in finding the right accountant for your business is to identify any specific requirements you will need from them. For example, do you want one that's local who you can meet face to face? Or is it enough for them to just deal with you online? ๐Ÿ–ฅ Do you need an accountant with some industry-specific knowledge, such as property or exporting? Or more of a generalist? 

Also, do you want accountants who will take care of absolutely everything relating to your business finances, or would you rather save money by completing some basic accounting yourself? Perhaps you feel you only need tax advice, or advice on specific changes to the law that affect your operations. 

You may also want to consider if they are technologically savvy. We've written before about the benefits of businesses adopting technology, and the lessons are no different for accounting firms. Are the accounting software & tools they use ones you are already familiar with? Are they able to recommend additional services that will really help you, from the myriad of choices available? โšก

Have they gone digital, embracing the cloud? ๐Ÿ’ญ These days, it is becoming increasingly common to use cloud technology to give your accountant real time access to all the data that they need. A digital accountant will allow you to streamline much of your accounting process. And means you can expand your search area to find the service, and price, that best meets your needs. 

These are just a few of the questions you should be asking yourself before embarking on a search. The answers will help you narrow down your search and allow you to quickly screen candidates.

Next step: Finding the Accountant You Need.

Having answered the questions above (and more), you should have a much clearer idea of what youโ€™re looking for. Now to the search itself. ๐Ÿ”Ž

A good first step is to consult your networks for recommendations. People are unlikely to recommend something they don't believe in, so if someone you know can vouch for an accountant, it'll take much of the anxiety out of the equation.

However, when taking recommendations, it is also important to consider why your contact chose that accountant in the first place. If you're looking for someone with experience in your field - you would have to be wary of any recommendations from businesses very different to your own.

Another area to consider looking is on the websites of finance or accounting software providers themselves. Many of them maintain partner programs that, at the very least, can be a filter for accountants that are well versed in the software you are using. Business directories, industry bodies, and even a very specific web search can all yield a good number of accountant candidates for your business. ๐Ÿค—

Once youโ€™ve narrowed down a short list of candidates ๐Ÿ“, the next step is to contact them (and view their online presence). There are some important questions to ask at this stage, in order to make sure youโ€™ve got the right person for the job. For example, do they have ideas on how to make your money go further? What will they need from you going forwards? How (and how often) will they communicate with you?

Generally speaking, itโ€™s good to chat to a few different accountants and compare their services and fees. But remember, you get what you pay for. Fees should be low on your list of priorities (and only a differentiator when you have two equal services). In any case, a good accountant should be saving you far more than they cost.

Finally, make sure you check any social media ๐Ÿ“ฒ as well as review sites like TrustPilot before making a final decision. Although even the best accountants will likely have some negative reports written by disgruntled customers, a large amount of complaints is definitely cause for concern. One or two is not necessarily a cause for concern, they're something of a fact of life in business. Indeed, the negative reviews, and how they're handled, can be even more instructive than many good reviews. 

Ultimately, finding an accountant should be treated almost like hiring a full-time employee. They'll be an essential part of your business after all, so itโ€™s well worth spending the time finding the right one. ๐Ÿ˜Ž

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