Thursday 25 July 2024
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Choosing an Accountant for your Small Business

Choosing an Accountant for your Small Business

Hiring an accountant is an important decision for your small business. New businesses start and fail every day. Investing in good financial planning can benefit you in the long run. A good accountant takes time to understand your business processes; they can minimise your tax payments and help your business grow. It can be daunting to choose from a thousand accountants out there, so it’s crucial to make an informed choice by asking some questions and considering a few important things during the selection process.

Do your Research

Getting the wrong person for the job can make you miss out on things that you should know and cost you more than you should. Look for someone who doesn’t just have the skills but also the knowledge regarding supporting small businesses. Your accountant can act as your business partner, so take time to do your research. Meet with several good candidates before making a choice. It pays to choose someone who is a member of the ICAEW for they have professional indemnity insurance, which pays you if bad advice incurs any losses. You could meet any current clients, to confirm the reputation of a good candidate.

More than Balancing Books

When hiring accountants in Central London or any other part of the city, it’s good to know that they will not just look after your accounts and tax compliance. They can also help you increase capital by finding government funding grants and tax relief schemes. They will let you know what you are entitled to and not just balance your books. It’s wise to weigh the costs between hiring an accountant and how much your business can save with your accountant’s help.

A Good Match

Ask the accountant if they specialise in small businesses. Chances are, they are more likely to understand your challenges, including the prices you can afford. You can ask what other smaller companies they have worked with in the past and the services they can provide you over the coming years. Establish your level of engagement. Less contact may mean less cost but can be disadvantageous because it will be harder to spot issues.

Measure Performance

Once you’ve made your choice, measure their performance. Hold regular meetings to know their views on your finances and business in general. It’s a good sign if their view is similar to yours. It’s good to have a proactive accountant who will regularly check the progress of the business and discuss any of your concerns. Make sure to engage in dialogue so you can build a relationship.

Hiring an accountant could mean looking for someone who will go with you on your entrepreneurial journey. A good thing is, you won’t find it difficult looking for the best accountants in Central London because there are plenty of companies offering accounting services. They won’t just cover the basics but also guide you through looking at your business objectively. They should offer advice and solutions that will help you achieve your objectives.

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