Most small business owners start off doing most of their office work themselves or with the help of family members. As the business grows it eventually gets to the point where this is no longer adequate, and they may employ a bookkeeper or office professional to give them more time with their clients, and to grow the business further. Around this time, it will also be necessary to forge a professional relationship with an accountant whose job it will be to review the accounts for anomalies or areas of improvement, prepare tax returns, and recommend new systems that will improve productivity and give quicker and more accurate reporting for decisions to be made.
This is a vital appointment, as this person should be someone who the owner believes will be with the business for the long haul, and will add value to the bottom line. It is not a choice to be made in haste, but should be approached in much the same way as the business would recruit key internal staff, through a careful selection process that considers skills, experience and service provision.
The best place to start is by asking other trusted business colleagues for their recommendations, and the reasons why they feel a particular person or firm is better than the competition. This is important because what they value in a accountant may not be suited to every business. For example, some accounting firms specialise in particular industries while others are niche practices that only suit businesses of a certain size.
It goes without saying that the accountants under consideration should have accounting qualifications. This can be requested and checked with the relevant professional bodies. Business accountants who are members of professional associations are required to keep up-to-date with current tax and business legislation, and they work with their clients to bring the client systems up to date to reflect the changes.
Choose an accountant that is interested in your type and size of business. Larger accounting firms tend to prefer large corporate-type business clients, while a small local firm may give better, more personal service, and their fees generally will be more competitive. Spend some time developing a short-list, and ask to meet with the person who would be looking after your business, should you decide to use this particular firm of Accountants. Discuss possible services and look for an accountant who can offer a range of services, rather than just looking after the annual tax return.
Typical services a growing business needs are the development of more sophisticated reporting mechanisms to assess business performance throughout the month, advice and assistance with purchasing and using new accounting software, the skills to provide detailed analyses of financial reports and to establish and monitor budgets.
Compare the service levels, fees, their knowledge of your type of business, and finally get a feel for how you think you would get along with each person in a professional sense. Choose the best, not necessarily the cheapest, because this is a relationship that should last as long as the business does.
