It is depending on your expertise and experience when you start your own firm. Few of us are equally adept at handling the financial aspects of owning a business. Of course, as your company grows, your accounting systems will have to get more intricate.
If you're dealing with your own finances and have a question, remember that as part of their Which? membership, all Which? Trusted traders have unlimited, free access to the Which? Money helpline on 01992 822848. It is open from 9 a.m. to 5 p.m., Monday through Friday, and is staffed by financial specialists who can provide you with one-on-one help on any financial issues.
Check out our guide for tips on whether or not your company should register for VAT, or continue reading for additional information on how to find an accountant.
Selecting an Accounting Firm
You'll need to hire an accountant if you want someone to handle all or part of your accounting for you. But where do you even begin?
You're looking for an accounting firm that can:
- Specializes in your industry or small-business accounting in general – ideally with clientele of similar size to yours. They are more likely to be aware of any regulatory or allowance changes that may affect you.
- All of the services you require are available. Accountants can help with basic bookkeeping, payroll, VAT, personal and business taxes, year-end accounting, and tax returns. Some companies can also assist clients with bank loans, peer financing, and crowdfunding, as well as audits and investment company guidance.
- Is a member of a recognised accounting body, such as the ICAEW (Institute of Chartered Accountants in England and Wales) or the ACCA (Association of Chartered Certified Accountants) (Association of Chartered Certified Accountants).
Organizing the initial meeting
Finding the proper company, like any other professional appointment, necessitates some research. We advise you to:
- Requesting recommendations from your professional acquaintances.
- Making phone calls to at least three companies and visiting with at least two of them in person. Personalities matter – you want to work with an accountant who is professional, personable, and open.
- Before you arrive, you can check your initial meeting for free.
- Ascertaining that you meet the person who will be responsible for your work within the company. They might not be able to attend the initial meeting.
- Inquiring about fees, such as how much they charge and when they are due. You must determine what their costs will cover so that you are aware of what is included and what may result in additional charges. Will they offer a one-year fixed-price contract? If you want to keep your costs low, do everything you can to assist them in doing their work, such as giving information or papers as soon as they want them.
- Anyone can receive a free, no-obligation consultation session with a Business Advice Service (BAS) chartered accountant, according to Clive Lewis, Head of Enterprise at ICAEW (Institute of Chartered Accountants in England and Wales – one of the UK accounting's governing bodies).
- You can contact accountants local to you with a BAS logo by searching the BAS website's “Find an accountant” section and requesting a free meeting.
When it comes to your accountant, there are a few things to keep in mind.
After you've chosen an accountant, they'll send you a ‘letter of engagement.' This is a contract that outlines the terms and conditions of your business relationship with them.
Not just at the end of the year, but throughout the year, your accountant should communicate with you. They are there to assist you in running your business, so don't be scared to use their knowledge. Communication must be two-way: you must inform your accountant of any changes in your business, as well as any problems, costs, and so on.
It's always a good idea to consider whether or not your accountant is giving you with the services you require. If you're unhappy, request particular assistance. You can always switch accountants if the relationship doesn't work out.
