How To Find A Great Accountant
Hey there!
This is a topic that I get asked about ALL the time. How do I find a great accountant?
Well as I used to be one so as you can imagine I have a few thoughts!
What does an accountant do?
I want to start by answering this question.
Most (not all) accountants focus on making sure that you are filing everything that you need to and making sure that you pay the right tax. All very important things of course but if you are looking for one that is also going to be a friendly ear that offers advice and input about growing your business make sure that you choose one that offers that service. Remember that this will be more expensive than them just doing the end-of-year work!
Choose one that is qualified
The word accountant is not protected in the UK. I’m not saying that all unqualified accountants are not good at what they do but if you are unsure where to start a qualification gives you some assurance.
If they are qualified they will likely be a member of a professional body which also means they will have insurance and guidelines and you’ll have someone to go to if you have a complaint.
In the UK look for accountants that are members of:
ICAEW - Institute of Chartered Accountants in England & Wales
ACCA - Association of Chartered Certified Accountants
ICAS - Institute of Chartered Accountants of Scotland
Chartered Accountants Ireland
AAT - Association of Accounting Technicians
Do not be scared of your accountant
I have to say this because so many people have told me that going to visit their accountant is like being called into the headteachers office when you are in trouble! Who wants that??
Your accountant is a person just like you! They might be good at spreadsheets and numbers but there are things that you are great at that they suck at. Remember this.
IF your accountant makes you feel inferior or uncomfortable - get a new one, life really is too short to deal with d*cks.
Find someone that you would happily have lunch with
It's likely that you will spend many years working with this person. If you don’t feel comfortable enough that you’d happily spend a few hours over a lazy lunch, then you probably won’t call them first when you need to chat something through. Especially if it’s your latest crazy idea!
The thing is there are somethings that you won’t think to tell your accountant about but if you can enjoy a conversation with them, they’ll pick up on stuff that you hadn’t even thought about.
Get clear about what you want and need
Not all accountants are the same, some just do the stuff that has to be done (the boring paperwork, tax returns and accounts) and some do advice too. It's important to be clear on what it is that you are looking for and what style suits you - if you are someone who likes a chat but they only ever use email - probably not your person. Just saying.
Don’t go to the butchers to buy flowers
This is one of my coach’s sayings. What I mean by this is, make sure that what you are going to your accountant for is something they can provide.
I’ve added a list of things that you might want below so you can think about it before you go
Most accountants are not trained in dealing with the emotional side of money. If you need emotional support with your money and finances for whatever reason, consider seeking a coach or a mentor or book in with me! I was an accountant for 20 years before I started mentoring.
Here are a list of questions that may be useful
You may not need all of these but you can pick and choose what works for you. Imagine that you are interviewing for a job and that you are looking for someone who impresses you and you know will make you feel supported.
Do you work with other businesses in my niche? How many?
Can you provide references from other customers?
How do you charge - fixed fee or by the hour?
Can you provide an estimate of your fees?
Do you charge extra for phone calls?
How many times a year will we meet to review how the business is doing?
Do you teach and educate or just do it for me?
How often will you communicate and how?
Will you remind me what tax needs to be paid and by when?
Do you provide advice on pricing, margins, and profitability?
How often will you review my accounts to make sure that I am claiming all the deductions that I can?
Can you help me set up simple systems to keep on top of my finances?
Do you require me to use a particular accounting system?
What are your working hours?
What is your standard response time to emails/telephone calls?
Will I have a dedicated person who I deal with?
I am a new business, can you advise me on the best structure for me?
How many people work in your organisation?
Will you let me know when I need to register for VAT?
Are you a new business owner?
If you have never run a business before I recommend that you get advice from somewhere about getting started. That doesn’t have to be an accountant. A quick internet search of start-up advice will bring up lots of sources. Start with the ones run by local authorities as these are often free.
It’s also worth noting that many accountants offer a free initial consultation. Prepare for this, do some research, and go armed with your questions. You don’t HAVE to sign up with them if they aren’t a good fit.
I mean don’t just go accountant hopping for more and more free advice, you wouldn't like it if someone did that to you but do meet a few to make sure that you have the RIGHT one for you
Accountants v Bookkeepers
An accountant is NOT the same as a bookkeeper. The bookkeeper’s job (or yours, if you are doing it yourself) is to keep a record of all of the income and expenses of your business. If you don't do this you will need to pay additional fees to your accountant for this bit and they may not be the cheapest. The accountant’s job is to pull together the figures and put them in the right format for reporting and calculating your tax bill. Of course, they can provide other services, which is what you need to get clear on.
What services your accountant could provide
Now, this isn’t an exhaustive list. It's to give you an idea of what you might be looking for and what is available to you.
This list is aimed at UK businesses particularly but most things will have an equivalent in any country:
✅ Year-end accounts
The ones that you have to do to file with the authorities and to calculate your tax bill.
✅ Your annual tax return
Calculating your tax, filing your return, and letting you know how much you owe.
✅ Tax payment reminders
Reminding you how much tax to pay, when and how to pay it.
✅ Annual confirmation statement (Companies Only)
Annual confirmation of the details held on record about your company at Companies House.
✅ Payroll Services
Calculating and filing the payroll reports for your business. If you are a director of a company you are also an employee.
✅ Company set up
Incorporating a company, setting up your tax records, your payroll and if needed your VAT registration
✅ Filing your VAT returns
Checking your figures in your accounting system and filing the VAT returns with HMRC
✅ Letting you know when you need to register for VAT
Keep an eye on your accounts and let you know when you need to register.
✅ Monthly/Quarterly Reporting
Providing you with a monthly/quarterly report of how your business is doing. If you want to have this, think about what it looks like for you.
You will need to make sure that your records are up to date each month.
Do you understand the reports or do you also want a written summary, a graph, or a telephone conversation so that you are clear? It’s no good paying for the reports if they don’t mean anything to you and don’t help you run your business!
✅ Business Plans
Do you need to raise finance for your business or get a bank loan? Will the accountant help you put together a business plan? Is this included or how much will it cost?
✅ Research and Development
This is an area where tax relief is available if the work you are doing is considered innovative. Do they cover this, will they advise you if it’s worth going for a claim? (Some accountants outsource this specialist area and if that’s the case you need them to let you know when to seek a claim.)
✅ General Advice
Can you call or email them whenever you want to ask a quick question? No questions should feel stupid, questions are only easy when you already know the answer!
Good luck, finding a great accountant can REALLY make a HUGE difference to your business!
Hi there, I’m Gail Bainbridge. I am a Small Business Money Expert. My blogs contain advice that I believe is helpful to small business owners in running their businesses. I hope you find them useful!
If you have a question thats more specific or you want advice tailored to your business I run Small Business Money Club where you can get my expert one to one advice and support for your small business every week.