If you are in business choosing the right accountant is an important decision. It is very easy to focus on the purely professional side of setting up your business and consider only what others can do for you. But your relationship with your accountant needs a more personal touch.
Money saving
It is much better to invest time cultivating an honest, trust-based working partnership from the start of your business – with a long-term relationship being the ultimate goal. That way, if you are clear about your business and its goals, a good accountant will proactively advise you every step of the way. It is also much cheaper and easier to get expert advice before actioning any business ideas, rather than wasting money fixing an avoidable mistake.
A good accountant will offer businesses a range of services, such as:
- Helping you define your business structure from its inception.
- Make your year-end reporting as easy as possible by establishing an appropriate accounting system and meticulous record keeping format.
- Advise you on the difference between personal and business expenses and how to keep them separate.
- Give you advice about particular acquisitions; for example, the benefits of leasing instead of buying.
- Keep you tax efficient. This means paying exactly what you owe by HMRC’s deadlines and claiming all the tax reliefs and allowances you are entitled to.
- If you are audited, they will help you through the rather daunting process.
- Keep up-to-date with any changes in financial law or regulations and consider how they impact on your business. This could mean changing your business from sole trader status to a limited company.
Peace of mind
Essentially, your accountant is there to make sure that you understand everything about your business’s financial matters. You need to know every detail of your financial statements so that you can evaluate progress towards your goals and make sound decisions about future planning.
All the elements of your accountant’s role add up to this – they use their expertise to analyse and explain your options, within the context of your current financial situation. The final decision is yours but, by nurturing your relationship with your accountant, you can make sure that it is the best-informed decision.
Tony Shanks