Top 5 tips to choose an Accountant for Small Businesses in 2021

Business

Accountant used to play a vital role in a business’s critical financial decisions. A perfect accountant will keep your records up to date, help with tax planning, assist in audit activities and will help to meet all financial deadlines. Below are the top 5 tips for choosing an accountant for your business.

  • How much will your Accountant costs?

It is necessary to determine how much your accountant will charge you and whether it is worthwhile to appoint an accountant for your business. Moreover, identifying any extra cost like exit cost will help to make more appropriate decisions.

  • Make sure your accountant is enough qualified.

It is necessary to make sure that the respective accountant is fully qualified. Most firms are members of a recognized accountancy body such as ICAEW (Chartered Accountants), ACCA (Certified Accountants) or ICS (in Scotland) etc.

  • What Services are included?

There are numbers of duties all accountants should carry out like (payroll management, Company’s annual accounts, accounting for VAT, dealings with HMRC etc.). It is beneficial to identify which other services they will provide: other services include (self-assessment returns, helping in providing a reference for mortgages and loans).

  • When it is right to hire an accountant:

Most of the small businesses do not have that much of transactions that required an in house accounts department. Still, hiring an internal accountant or external accountant firm is a good step towards growing the business. They will help you navigate strategic business decisions, such as hiring new employees and other financial decisions. Moreover, they will also focus on payroll, tax management, and annual accounts preparation. 

  • Finding a referral:

Before you appoint an accounting partner, research who or which firms your friends or competitors are using, word of mouth is a critical way to find out a trustworthy candidate for your business.

  • Conclusion

In this article, the top 5 tips are discussed which needs to be considered while appointing an accounting partner, whether it’s internal or any external firm. However, various other standard and industry requirements also need to be considered while choosing a trustworthy candidate. 

Author Bio: Jessica Watson has been writing for blogs and websites for the last five years. She had a fair share of writing for different business niches including, insurance, finance, tax, etc. She is currently associated with RDT Active who facilitates businesses to claim R&D tax credits in the United Kingdom.