Finding the right accountant
Finding the right accountant for your business can be a critical matter. A good accountant will save you time, money & peace of mind so it's worth approaching the matter with caution.
Here are a few points for small business owners to consider when searching for an accountant:
1.) Referals
Referrals are usually a good indication of quality. Ask for referals from trusted business contacts or friends. You can also seek recommendations from Incubator managers &/or professional networks that you belong to.
Alternatively, there are a number of professional associations that can provide you with a list of local accountants:
- ACCA (The Association of Chartered Certified Accountants)
- CIMA (Chartered Institute of Management Accountants)
- ICAEW (The Institute of Chartered Accountants in England & Wales)
2.) Suitably qualified
There are no license requirements for someone in the UK to describe himself or herself as an accountant (except in the areas of audit or insolvency). So make sure that your accountant has the appropriate hard-earnt qualifications! For a start, chartered accountants have the letters ACA or FCA after their name, chartered certified accountants have the letters ACCA or FCCA and chartered management accountants have the letters ACMA or FCMA.
3.) Size & sector
Establish whether your prospective accountant has experience of dealing with your business sector. Ideally, your accountant will also be used to dealing with businesses of a similar size & at a similar stage of growth as your own.
4.) Define your needs
Make sure your accountant can provide the type of support you need. First-time businesses may require plenty of support across a range of areas such as record keeping, tax reporting, financial reporting and plain advice. Old-timers generally require less assistance & tend to keep the books themselves or find a bookkeeper. At the introductory meeting with your accountant, take along a copy of your business plan & discuss which areas you will need support in.
5.) What will you get for your money
Find out exactly what you're going to get for your money. If you're dealing with a firm, who exactly will be doing the work? What will be their response times? Will they charge hourly rates (if so, will these rates vary according to who does the work?) or fixed fees? Avoid unpleasant surprises!
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