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5 Tips on how to choose an Accountant

Business woman

A Google search will produce a list of hundreds to choose from, so how will know which one is right for you and your business?

According to SBA.Gov

An accountant can save you time and clear up much of the confusion you experience when it comes to managing your finances and taxes, but a trusted accountant can provide other benefits, too.

  • Act as a Trusted Advisor – More than just a tax preparer, an accountant can become a trusted advisor to your small business, helping you manage cash flow, plan for growth, assess risk, and keep your books in order.

  • Help Balance Business and Personal Needs – Many small businesses, particularly sole proprietors and startups, find that their business and personal finances are closely linked. A good accountant can help you make sound judgments beneficial to both.

Here are my top tips:

  1. Decide what services you need for example you might only need your accountant to prepare the year end accounts and tax returns and you might do the book keeping and payroll yourself? Or you might want help with Business Plans and raising finance?
  2. Ask about your accountants qualifications, CIMA Members in Practice are highly qualified, monitored by their Accounting Institute and carry appropriate levels of Professional Indemnity Insurance.
  3. Ask about their experience and knowledge of your type of business and industry sector, do they have references and testimonials?
  4. What if your accountant is sick or unable to do your work? do they have a continuity agreement in place with another accountant (all CIMA MiPs have these agreements)
  5. Ask about the fees and service levels, your accountant should provide you with a letter of engagement setting out what their fees are and the services they will provide.

 

Business Plans – Do you really need one?

business plan tree

A business plan is a written document that describes your business. It covers objectives, strategies, sales, marketing and financial forecasts.

A business plan helps you to:

  • clarify your business idea
  • spot potential problems
  • set out your goals
  • measure your progress

But its no good unless you have business model that works as Doug Richards explains

Research by the national enterprise campaign showed that last year 484,224 businesses were started, compared to 440,600 in 2011.

According to the FSB at the start of 2012:
  • There were an estimated 4.8 million businesses in the UK which employed 23.9 million people, and had a combined turnover of £3,100 billion
  • SMEs accounted for 99.9 per cent of of all private sector businesses in the UK, 59.1 per cent of private sector employment and 48.8 per cent of private sector turnover
  • SMEs employed 14.1 million people and had a combined turnover of £1,500 billion
  • Small businesses alone accounted for 47 per cent of private sector employment and 34.4 per cent of turnover
  • Of all businesses, 62.7 per cent (three million) were sole proprietorships, 28 per cent (1.3 million) were companies and 9.3 per cent (448,000) partnerships
  • There were 907,000 businesses operating in the construction sector – nearly a fifth of all businesses

micro: 0-9 employees, small: 10-49 employees, medium: 50-249 employees (updated October 2012)

The best bit of advice I have heard is this piece from Doug Richards ‘Take the Order’

Once you have a business model that works, then create a business plan, here is a link to some free plans to get you started http://www.bplans.co.uk/sample_business_plans.cfm

steve@bicknells.net