Monday, August 15, 2011

Five Tips For Selecting An Accountant.

By Peter Innes


Anyone that has started their own business understands that when you first start out you usually end up doing everything yourself This includes everything from invoicing to tidying the office as well as doing all of the paid work as well.

As your business grows you get to the point where you can't carry out all of these tasks yourself and if you want to continuing to grow you need employ the services of other people. An accountant should be the first person that you think about hiring but choosing the right accountant for your business isn't as easy as you might think. Here are a couple of things to think about before you make your choice.

Ensure that the person you hire has the right qualifications. There are many people who will offer to do your bookkeeping for you and on the surface they may be able to to carry out a good job but you can never be 100% certain how good a job they have done until the Inland Revenue ask to look at your books. When this happens you really want the assurance of knowing that the person preparing you accounts is qualified and that they are up to date with all of the current tax laws.

choose someonethat you can have a good business relationship with. When you start searching around you can find a divide in the type of accountants you are able to find. One one side will generally be the larger accounting firms where you generally don't speak to the same person twice. On the other side will be the small accounting firms that tend to deal with businesses in their local area. The more personal attention that you receive from a smaller accounting firm often suits a small to medium sized business better. This is because it is often easier to build up a strong working relationship between businesses of similar sizes.

Ensure that whoever you choose, they are someone who understands how your business works. You normally find that with larger accounting firms, they tend to specialise in certain areas of business. Smaller accounting firms tend to have a wider experience in dealing with different business types. Ensuring that your accountant knows how your business operates is essential to them being able to carry out a good job for you so make sure that your accountant understands your industry and business set-up.

Select an accountant that offers a comprehensive range of services. There is much more to accounting than just bookkeeping and at a basic level your accountant should be able to file your tax returns with the Inland Revenue, prepare your financial statements and if the need arises they should be able to present all of the relevant documentation for auditing. Some accountants offer additional services such as keeping track of your business performance and helping with your business planning, they can also work along side and support your management team.

Always ask questions before selecting and accountant nd make sure that you interview several accounts. Always compare the services that you get for the money that you are paying and compare a few accountants like for like. Check to see if they already have clients in your area of business and see how deep there understanding of your business is.




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