Finding the right accountant for your business is essential to its financial health and long-term success. As small businesses in the UK continue to grow—according to the Federation of Small Businesses (FSB), there were over 5.5 million small businesses in the UK as of 2023—it’s important to ensure that your financial affairs are handled professionally. Here are things to consider when looking for an accountant for a business in 2024.
Expertise in Your Industry
Not all accountants are equal, and one of the first things you need to look at is whether they have experience working within your industry. Different sectors have unique regulations, tax implications, and bookkeeping requirements. For example, construction businesses deal with different VAT schemes than retail businesses, and an accountant who knows the ins and outs of your specific industry can save you time and money. When vetting accountants, ask if they have other clients in your sector and how familiar they are with industry-specific financial regulations.
Accreditation and Qualifications
It’s crucial to ensure that the accountant you choose is properly qualified and accredited by professional bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW), Association of Chartered Certified Accountants (ACCA), or Chartered Institute of Management Accountants (CIMA). These organisations uphold strict ethical and professional standards. Choosing a certified accountant not only ensures competence but also provides peace of mind that your business’s finances will be in capable hands.
Services Offered
Accountants can offer a wide range of services, from simple bookkeeping and tax returns to financial advice and business forecasting. Before choosing an accountant, think about what you need from them. If you’re just starting out, you might only need someone to help with annual tax returns. As your business grows, you may require more services such as payroll management, tax planning, and advice on expansion. Ensure the accountant offers services that can grow alongside your business, so you don’t need to switch firms later.
Use of Accounting Software
The use of technology, particularly accounting software, is crucial in today’s business world. Cloud-based accounting tools such as Xero, QuickBooks, and Sage allow real-time access to financial data, enabling better decision-making. Ask your potential accountant whether they use such software, how familiar they are with it, and if they can train you or your team to use it. Some accountants even offer access to these tools as part of their service package, so you don’t have to purchase them separately.
Communication and Availability
Running a small business often means dealing with financial issues on the fly, so having an accountant who is readily available to answer questions and provide advice is critical. Ask about their communication style and how quickly they respond to queries. Whether they offer regular updates or only check in during tax season, understanding how frequently they will communicate with you is important. Some firms provide dedicated account managers, while others might use a team-based approach.
Transparent Fees
Accountancy fees vary greatly depending on the services provided, so it’s essential to be clear on pricing from the outset. Some accountants charge by the hour, while others offer fixed-fee packages. Discuss the fee structure before signing a contract, and make sure you understand exactly what is included. For example, will they charge extra for phone calls or emails, or is that included in the package? A clear agreement on fees can help avoid misunderstandings later on.
Business Size and Compatibility
Make sure the accountant is suited to the size of your business. Some firms specialise in working with large enterprises, while others focus on small or micro businesses. It’s vital to ensure your accountant can provide the appropriate level of support based on your current needs. Additionally, there should be a good cultural and professional fit between your business and the accountant. Building a trusting relationship is essential for smooth collaboration.
Location: Local or Remote?
While it’s increasingly common for businesses to work with accountants remotely, you may still prefer face-to-face meetings, especially when discussing sensitive financial matters. Decide whether proximity is important to you. A local accountant can be particularly useful if you prefer in-person consultations or if your business has location-specific tax or legal requirements. On the other hand, many accountants now operate effectively using online platforms, so location may not be a barrier.
Proactive Advice and Growth Mindset
Your accountant should do more than just crunch numbers; they should also provide proactive advice to help your business grow. An excellent accountant will keep you informed about tax-saving opportunities, new financial regulations, and ways to improve cash flow. If your business plans to expand or diversify, your accountant should be able to offer strategic financial advice to support that growth.
Referrals and Reviews
Finally, check the accountant’s references, online reviews, and reputation within your local business community. Word-of-mouth recommendations can provide valuable insights into an accountant’s reliability, professionalism, and client service. Don’t be afraid to ask for client testimonials or examples of how they’ve helped other small businesses thrive.
Choosing the right accountant for your small business requires careful consideration of their expertise, qualifications, services, and communication style. With the right accountant on your side, you’ll not only ensure that your financial records are in good hands but also receive the advice and support needed to help your business grow. Properly vetting your accountant is an investment in your business’s future success.
