5 Essential Tips for Choosing the Right Accountant

Navigating the complexities of finance is a challenge that many trade, services, and construction business owners face.

The role of an accountant in your business is indispensable for not just tax returns but also for strategic financial planning. So, how do you pick the right accountant? Let’s delve into this crucial topic.

Why You Need an Accountant

First and foremost, the minimum you should expect from an accountant is filing your tax return. This includes a personal tax return and a business schedule for sole traders.

Accountants should consolidate your income and expenditures and prepare a summary of your financial standing.

Pro Tip: Communication is vital! Ensure you know the regular reports that need to be filed and confirm whether your accountant will remind you or if you need to reach out.

Expertise Matters

Your accountant should be more than just a number-cruncher; they should be a financial guide. They should be able to answer any questions and educate you on financial matters, helping you make informed decisions.

Pro Tip: Use your accountant as a resource for acquiring knowledge and skills. Always go for an accountant who helps you understand the complexities of financial management.

First Impressions and Ongoing Engagement

During your initial meetings, a proactive accountant will scrutinise your finances and suggest areas for improvement. A dedicated accountant should be upfront about their services and engage with you regularly, as discussed in the initial engagement letter.

Pro Tip: Always look for accountants who focus on educating you so that you can avoid future financial pitfalls.

Bookkeeping: DIY or Outsource?

While some accounting firms offer bookkeeping services, you must make a decision based on your needs and financial capacity.

Pro Tip: For small businesses with fewer transactions, learning bookkeeping basics can save you money in the long run.

Signs You Need to Switch Accountants

If you feel unsatisfied with your current accountant, you should have an open conversation with them before switching. A change is straightforward, but ensure you have all your old financial data for a smooth transition.

Pro Tip: Before you decide to switch, always communicate your expectations. If there’s room for improvement, your current accountant might be able to meet your needs.

Choosing the right accountant can make or break your business. The right accountant is not just a ‘tax preparer’ but a financial advisor who can guide you through your business journey.

Follow these essential tips to make a decision that will stand your business in good stead.