The Little-Known Factors You should Consider when Choosing an Accountant
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- June 05, 2020
- By Michael Williams
- in Business
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When you are searching for an accountant who can help you with your business, you may already have a good idea of what to look for, and this would include finding someone who has the right skill and experience, especially in your industry, and finding someone who can, of course, help you with all your financial paperwork. You may also know that it’s essential to find an accountant who may be able to help you save on your taxes and even expenses and someone who has experience working with companies in the same industry or with the same size. But what else should you seriously think about when it comes to selecting your accountant? Other factors matter as well. Here, then, are the little-known factors you should consider when choosing an accountant.
- Decide on their workload
One way you can maximise your use of your accountant (and maximise their time, since they will most likely charge you by the hour) is to decide on the amount and level of workload you will give them from the beginning. Of course, a good accountant, especially a chartered accountant from a firm such as www.gsmaccountants.co.uk, will already be able to help you with basic tasks such as bookkeeping and filing your tax returns, but if you would really like to optimise their skill, it would be best if you can have someone in your business handle this and let your accountant handle more complex tasks. If your accountant is simply doing data entry for you, this isn’t a good way to harness their skills. It would be best if you take charge and get more value for your money by letting the accountant handle such accounting elements as reconciling your bank accounts, filling out and filing your taxes, handling your payroll and calculating your capital depreciations and assets, amongst other essential tasks.
- Choose someone who can save money for your business
Another little-known consideration when choosing accountants is how they can actually save money for your enterprise. Often, we are too distracted by other qualifications and requirements that we fail to realise that our accountants can also save us money. How so? They can do this by figuring out what percentage or portion of your operating expenses you can offset against your tax liability. If you are a consultant or a sole trader, you can also offset a certain percentage of your car expenses, telephone bill or even mortgage or rent payments.
Prior to choosing one, ask them if they have any suggestions on how you can save money. A proactive accountant should be able to offer different recommendations based on the kind of business you have, and whatever costs you incur hiring them can then be more than worth it. Keep in mind, though, that your accountant should make sure that everything is legal and above board, and they should also know the difference between tax evasion and tax avoidance.
- Perform a background check
Nowadays, you can always find some information about an individual or an entity over the Internet, and it’s best for you to do so with your accountant as well. Try to perform a background check and ask the accountant if they can give you a list of references. A good accountant will have a list you can check, and this is also a good way to ascertain if they are genuine.
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