Many people think that only large businesses need, or should have, an accountant. The accountant-tax adviser is responsible for recording and checking income and expenditure across the whole spectrum of accounting, actively participating in every business. But he or she can also become the best adviser for your business, using the ‘art’ of accountancy, and is able to show how any decision by a business or an individual can affect his or her financial position in relation to taxation. He or she does not merely complete forms, but by using the forms can chiefly propose alternative structures to businesses or individuals for the lowest possible tax burden within the framework laid down by tax legislation.

Choosing the accounting firm is important for every company. A key factor in the success of your business is finding a good accountant who can provide you with appropriate, timely and cost-effective advice on the constantly changing legislation. It is also very important that your accountant is able to explain complex tax terminology in a clear and understandable way for non-specialists. When choosing an accountant, you should look for someone who has relevant specialisation in the sector in which your business operates, and who can help you with timely, effective and useful advice at a reasonable price. They should also be someone who appears to care about you and your business, and whom you would trust for a long period of time.

During your next appointments, your main aim is to learn about three things:

Services.

Find out in detail about the services your business really needs and which of these he or she can offer you. Make sure that he or she has relevant experience in your sector. A general accounting cover includes four key areas of expertise:

  • Business advisory services
  • Accounting and record-keeping.

Tax advice.

Audit.

When you are the owner of a small business, your money is your lifeblood, so the accounting firm you choose should not only prepare your tax return; it should also act as a reliable financial adviser who can identify potential problems before they get out of control and provide you with all the information you need to make the right decisions for your business. Finally, there are accounting firms which offer guarantees; take advantage of this fact. After all, in order to offer them they are clearly confident in their capabilities.

Personality Is the accountant’s style compatible with yours? Make sure, because the people you have met are the same ones who will handle your business affairs. When assessing competence and compatibility, ask the candidate firm to describe how it would handle situations concerning you. For example: How would it handle an imminent inspection at the business premises? Ask them about the flow of the procedures you will need to follow, how often they will contact you and in what way; these points will tell you whether their style matches yours. You want someone who is going to listen to your opinion, listen to your problems, and understand your business. You want someone who can tell you clearly what you need to know. Listen to their answers, and decide whether this is how you would like your affairs to be handled, and whether you can trust them.

Rights Ask about fees in advance. Work out which services you are likely to need and which option will be most cost-effective for your business. Obtain a range of quotes from different accountants. Try to get an estimate of the total annual charges based on the services you have discussed. Do not base your decision solely on cost; try to secure the best possible deal with a package of services that will daily protect your business and bring it closer to the top.

Once you have made your choice, set out the terms of the agreement in a “private agreement” which describes in detail the obligations of everyone. This ensures that your accountant has the same expectations and helps avoid misunderstandings. Make the most of the accounting relationship to your benefit. It is a good idea to have a scheduled meeting with your accountant every month so that you know and are informed in greater depth on the full range of matters. This is where your accountant should suggest alternative ways of reducing costs and act as a sounding board for any ideas or questions you may have.

A good accountant can help your business in ways you never dreamed of. The time you spend finding the right accountant – and making use of the advice he or she has to offer – is one of the best things you can do to help your business and propel it to new heights.