Running a business is a challenging, full-time job with big responsibilities and demands. One of the biggest headaches can be accounts management. The phrase "tax doesn't have to taxing" is quoted frequently, but for most people it is. While it's certainly feasible to manage your own accounts, many businesses hire an accountant. This not only saves a lot of stress, it frees up more time to devote to business matters. So what are the factors involved in finding a good accountant?
Why Hire an Accountant?
Finance is a complex area so it's prudent to have someone well qualified to take care of it. Chartered accountants study for years and gain plenty of experience before they qualify.
Once qualified, they continue to hone their financial knowledge and skills through compulsory continuous professional development, which keeps them up-to-date on ever changing rules and regulations.
How to Find an Accountant
The first step is to get referrals from people you know and trust. Talk to family, friends, financial advisors and other business owners who are not in direct competition with you, or anyone who has a similar financial situation. Word of mouth and a good referral speaks more about an accountancy firm's abilities and services than promotional material, so build up a shortlist of potential firms.
Next, conduct short telephone interviews to gather some basic information:
- What services do they offer?
- What are their qualifications?
- In what areas do they specialise?
- How long have they been in business?
- What is their ongoing education policy?
- What do they know about your area of business?
- What are their fees (do they charge for e-mails and phone calls) and payment options?
- Will you start on a trial basis?
- Can you provide references?
Outline your requirements and ask what they can do for you. You should end up with a simple but comprehensive list.
Pick 2-3 firms that meet your requirements and arrange face-to-face meetings. A good accountant should reply promptly and be flexible for meetings. At the meeting, discuss in detail where your company is going, and what you expect from an accountant.
Good accountants do more than crunch numbers. They listen carefully to business owners, analyse a business, identify areas which could be improved, and offer advice on financial matters such as tax, budgeting, raising finance, and financial planning, so take note of how forthcoming your interviewees are with suggestions to improve and maintain the financial health of your business.
Make your final selection based on the answers to your questions you were happy with, and any additional services that will help your business grow or meet future challenges.
Relationship With an Accountant
A business's relationship with an accountant is a lot like a marriage. Trust and discretion are crucial to a healthy and long-lasting association, as is approachability and professionalism, so it pays to be as informed and comfortable as possible with your choice.
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