This sounds like a really, really boring subject, I know. But I repent not and I ask, nay implore you to read on… like an over zealous squirrel gnawing away at a mundane nut. For he knows that, through the boring gnawing he shall eventually taste the sweet essence. Or something along those lines! For snore inducingly boring as it may be, your
choice of accountants could well be one of the most important choices that you make this month. So make sure that you do your research.
Are you a business or an individual?
This might be a trick question, as you could well be a freelancer. But it is really important to understand that some accountants that are fantastic at managing the finances of individuals are the binary opposite at managing the finances of businesses. Have a frank discussion with all of the accountants (whether they are contractor accountants, large business accountants, or personal accountants) that you are considering and ask them whether they specialise in one, the other, or both.
How many clients do they have per accountant?
This seemingly obvious question is very often overlooked. My brother runs a business that creates luxury computers. He hired an accountant that he was very happy with… so much so that he recommended him to me when I set up my own business. I went for a meeting with the chap. His price seemed competitive, the depth of his knowledge adequate and his personality, well, perfectly personable. I agreed to become a client at a set rate. But the old boy never emailed me back. To me, this said that he was not interested in the sale. And if he is not interested in the sale… what would he be like when he had gotten the sale?
I later found out from my brother that the accountant had taken on too many clients and was simply unable to cope. Consequently, even my brother left. So, in short, make sure that your accountant has enough time to give your account the attention that it will need. If he or she has too many clients, you may well get left behind.
Are they well priced?
Don’t go straight for Deloitte. Yes, they are fantastic accountants, but they are also extremely expensive. Put simply, unless you are a really large business you just don’t need them and, you may find that the vanity of hiring them causes you some serious financial stress. And an accountant is supposed to alleviate that financial duress… not contribute to it. At the same time, if they seem too cheap, that is possibly because they are either not very good or not intending to pay too much attention to your account. I personally find that the magic spot is usually somewhere in the middle of cheap and expensive: this is where good quality and good price meet. But make sure that you understand what it is that you are paying for. If you are a business you will need them to be able to, if necessary, manage your Payroll, keep your books in order, arrange your VAT payments, sort your end of year tax, do your financial forecasting and profit and loss sheets as well as give you good old fashioned financial advice. For a personal accountant they will need to be able to advise you ontax related issues and loans and mortgages as well as being able to file your tax returns.
Remember: research is your best friend. Use Google, ask friends or other businesses for any recommendations and do not be afraid to ask questions. Find someone that you are comfortable with and then build a great working relationship. Good luck!