Whether you want to move away from your current provider or you’re setting up a new business and have never had an accountant before, it’s not a decision that can be rushed into – not if you want to get the most out of having one.
What to look for
Accountants do more than just filing taxes; a good quality accountant will be able to find ways to help you grow your business, minimise tax liabilities and make sure that you remain as profitable as you can be.
Each company’s accountancy needs are unique and it’s vital that you identify what these needs are. We can help with all this, and more, by having a quick and free consultation with you to find out enough about your business and your requirements to match you with an accountant they believe will be a good fit.
Below are some of the main services that an accountant can offer that you may consider when deciding your criteria.
As the current turnover threshold for an audit to take place is £6.5 million, limited liability partnerships and other companies that meet this mark will at some point require an audit to take place. It is important to have a qualified accountant that can offer independent, impartial advice on the auditing process.
Value added tax is tax due to HMRC on sales of goods and services rendered. Any business with an annual turnover in excess of £82,000 must register for VAT and report (and pay, if applicable) it quarterly to HMRC.
Regardless of your experience in payroll accounting and payroll management, as an employer you are expected to have full knowledge of your obligations. The cost of falling foul of these laws and obligations can be costly to your business, not only in terms of potential penalties that could be levied on you, but also the time that will be taken up in dealing with an enquiry from any number of different government bodies.
Keeping up-to-date and accurate company books is a must for any company, no matter its size. Company law requires directors to prepare financial statements annually. They are responsible for keeping accounting records that sufficiently show and explain the company’s transactions, and disclose with reasonable accuracy its financial position at any time.
Income Tax Support
Some of the many benefits to having support from a chartered tax advisor include being able to reduce your tax burden. They can also help with any business disputes, clear up any confusion over tax codes, or simply offer long term strategic advice. Having this support can be invaluable in making you aware of things you may have never considered, such as claiming R&D tax credits which are worth an average of £46,000 per year for qualifying businesses!
As well as all of the above, some accountancy firms will be able to offer more specialised services depending if they are industry specific or not. For example, an accountant who is experienced with working within the contracting sector will be able to help with reviews of IR35, legislation that was put in place to ensure that contractors aren’t taking advantage of being on a PAYE scheme without paying the full national insurance and PAYE taxes.
Bear in mind that there usually is an additional charge for any specialised services.
What costs to consider
Extra fees for industry specific services aside, the cost of hiring an accountant predictably varies depending on whether you go for an independent practitioner or a large firm. For a lot of companies, particularly those just starting out, it’s definitely tempting to choose what seems like a cheaper accountant but this doesn’t necessarily mean you will save any money. The service you receive will be proportionate to what you pay, meaning that it will likely be generic rather than tailored to what you truly need, and the length of time you spend waiting to hear back could be lengthy.
That being said, choosing the most expensive firm doesn’t always guarantee you the best service either.
The wisest thing to do is to be as cost effective as possible, which means taking a lot of factors into consideration such as location, industry, and qualifications and making a decision accordingly. Once you find one, a good accountant could end up saving you more money than they cost you.
You can call yourself an accountant without any prior experience or qualifications, but our panel of accountants for small-to-medium and brand new businesses are all qualified certified chartered accountants. This means that they hold a current practicing certificate, which ensures that indemnity insurance is in place and that there are governing bodies to deal with complaints. Many of these firms will also have Chartered Tax Advisors in-house who will be able to provide relevant and quality tax advisory services for your business.
You wouldn’t hire a non-qualified mechanic or electrician to work on your house – why would you treat your business finances any differently?
Simplifying the process
By now, it’s likely crossing your mind just how much work it is finding the right accountant for your company. Instead of letting this realisation fill you with dread, get in touch with us and we’ll do the hard work for you.
Our panel of trusted accountants who work across various industries and all over the UK numbers over 100, so we’re confident we can find someone to fit the bill. There is no fee for a consultation, so you can rest assured that the service you receive is top notch, and our wealth of knowledge means we can easily take the hassle and confusion out of the process of choosing an accountant.
For more information, give us a call on 0207 0019143 or fill in the form below.