Recently Stefan made a posting ‘what questions should I ask my accountant’, this prompted me to make a posting about the different structures available to you when starting a business. Well today I am going to follow on from Stefan’s posting and go into a bit more detail on what others questions you should be asking an accountant before you ask them to act for you.
Are you fully qualified?
Yes really, you need to ask this, not everyone who calls themselves an accountant is formally qualified, and from 15 December 2007 the new Anti-Money Laundering Regulations come into effect which means those ‘accountants’ who are not part of a regulatory body will be regulated by HM Revenue & Customs, interesting isn’t it!
Is your accountants business to big or small for you? Is there a fit?
This is important, there needs to be a fit between your business and that of your accountant, after all if you are a small business and you go to the largest firm in the area it may very well be very costly, and although they will have all the service offerings under the sun, this maybe of no use to you!
Equally important is that you don’t want to go to a firm that is too small, as you grow or need specialist advice will they be able to keep up with you and help you grow, or do you now wish you had gone the the bigger firm after all?
It’s not an easy choice, too big or too small? Although size is not everything, you need to quiz them on their service offerings, what if you grow? what if you need specialist tax advice? what if ….
What other businesses do they act for in your sector?
Although not always a requirement, you would hope they have either got other businesses in your sector or allied sectors. For example, we don’t have any farming clients, and if we were approached by a farmer we would be honest and say we don’t think there is a fit, which ultimately means we do not feel we can do him/her justice.
So chose an accountant that understands your business and the sector you operate in.
Point of contact
This is very important, who will you have as a point of contact, and will that person be there next year? We have clients come to us who have in previous firms dealt with a different person every year or so, therefore no continuity.
Pro-active, or not?
The word pro-active is not one I am comfortable with, I have never really understood it, but it gets used more and more these days. So ask your accountant, will you contact me, or do I have to spot my own tax saving ideas and contact you? what about industry specific news relevant to me? will I hear from you more than once a year when you are ready to raise a bill?
And finally, but certainly not least, what can you do for my business that the next or previous firm can’t?
Don’t be afraid to ask, remember you are paying the accountant, and in many cases not an insignificant sum of money, and for that surely it is not unreasonable to expect them to earn it, and I don’t mean by just doing your accounts and tax returns.
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alastair (Who am I?)
2 years ago
but don’t forget to ask yourself the most important question, am I interested in pursuing a relationship with this firm, or in practice the people within it that will deal with my affairs? And putting that another way, do I think they are sufficiently interested in me?
Jason Holden (Who am I?)
2 years ago
Thank you Alastair, I actually think that should have been my first point!
Mark Lee (Who am I?)
2 years ago
Good advice Jason. That final question though. I’m not sure it’s one that most accountants could answer. How can they know what other firms can do? And even more important – it doesn’t matter UNLESS that service or facility is one that the client wants, needs and values. So the key words are ‘for my business’ (or even, ‘for me’) and if someone tries to answer that before they’ve found out what might be relevant to you…..
Jason Holden (Who am I?)
2 years ago
Hi Mark,
You are right, in part, but, most accountants in an area will know what the competition can or does do, if nothing else through either gaining or worse still losing clients to them.
Why I feel the last question still has relevance is that in my approach to a potential new client I will not attempt to comment on other firms, quite the opposite, I will in fact go and meet this potential new client at their home/place of business and sit with them and listen to what they have to say, then after a few well chosen questions from me combined with 20 years experience I will tell them what we can initially do for them to help them achieve what they want.
I say initially because only after building a relationship and mutual trust do you ever truly find out what the client wants or how they tick.
I hope that helps clarify a bit more my final question, which in itself I guess is a but vague.
Stuart Jones (Who am I?)
2 years ago
I disagree Mark. Some firms of accountants know their competitors well and therefore know what they do well or more often badly.
In Kendal, one unqualified firm (NB Jason’s first point) has blackened their reputation with HMRC by saying that one of the local Inspectors “backs their firm”, another will only use electronic data from Sage (otherwise all info. has to be supplied on paper), another takes the figures from the Sage trial balance & enters them straight into the tax return – no checking, no tax planning, nothing and sadly the last two are both chartered firms.
Jason Holden (Who am I?)
2 years ago
Thanks Stuart. I just want to add, the part I thought Mark was right on was ‘Good advice Jason’
I find it scary how many firms no matter what their qualifications are out there giving advice, thank god I don’t need an accountant/business advisor.