When most people start a business, they do their taxes and take care of other financial functions. However, there comes a time when the business grows requiring the entrepreneur to hand over the responsibilities of the business’s accounting to a professional.
Finding a good accountant is not as easy as most people think. Trusting another person with the financial future of your business is not easy either. That is why you need to be very careful when making this decision. Considering that there are so many firms out there, how does one settle on the right one for his/her needs? Well, keep reading to find out the key things to look out for.
Factors to Put into Consideration When Choosing an Accounting Firm
Do you live in the UK and are looking for a London based accounting firm helping Ltd company businesses and individuals? Then you have come to the right place because we’re going to guide you as you make this critical decision.
Here are some of the ways in which you can determine whether an accounting firm is right for you or not:
1. Experience and industry expertise
Find a firm that has been operational for a while and has helped many businesses before you. This means that they probably know how everything needs to be done and can easily resolve any arising issue.
Also, accounting firms that have specialized in a particular field tend to offer better services. You have to know what makes you comfortable and gives you the confidence that the firm can handle all your financial problems.
Apart from expertise, you also need to make sure that the accounting firm you choose has certified and licensed accountants. The deeper your financial needs are the more you’ll benefit from an accounting firm that employs certified accountants.
Is the accounting firm qualified to handle the complex issues at hand? If your financial needs go beyond filing tax returns, you need to find a firm that can compile end-of-year financial statements as well as give you advice on retirement planning. The accountants may also need to attest to the validity of your business’s financial statements to a third-party. Can they handle that?
Accounting fees vary from one firm to another. Do you prefer working with firms that charge a fixed rate or those that charge on a “by the hour” basis? Whatever you prefer, make sure that the amount remains within your budget.
If the firm is a well-established household name, expect that their rates are higher.
How often would you like to meet your accounting firm? If you only need help with filing your taxes, you can meet once every year. Otherwise, you need an accountant who’s available to answer all the questions that you might have. Find out in advance if you have to schedule a meeting in advance or you could just call them.
5. Goal setting
The firm should help you set goals and come up with easy ways to monitor your financial progress. This is very helpful if your business is still in infancy. Expect to pay additional fees for these services.
Hiring an accounting firm to take care of your financial needs is a good sign that your business is growing. Make sure that you find a good firm that’ll help you file your tax returns (both personal and commercial), develop the budget for your business, and set financial goals. Take as much time as you can when making the choice – you must perform adequate due diligence before settling on any firm to determine whether or not they’re qualified enough to meet all your business’s needs.