Choosing an Accountant | 11 Questions to Ask

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11 Questions You Need to Ask Before Appointing An Accountant A Good Accountant will: 

Save you time and money

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Offer advice to help your business grow

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Take care of everything for you so you can get on with what you do best!

CHOOSING AN ACCOUNTANT

Are you thinking of changing accountants?

Perhaps you are a new business owner and are looking to appoint an accountant for the first time?

Either way, there is no doubt that choosing an accountant is one of the most important decisions you will make when it comes to your business.

It's tempting to 'do it yourself' when it comes to your business finances, particularly if you are just starting out. However whilst you may be a specialist in your field, it's unlikely that you are an expert in all things tax and accounting too.

For many, the DIY approach can often prove much costlier than investing in an accountant to take care of it all for you, from your PAYE, to taxes, annual returns and more; so it's important to ensure you choose an accountant you can trust.

You wouldn’t ask a milkman to fix your car...

During the past few years in practice we have come across many excellent accountants who consistently do a great job for their clients, however there are almost just as many who, unfortunately, give the rest of us a bad name.

So how can you be sure that you protect yourself and your business from bad service and bad advice that can all too often lead to unexpected tax bills and investigations?

Just like when choosing a new member of staff, it’s important to ask the right questions when choosing an accountant. You need to choose one that you can know, like and trust, so we have put together a straightforward guide to those all-important questions you need to ask a prospective accountant.

www.avantitaxaccountants.co.uk

CHOOSING AN ACCOUNTANT

1

What qualifications do your firm’s Principles hold?

We are often asked what the difference is between ‘Certified’ and ‘Chartered’ status. The former being the status that Avanti Tax Accountants holds.

The truth is that when it comes to defining how qualified an accountant really is, there isn’t much difference at all. Aside from situations where your company needs to be audited, you will receive no additional benefit from choosing a Chartered (and often higher fee-charging) firm.

Holding Chartered Status does also not automatically mean that they are also trained to do Tax work.

Are the principles of the firm ‘Tax Accountants’, ‘Accountants’ or ‘Tax Advisers’?

It’s important to distinguish between them in order to identify whether they are able to assist in both Tax and Accounts - rather than needing to sub-contract to another firm or rely on a particular staff member who is proficient in tax affairs.

Unfortunately, the word 'accountant' is not a protected word such as 'solicitor'. Therefore anyone, with no training or background in accounts or tax, can set themselves up as an accountant and trade as such. Qualifications, whilst not the be-all and end-all by any means, are a good indication that your accountant has been properly trained.

There are many good accountants however who are qualified by experience and it is often the case that one who has spent many years in business will be well-placed to offer a better service than one who has only just qualified.

So if you can find one that is qualified and has years’ of experience, all the better!

2 What is your ‘business’ experience?

Taking on an accountant should be viewed in many ways as the same as taking on a senior member of staff or business partner. Be sure to determine whether your chosen firm has been in business for a number of years and therefore employs staff members who understand the needs and requirements of running a small business.

www.avantitaxaccountants.co.uk

CHOOSING AN ACCOUNTANT

3

Does your firm hold a practicing certificate?

All members of one of the main accounting bodies have to be approved to run an accountancy business.

This means that they have to satisfy the professional body that their staff are competent and that they have undertaken additional training each year to keep their knowledge up to date.

Being a member of a professional organisation means that should you have a complaint against the service or advice you receive, they will investigate and can sanction, fine or expel members.

4

Can I see the firm’s PI cover?

PI (Professional Indemnity) insurance is very important for you as client. It protects you should you be given the wrong advice by your accountant and suffer a financial loss as a result. Being a member of a professional body ensures that this insurance is in place, up to date and that the limit of cover is sufficient.

5

Can you explain your fee structure?

Wherever possible always agree a fee in advance. An accountant should be able to provide you with a quotation as a guide to the fees being charged, based on the information they have obtained from you.

Upon instructing your new firm you should be provided with a Letter of Engagement detailing each party’s responsibility. This forms the terms and conditions between you and your accountant. It is standard good practice and provides you with further protection.

6

What training do you undergo?

Be sure to ask your prospective firm what Continued Professional Development (CPD) training their accountants & general staff receive. Do they attend regular structured training to obtain CPD points?

www.avantitaxaccountants.co.uk

CHOOSING AN ACCOUNTANT

7

What technology does your firm use?

It’s important that accountancy firms utilise up-to-date, modern technology in order to ensure that business runs smoothly, including making all HMRC and Companies House submissions online.

Check also whether accounts and tax returns are prepared using computerised programs and that their

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How proactive will you be you in keeping me informed?

Proactivity is key, particularly when it comes to keeping you informed about anything that could financially impact your business. Questions to consider include: 

Does the firm provide regular newsletters containing advice about the financial side of your business?

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Do they remind you about all the varied important dates and deadline?

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Do they provide regular updates on the progress of your case via a nominated point of contact?

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Do they confirm meetings with a complimentary text the day before?

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Can they provide simple over the phone and email advice without charging an arm & a leg?

Can you help me grow my business?

Word of mouth and referral marketing is one of the best ways to grow your business. Ask your prospective accountants how well connected they are and if they have a network of contacts that can assist you in growing and running your business.

10

Will you be upfront about how much you can help?

You have probably heard the term ‘over promise, under deliver’, and many unscrupulous accountants can ‘exaggerate’ the amount they can save clients when it comes to tax - simply to win their business. It’s important to trust that your accountant will be realistic regarding the correct amount of tax you will pay.

11

How Approachable are you?

Does the accountancy have presentable offices where you can meet in a private environment?

Will they visit you at your workplace or home if you wish at a time convenient to you?

Are they friendly and will never make your feel ‘stupid’ for asking a question. Do they speak Plain English rather than jargon to try and impress you!? Do you get on with them, could you work with them - do you like them?

www.avantitaxaccountants.co.uk

CHOOSING AN ACCOUNTANT

How easy is it to change accountants to Avanti?!

Very easy! It simply involves a Letter of Engagement, HMRC forms and relevant ID - we take care of everything else. This includes contacting your previous accountant for the relevant professional clearance and copy documentation we will need*. *N.B This should not be something your previous accountant charges for as is it standard good practice.

Why Choose Avanti? 

Our firm holds a practicing certificate with AAT

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We are members of the Association of Accounting Technicians (AAT) / Federation of Tax Advisors and Institute of Certified Practicing Accountants

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Qualified staff and some are "Fellows" of their institute and sit on regional committees

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The principles all have vast experience in running their own businesses

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We provide quotations and various payment methods to suit your cash-flow requirements

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All our technology is up-to-date and backed up - our own IT arm of the Group ensures this

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All staff attend regular continuing professional development training

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Our PI cover is up to date, required levels of cover and is available for inspection

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We remind you about all the important dates and deadlines

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As well as a large client bank, the Group owns Avanti Networking – providing a sphere of contacts in various areas of running a business

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Emailed monthly information newsletter

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Providing free telephone advice (any complicated advice that requires investigation and calculations would be charged, but we would advise you)

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Providing max. 4 hour response to emails and telephone messages

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Invitations to free business seminars

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Services tailored to meet client requirements— we can meet you at your premises or our offices, whichever is more convenient and we can collect paperwork from your premises

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Free tax tips on twitter AVANTI_ACCS_TAX

www.avantitaxaccountants.co.uk

CHOOSING AN ACCOUNTANT

Your Next Step… Book in for a free review to see how you can benefit from appointing Avanti Tax Accountants as your professional advisor.

www.avantitaxaccountants.co.uk