How to Pick a Proactive Accountant

19 August 2008

There are many accountants out there to choose from, deciding which ones are better than others is difficult, as you can rarely tell until you’ve experienced their service. Also, how do some accountants justify charging more than others? This can be summed up in a single word, proactivity. Ask yourself the following questions:

 

·        Does the accountant contact you to deliver your records?

·        Do you know how much your accountant will charge you prior to any work starting?

·        Does your accountant offer any additional services to:

o       improve your records;

o       decrease your tax burden; and

o       aid your company’s growth?

 

If the answer to any of these question is ‘no’, then your accountant is not as proactive as they could be. Without being reminded that your accounts are due, ask yourself how likely are you to remember to deal with this? At Chancery we ensure that the answers to the above questions are ‘yes’ and we have four main areas of proactivity that we champion:

 

·        Tax Planning

·        Improvements / suggestions to Client Records

·        Business suggestions

·        Other services

 

 

A proactive accountant can mitigate tax liabilities. There are many different schemes that enable a client to minimise this payment. Please see the Tax Shelters Section of our website for more information.

 

 

The client is always looking for ways to reduce their accountancy fees and any competent accountant should give suggestions free of charge. Simple suggestions such as using bookkeeping software (some are better than others), or double checking the manual records can save the accountant time and the client money.

 

At Chancery we also offer training for manual records and the more popular software programs. This obviously costs the client more in the first year, but as the records improve in subsequent years, it drives the costs down.

 

 

In the current economic climate it is important for clients to maximise their income. The accountant may be aware of some information in the public domain that the client is not e.g. plans for a new development / increased government spending etc. Also, there may be scope for the client to diversify into a new market such as manufacture to restoration. This would add another income stream to the client’s business.

 

It is vital that a new business is setup in the correct manner. For instance, should a prospective business be set up as a limited company (LTD), a limited liability partnership (LLP) or an unincorporated entity? This can be furthered by the accountant gaining favourable business banking rates from contacts in the banking industry.

 

The accountant may be able to match client’s needs with other clients.   For example, a builder might be looking for a plumber or electrician, which the accountant may also act for.

 

Many accountants undertake an analytical review of the accounts prior to completion. This checks that the margins look consistent with their knowledge of the business and that the other costs look reasonable. This can be furthered however if the accountant drills down, from their experience they may be able to identify cheaper suppliers which would improve margins and ultimately profits.

 

 

We offer corporate document management services. This enables us to monitor statutory deadlines effectively and advise out clients in a timely fashion to enable the filing of statutory documents prior to any penalty charges occurring.

 

Bookkeeping services are provided by most accountants though few actually suggest this to clients. The cost of an accountant providing the bookkeeping services can be significantly lower than employing a full or part time bookkeeper.

 

Meaningful monthly or quarterly management accounts can be provided at little additional cost to the client, thus enabling the client to have a periodic report rather than an annual snapshot of the business. This is important currently as the market slows, as clients can monitor profitability and be proactive rather than reactive to market changes.

 

At Chancery we also have access to Independent Financial Advisors through our sister business Chancery IFA LLP and banking and insurance services through some of our business contacts.

 

If you would like to know more, please do not hesitate to contact Stephen James (Senior Audit Partner) or Graeme Whittall (Audit Manager) on 01908 699600.