Useful tips for hiring an accountant for a small businessby Benny Gala DNS Accountants
Whether you've had a difficult Self-Assessment season, have been spending far too much time on bookkeeping, or simply want to manage your business finances more effectively, you could decide the time has finally come to hire an accountant – but where to begin? You may be unaware of the significant impact of hiring small business accountants on your business. Here are some of the tips which could help you hire the perfect accountant for your business –
1) Ensure that the accountant is a good fit for your business - Determine that the accountant you choose is familiar with the industry in which you operate and the size of your organisation. Hiring an accountant who specialises in pubs is pointless if you are an IT contractor. Similarly, avoid hiring small business accountants who are specialised in large businesses if yours is a small firm as your requirements will be much different.
2) Choose an accountant whose expertise goes beyond number crunching – Select a personal tax accountant who is both proactive and reactive. Someone who can advise you on how to save tax in a legal and ethical manner, for example - Someone who would recommend and teach you how to use appropriate accounting software for your business, not someone who will calculate the numbers and spit them out.
3) Choose a certified or chartered accountant – CA’s are highly trained professionals who have completed additional education beyond a degree level, as well as job experience and a professional competency programme. Professional and qualified small business accountants can immediately offer value to your organisation. If you expect your business is growing, it's a good idea to hire a professional accountant earlier rather than later.
4) Choose an accountant who will act on your behalf - Select an accountant who will represent you with HMRC. This could possibly save you a lot of difficult conversations, as your accountant can communicate with HMRC on your behalf.
5) Look for an accountant with relevant experience - You'll want to hire someone who has experience preparing tax returns and financial documents for companies with similar size and revenue to yours. If your organisation relies heavily on cloud-based software, you'll undoubtedly want someone familiar with cloud computing.
It's even better if they've worked with companies in related market sectors to yours, as this will assist them better understand your company’s specific requirements.
6) Use social networks - When it comes to hiring an accountant, the ideal candidate could be right in front of you. Begin by asking friends and family members who own small businesses for recommendations on an accountant. If that is the case, why? And if not, what is the reason? The answers to both questions may prove helpful later on when the time comes to interview candidates.
Bear in mind that selecting an accountant is a complex matter; what works for your best friend's public relations business may not work for your manufacturing company.
7) Hire someone who can save your business money - While some small business accountants will simply manage your accounts and make preparations for your tax returns, the best accountants are proactive. Therefore, before hiring a personal tax accountant, ask some suggestions on how they could do cost or tax savings for your business. For example, what percentage of your operating costs do they believe you can deduct from your tax liability? Is it possible to deduct a portion of your phone bill, car expenses, and possibly even rent or mortgage payments as a sole trader or consultant? What are the implications of such an action? Your accountant should alert you with potential pitfalls. For example, using your home as a business location may result in a tax charge on the house upon sale! You need a personal tax accountant who is intimately familiar with the details of tax law and can save you money legally.
8) Identify what accounting software that the accountant uses
Accountants frequently have a preferred accounting software programme. They're likely to have been in business for a long period of time and may have developed a preference for a particular brand of software.
This can be a problem. If your company uses a different type of software, there may be issues with data sharing. While exporting and importing data in a suitable format, the process can be lengthy and prone to errors.
Therefore, seek an accountant who uses the same software as you. Alternatively, one who is willing to do so. There is no reason they cannot uses various types of accounting software for various clients. This is particularly true if the software is user-friendly.
Created on Jun 15th 2021 06:14. Viewed 170 times.