Accountants can provide a wealth of business and tax advice – but choosing the right one to support your business can be a nightmare. Here are eight questions you should put to your potential – or even your current – number cruncher.
Do you understand my industry?
Adding up numbers is one thing, but knowing how a business should perform is another. “Each industry is different, with different metrics and expected benchmarks. An accountant who knows your business can be worth their weight in gold,” says Carl Reader, director at accountants d&t.
Will the way you work match what I need?
Some accountants offer a “partner-led” service, and others just focus on doing it as cheaply as possible. Others will go over and above, helping you look forward rather than backward – and they’ll come at a different cost and level of value. “It’s important to have a full and frank discussion at the outset to clarify exactly what you want from them,” says Reader.
Are your fees fixed?
It sounds obvious, but it doesn’t always happen. Push your accountant for a firm quote, and don’t accept a vague answer. While this might be calculated by referencing their expected time to complete the work, being given just an hourly rate can lead to unexpected bills and you could end up paying more if the work takes longer.
Can technology help?
The way accountants work with their clients has evolved in recent years, moving from more traditional processes and paper-based accountancy to digital collaboration using cloud tools. Paul Onions, product director at IRIS Software Group warns: “Unless this is fully explained to you, it’s unlikely your business will have truly embraced the latest ways of working, despite the clear benefits.”
What does ‘digital first’ mean for my tax filings, and can you help?
“The government’s ‘digital-first’ initiative continues to move forward and no accountant can truly support a business on their journey without embracing digital themselves,” Onions adds. This will ensure your company is reaping the rewards of upcoming legislative changes, such as Making Tax Digital (MTD) (the new law that will introduce compulsory quarterly filings for all businesses from 2019), as early as possible to give you a competitive advantage.
“Right now, the single most important question to ask is ‘how are you preparing for MTD?’ That probably means nothing to you; if it means nothing to the accountant then walk away,” adds Jason Piper, senior manager at accountancy institute ACCA.
How are you regulated?
Qualified accountants who are members of a recognised professional body will be subject to codes of conduct and disciplinary procedures, as well technical exams. “They also have to carry insurance, so not only should issues be less likely, but you’ll have a formal complaints procedure and financial protection if anything should go wrong,” explains Piper.
What are your plans for your business?
At the very least, this question makes sure they’re not planning to retire or emigrate in the next six months. They should be able to demonstrate their understanding of business issues. Having a qualified professional who understands exactly what you’re going through as you grow will be invaluable.
What’s your attitude to tax planning?
This time there probably is a wrong answer: “I’ll do anything to stop the taxman getting a penny.” Of course, paying tax that the law doesn’t require isn’t going to be good business, but an overly aggressive approach to HM Revenue & Customs comes with significant risks. “Try to find an accountant who shares your risk appetite – you’ll both be happier,” Piper concludes.
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