Some Tips for choosing an accountant for your limited company
Are you considering contracting through a limited company? Then you’ll require accountants for limited company. This guide will provide the top six tips to take into consideration when choosing the most reliable accounting firm that can help you in your career as a contractor.
Do you require an accountant?
Although some contractors try to manage everything on their own this is definitely far from the best method of working. A majority of contractors rely on a professional accounting firm.
There are plenty of things you can do on your own, like selling your home instead of hiring a solicitor, or even service your vehicle instead of a professional dealership. But, the cost of time may not be worthwhile to get some small savings. If you’re contracting, it is time to save money.
For a minimal monthly cost you can count on expert, qualified and complete service in every aspect of accounting as well as tax and other financial problems that may be a part of your contracting.
A specialist accountant in contracting knows precisely what you require and be aware of the particular areas of accounting and tax law specific to the market you are in.
Tip 1: Select a professional
Although the majority of accountants who are qualified can provide services to you, there are numerous accounting firms that specialise in various industries with a focus on those that handle the needs of freelancers and contractors.
They are, by nature, these companies typically provide a higher level of service than the one you receive from a generalist (high street) accountant, who will generally serve all types of clients and charge for their services on a high hourly rate.
The specialist accountants typically provide an arrangement that is a set monthly cost that covers preparation of the company’s accounts, tax return, payroll concerns along with statutory and telephone assistance. Certain packages are more comprehensive than other packages.
Specialist accountants will have a much greater amount of experience in the areas that particularly concern you, such as, for instance, IR35 as well as various other “hot topics” relevant to your particular industry.
Many reputable companies will provide a cloud-based accounting system. They are either developed by them, and hence bespoke to their requirements or they use an independent platform, such as FreeAgent or Xero together with tools like the Receipt Bank. Selecting either of them is essential since it can cost you less money and give more value for your money when compared with the older type of spreadsheet-based companies.
The market for accountants who work for contractors and the choices it offers has seen a significant increase in the past 20 years. Some provide low-support packages to contractors who have a good understanding of bookkeeping themselves. Some of them are focused on the lower-income part of the market while others concentrate on top earners. Some provide complete packages that include all-important tax planning tips.
Tip 2: Ensure professional credentials
The majority of businesses that specialise in providing consulting services are run by certified accountants that have made the decision to focus on their area of expertise, but also possess an academic qualification and an ethical code, which could provide you with a certain amount of peace.
It is not a good idea to work with a company who is not certified.
Tip 3. What is the size of the firm? large or small?
The number of clients managed by accountants’ firms that specialise dramatically from 200 clients to thousands of clients.
The quality of service is usually reflected in the numbers. You do need to decide if you would prefer an “institutional” type of service that is offered by larger organisations as opposed to the more personal quality of service that smaller companies typically offer.
If, for instance, you require support via phone at the partner level, with the same person every time you contact them for assistance, it may be worth selecting a smaller company instead of a big company.
Tip 4 Recommendations
It is always beneficial to ask for the recommendation of a colleague when you can. Talk to other contractors. You’ll quickly discover which contractors to steer clear of as well as those providing good service.
If you opt for an accountant who utilises an independent cloud-based accounting software, then switching to a different one at a later time will be easier. It could be that the company you select today might not be the best choice for you in a few years from now, when your contracting company has increased.
Tip 5: The cost of the service
It is recommended to expect charges in the range of PS60 to PS120 monthly for a special package.
It is crucial to be aware of what exactly is included in the cost comparison as the most expensive packages could include “fully inclusive”, compared to packages that are advertised as being less expensive but you may be charged extra fees such as the completion on your tax returns for personal use P11D, registering office address, etc.
Keep in mind that, like most items in the world, you usually buy the value you pay for. Even the most affordable price may not be sufficient to be able to meet your requirements.
Tip 6: Changing accountants
If, in the end, you’ve made the wrong choice and you decide to switch accountants, it is definitely possible. There’ll be a lot of stress and discomfort in the process, but it will ease in a couple of months seember.
It could be that you exceed the capacity of your accountant of choice and get out of the group of customers they were created to service. This happens when you earn more money and require tax planning assistance or you decide to grow your company by bringing on employees, and then you become an established small-sized company.
Some companies will provide different packages for this to ensure that you remain in their company throughout the journey in business. These firms are worth considering as an accounting company that gets to know you will also be able offer you more long-term assistance.Contact Account Ease or call us at 0208 133 4599 for best accountancy services.