Insights | Accounting, Limited, Stretford, Tips

Top 9 tips for choosing a Limited Company accountant

Most small and medium sized Limited Company owners would agree that one of their most important advisors is their accountant; a good accountant will provide valuable guidance, help with tax planning and saving tax, and will ensure that you meet all your statutory deadlines.

To help you choose the best accountant here are some tips from the team.

1. Research your options early

Before starting your business, consider looking now, or as soon as it is feasible. An accountant can advise on the best business structure and how to register correctly with HMRC. Other areas an accountant can help you with are as follows:

• Register your Company for Corporation Tax
• Register for VAT if required
• Register for Payroll if required

2. Make sure your accountant is qualified

Make sure that all prospective firms are regulated. Most firms are members of a recognised accountancy body such as ACCA (Certified Accountants) or ICAEW (Chartered Accountants). 

3. Use a small Limited Company specialist

Make sure your accountant has experience of dealing with other small businesses, particularly other businesses within your industry. If you are a contractor or freelancer, for example, you will typically be better off talking to a specialist accountant rather than a ‘general’ firm, as there are specific tax laws you will need to be aware of, such as IR35.

4. How much will your accountant charge?

Does your accountant charge their fees annually or monthly? Are there any joining or leaving fees? How much will extra work be charged at if it falls outside the agreed tasks to be performed for your business? 

5. What services are included?

There are several statutory duties all accountants should conduct, such as setting up Corporation Tax, completing your Company Year-End Accounts (if trading as a Limited Company), submission of VAT returns, liaising with HMRC and Companies House.

6. Talk to your potential accountant

Always speak with your potential accountant. You will get a feel of what it will be like as a client from your initial dealings with them. It is important that you feel that the building blocks for a good relationship are there, so your ‘gut feeling’ will be the best guide. 

7. What size of firm are you comfortable dealing with?

At Accounting Solutions Manchester, we often find that smaller firms of accountants tend to understand the specific needs of smaller companies and can often be quicker to respond than larger firms.

This is very much a personal decision and you are likely to get a ‘gut feeling’ for one of the accountants that you get in touch with.

If you are a professional contractor, from personal experience, we would suggest you avoid the larger ‘factory line’ accountants; profit is the key motive for many of the big players, rather than keeping clients happy.

8. Communication

From our own experience, the biggest problems we have found with accountants in the past involve poor communication.

Your business could face penalties if paperwork is not returned to the authorities in a timely manner, and waiting days for a reply to a tax question can also be very frustrating.

9. Technology

Does your accountant work with all of the leading online accounting software packages, such as Xero, Sage and FreeAgent?

These types of software packages have revolutionised life for both accountants and their clients. It has never been easier to keep your accounts up-to-date and view the status of your payments and tax liabilities instantly.

If an accountant has not adopted cloud software yet, they are best avoided. Ironically, it has also never been easier to switch over to Accounting Solutions Manchester, thanks to cloud accounting software.

Summary

Choosing the right accountant can make a real difference to your business. At Accounting Solutions Manchester, we help limited companies with everything from tax planning and compliance to strategic business advice. If you’re looking for trusted accountants in Manchester, call 0161 879 7175 for a free, no-obligation consultation.