What To Look For When Choosing A Small Business Accountant

Managing a small business can feel very satisfying. You are in charge of everything and are making something from scratch. But to be honest, it also comes with its fair share of challenges. One of those problems is dealing with VAT returns. Good small business accountants can take the weight of VAT returns off your shoulders, making sure everything is filed correctly and on time, saving you from potential fines and tax headaches.

But with so many accounting firms out there, how do you find the right one for your small business? In this guide, we’ll walk you through everything you need to consider when looking for the perfect accountant to streamline your VAT returns and keep your finances healthy.

Understanding Your Needs

Before you start looking for an accountant, it’s important to understand your specific needs. The requirements of a sole proprietor, contractor, or limited company can differ significantly. Knowing what you need will help you find the right match.

Identify Your Business Type and Needs

Sole Proprietor: As a sole proprietor, you might be looking for basic bookkeeping, tax preparation, and general financial advice.
Contractor: Contractors often need help with tax planning, invoicing, and expense tracking.
Limited Company: If you run a limited company, your needs might include comprehensive accounting services, from VAT returns to payroll management and financial reporting.

Specific Services Required

VAT Returns: Handling quarterly and end-of-year VAT returns can be time-consuming and complex. An accountant can maintain accuracy and timeliness.
Bookkeeping: Keeping track of your daily financial transactions is crucial. Small business accountants can maintain your books, allowing you to focus on your business.
Tax Planning and Preparation: Effective tax planning can save you money. Accountants help you take advantage of all available deductions and maintain compliance.
Payroll Services: Managing payroll can be a hassle. Accountants can streamline this process, ensuring your employees are paid correctly and on time.
Financial Reporting: Regular financial reports help you understand your business’s performance and make informed decisions.

Online vs. In-Person

Both online and in-person accountants have their pros and cons:

Online Accountants: Offer flexibility, often lower fees, and access to a wide range of digital tools. They are ideal if you prefer remote interactions and digital record-keeping.
In-Person Accountants: Provide face-to-face interactions, which can be valuable for building a trusting relationship. They are beneficial if you prefer more traditional methods of communication and local expertise.

Qualities Of A Good Accountant

Finding a small business accountant with the right qualities can make all the difference. Here’s what to look for:

Credentials and Experience: Make sure the accountant is qualified and has experience working with businesses like yours. Look for someone who is a Chartered Accountant (ACA) or holds a similar recognized qualification. Experience with VAT returns for sole traders, contractors, and LTD companies is a big plus.
Communication Style: This is an important one. You need an accountant who can explain things to you in a clear and concise way, someone you feel comfortable asking questions to. Schedule a consultation (many offer free consultations) to get a feel for their communication style and see if you can build a rapport.
Fees and Services Offered: Be upfront about your budget and get a clear breakdown of the fees involved. Make sure you understand exactly what services are included in their packages. Some accountants offer fixed fees, while others charge hourly rates.

Additional Qualities To Consider

Tech Savvy: The accounting field is constantly evolving, and good small business accountants will be comfortable using accounting software and other relevant technology.
Problem-Solving Skills: A good accountant can identify and solve financial problems, helping you make informed financial decisions.
Proactive Approach: Look for an accountant who doesn’t wait for you to come to them with problems. They should be proactive in identifying potential issues and offering solutions.
Business Sense: A good accountant understands the bigger picture and can offer insights on how financial decisions can impact your business goals

Where To Find Potential Accountants

Now that you know what to look for, where do you find these small business accountants?

Ask for recommendations from business owners, friends, or family.
Use online directories like Unbiased, Crunch, and Small Business Accounting for accountants’ reviews and ratings.
Join professional associations like ACCA, ACA, and CIMA for certified accountants’ directories.
Use social media and forums, like LinkedIn, for professional connections and recommendation gathering.

Evaluating Potential Accountants

Once you have a list of potential accountants, it’s time to evaluate them thoroughly.

Initial Consultations: Schedule initial consultations with a few small business accountants. Prepare a list of questions to ask, such as:

- - What services do you offer for small businesses?
  - How do you charge for your services?
  - Can you provide references from similar clients?
  - What is your experience with businesses in my industry?
  - How do you communicate with your clients?

Assessing Compatibility: During your consultations, assess whether the accountant understands your business and industry. They should ask insightful questions and demonstrate an understanding of your specific needs

Fee Structures: Understanding different fee models is crucial. Make sure there is transparency in their pricing and no hidden costs.

Trial Periods: Consider working with an accountant on a trial basis. This period allows you to evaluate their performance, communication style, and overall fit with your business.

Common Pitfalls To Avoid

Finding the right accountant can be challenging. Here are some common pitfalls to avoid:

Rushing the Decision: Take your time to find the right accountant. Rushing the decision can lead to choosing someone who isn’t the best fit for your business.
Ignoring Red Flags: Pay attention to any red flags during your interactions with potential accountants. Poor communication, unclear pricing, or lack of transparency can indicate potential problems down the road.
Not Reviewing Performance: Regularly review your accountant’s performance. Make sure they are meeting your needs and providing the level of service you expect.

Why DASA Accountancy Could Be Your Perfect Match

DASA Accountancy understands Edgware’s small companies’ VAT return issues. Why we could be right for your business:

VAT Return Specialists: We stay updated on regulations and deadlines to file your taxes on time. No more deadline stress or fines.
Personalised Service: Once we know more about your business, we modify our services to it. We can help with VAT filing and bookkeeping.
Clear Communication: We value straightforward, transparent communication. Our team is always ready to answer queries and explain things clearly.
Competitive rates: Get the help you need without breaking the bank with our services. We think honest pricing builds good business relationships.
Local expertise: We know your local business environment and can provide insights. You also have peace of mind knowing your accountant is nearby if you need to meet in person.

We’re confident that we are the perfect partner for your Edgware small business, helping you achieve your financial goals and free up your time to focus on what matters most. Contact DASA Accountancy today and take the first step towards financial peace of mind.