What sort of questions should I ask when choosing an accountant?
When it comes to choosing an accountant, it’s important you choose the right one for you and your business.
You should feel supported, not an inconvenience. You should feel they have yours and your business’ best interests at heart. You should feel they know what they’re talking about. Don’t just go with the first accountant you come across. You should do your research, and ask the right questions…
So what sort of things should you ask an accountant to help you make the right decisions?
Experience and qualifications
First of all find out what experience they have and also their qualifications. Are they members of (a) professional body(ies)? What are their credentials? Can they prove their skills and their knowledge? Can they demonstrate their experience?
One way of finding this out is by reading reviews they have from other small businesses. Either on Google, Facebook, even their testimonials page on their website if they have one.
Have a browse through their social media. Are their clients singing their praises?
Qualifications are quite often also listed on their website and if they are part of a professional body then that logo will appear on their website. i.e. I am part of the ACCA and the logo is featured on my website. (See footer)
You should feel supported, not an inconvenience. You should feel they have yours and your business’ best interests at heart. You should feel they know what they’re talking about. Don’t just go with the first accountant you come across. You should do your research, and ask the right questions…
So what sort of things should you ask an accountant to help you make the right decisions?
Experience and qualifications
First of all find out what experience they have and also their qualifications. Are they members of (a) professional body(ies)? What are their credentials? Can they prove their skills and their knowledge? Can they demonstrate their experience?
One way of finding this out is by reading reviews they have from other small businesses. Either on Google, Facebook, even their testimonials page on their website if they have one.
Have a browse through their social media. Are their clients singing their praises?
Qualifications are quite often also listed on their website and if they are part of a professional body then that logo will appear on their website. i.e. I am part of the ACCA and the logo is featured on my website. (See footer)
How long have they been in business?
Secondly, find out how long they’ve been in business. How long have they been a business owner? This gives you an idea whether they have an understanding of what you face as a small business owner yourself. Do they have a provable track record? If they are new to their own business, find out what previous experience they had working as an accountant for other firms, and if they come highly recommended. You want an accountant that can help you grow your business, it’s not just about getting by.
Do they have references they can share with me?
Thirdly, as well as checking out their reviews, you can also ask for references. What are other companies just like yours saying about them? Do they have proof that they have and are helping other small business owners like you?
Information they may need from me
Fourthly, once you decide on an accountant who you feel is the right fit for you and your business, find out what information they will need from you. As well as finding out when they will need it - maybe a schedule of dates/deadlines.
You will need to find out if/when they will want your receipts, bank statements, and invoices, and also to review your books and business expenses. This can all be simplified by using one of the digital accounting software packages available as this has everything in one place, and this can also be shared with your accountant.
If you haven’t already got anything set up, ask your accountant what they recommend. I highly recommend Clearbooks but there are plenty of others out there too. It’s important that you set yourself up with one if possible, as this will help you in terms of Making Tax Digital which is gradually being rolled out (see my recent MTD Blog)
Secondly, find out how long they’ve been in business. How long have they been a business owner? This gives you an idea whether they have an understanding of what you face as a small business owner yourself. Do they have a provable track record? If they are new to their own business, find out what previous experience they had working as an accountant for other firms, and if they come highly recommended. You want an accountant that can help you grow your business, it’s not just about getting by.
Do they have references they can share with me?
Thirdly, as well as checking out their reviews, you can also ask for references. What are other companies just like yours saying about them? Do they have proof that they have and are helping other small business owners like you?
Information they may need from me
Fourthly, once you decide on an accountant who you feel is the right fit for you and your business, find out what information they will need from you. As well as finding out when they will need it - maybe a schedule of dates/deadlines.
You will need to find out if/when they will want your receipts, bank statements, and invoices, and also to review your books and business expenses. This can all be simplified by using one of the digital accounting software packages available as this has everything in one place, and this can also be shared with your accountant.
If you haven’t already got anything set up, ask your accountant what they recommend. I highly recommend Clearbooks but there are plenty of others out there too. It’s important that you set yourself up with one if possible, as this will help you in terms of Making Tax Digital which is gradually being rolled out (see my recent MTD Blog)
Can they help me with my tax?
One of the biggest areas you will need help with in business is Tax, so make sure you find out how they can help you with your tax. Not only with the general paperwork etc. but also making sure you’re only paying the tax you need to and letting you know of anything you may be doing wrong, or claiming wrong, so you don’t get into trouble with HMRC.
How/when/how often can we communicate?
As you will already know in business, communication is key. Before you even start with a new accountant, agree on how you will keep in touch. Find out their preference, tell them your preference and come to an agreement. Email, phone call, video call… however you both find it easier to communicate, just make sure you do.
Building towards my goals.
Can I achieve my goals? It might seem like the sort of question you would ask a business coach, rather than an accountant, but a good accountant should know if the goals you have set for your business are achievable. Even if they don’t think they are, they should then be able to help you take steps in the right direction and show what you can do instead to get you where you need to be to succeed.
Am I making any mistakes?
Another question you should always be able to ask your accountant is if you are making any errors in how you are keeping records/claiming expenses/doing your taxes etc. The mark of a good accountant is when they can address any issues you may unknowingly have, as soon as they notice.
One of the biggest areas you will need help with in business is Tax, so make sure you find out how they can help you with your tax. Not only with the general paperwork etc. but also making sure you’re only paying the tax you need to and letting you know of anything you may be doing wrong, or claiming wrong, so you don’t get into trouble with HMRC.
How/when/how often can we communicate?
As you will already know in business, communication is key. Before you even start with a new accountant, agree on how you will keep in touch. Find out their preference, tell them your preference and come to an agreement. Email, phone call, video call… however you both find it easier to communicate, just make sure you do.
Building towards my goals.
Can I achieve my goals? It might seem like the sort of question you would ask a business coach, rather than an accountant, but a good accountant should know if the goals you have set for your business are achievable. Even if they don’t think they are, they should then be able to help you take steps in the right direction and show what you can do instead to get you where you need to be to succeed.
Am I making any mistakes?
Another question you should always be able to ask your accountant is if you are making any errors in how you are keeping records/claiming expenses/doing your taxes etc. The mark of a good accountant is when they can address any issues you may unknowingly have, as soon as they notice.
Being prepared for the tax season
Being prepared for the tax season is also important. Not only should your accountant file your tax return etc. for you, but they should also be willing to help you, give you advice, let you know of any industry specific regulations you might not know about, and just generally help you keep up to date with your financial records throughout the year.
Can they answer the hard questions?
How an accountant answers your questions - especially the harder, more industry relevant, or questions specific to your own circumstances - is also of great importance. This shows the depth of their knowledge, experience and understanding, and can give you the confidence in them, and how they will handle your accounts.
Can they advise me on my business structure?
Lastly, a business will grow and change over time. While you might start out as a sole trader, it may be that due to the way your business has changed it might be worth your while becoming a limited company. This is something you should be able to ask and discuss with your accountant as they will know what the best business structure is for you at that moment in time.
As an accountant, I would expect you to do your research before taking me, or any other accountant on, and I hope these questions and explanations help you in making that decision.
Being prepared for the tax season is also important. Not only should your accountant file your tax return etc. for you, but they should also be willing to help you, give you advice, let you know of any industry specific regulations you might not know about, and just generally help you keep up to date with your financial records throughout the year.
Can they answer the hard questions?
How an accountant answers your questions - especially the harder, more industry relevant, or questions specific to your own circumstances - is also of great importance. This shows the depth of their knowledge, experience and understanding, and can give you the confidence in them, and how they will handle your accounts.
Can they advise me on my business structure?
Lastly, a business will grow and change over time. While you might start out as a sole trader, it may be that due to the way your business has changed it might be worth your while becoming a limited company. This is something you should be able to ask and discuss with your accountant as they will know what the best business structure is for you at that moment in time.
As an accountant, I would expect you to do your research before taking me, or any other accountant on, and I hope these questions and explanations help you in making that decision.
Sonya is a qualified and experienced chartered accountant, with over 20 years general practice experience. She is registered with the ACCA, has professional indemnity and public liability insurance.
Sonya covers areas like general accountancy, booking keeping, business start-ups, tax planning, self-assessment, corporation tax, VAT, company formation, company secretarial, and tax enquiries and investigations.
She has worked with many business start-ups, and has a wide knowledge plus years of experience with new businesses and all the things setting one up entails, especially from a financial and tax perspective.
Sonya is also part of Handpicked Accountants which is a nationally recognised platform and a leading local provider of accountancy services to businesses and start-ups across Ribble Valley, Lancashire, and Yorkshire.
“Running your own small business means you are expected to wear many hats. As finance and tax matters are not one of my strengths (!) it made total sense to let someone else manage this for me (allowing me to focus on actually running my business). Sonya is so approachable, helpful, always there to answer questions and provide support as needed. I can highly recommend her.” Jo from Little Biz Marketing UK
If you have any questions for me about choosing an accountant, or any other accounting needs, you can contact me here.
Or if you'd like regular tips and advice then you're welcome to follow me on Facebook and/or Twitter.
Sonya covers areas like general accountancy, booking keeping, business start-ups, tax planning, self-assessment, corporation tax, VAT, company formation, company secretarial, and tax enquiries and investigations.
She has worked with many business start-ups, and has a wide knowledge plus years of experience with new businesses and all the things setting one up entails, especially from a financial and tax perspective.
Sonya is also part of Handpicked Accountants which is a nationally recognised platform and a leading local provider of accountancy services to businesses and start-ups across Ribble Valley, Lancashire, and Yorkshire.
“Running your own small business means you are expected to wear many hats. As finance and tax matters are not one of my strengths (!) it made total sense to let someone else manage this for me (allowing me to focus on actually running my business). Sonya is so approachable, helpful, always there to answer questions and provide support as needed. I can highly recommend her.” Jo from Little Biz Marketing UK
If you have any questions for me about choosing an accountant, or any other accounting needs, you can contact me here.
Or if you'd like regular tips and advice then you're welcome to follow me on Facebook and/or Twitter.
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