Keeping on top of your finances is important. For many of us—especially those self-employed or dealing with multiple loans—doing our own accountancy can be time-consuming and headache-inducing. For this reason, many of us hire someone more patient and practiced to do it for us. Of course, there are many things that should be taken into account before hiring an accountant. Here are some of those things that you should first consider.
Can you afford an accountant? There’s no point paying someone full-time to handle your finances if you haven’t got any finances to handle. For some, a single appointment with a financial advisor might be all they need to work out what tax bracket they’re in or what loans or insurance policies to take out. If it’s simply a tax return that you need assistance with, keeping a record of all your income and payments throughout the year and then hiring a temporary accountant closer to the time to calculate expenses might be a more sensible option. For those with multiple staff and irregular income and payments, it may be handy having an accountant permanently on call who can check the books on a monthly basis. Only big organisations should worry about having a full time accountant as part of their staffing team.
Can you trust them? It’s important to trust the person handling your accounts. Many small businesses and freelancers will hire friends and family members, who may not be qualified accountants but will have some mathematical or financial know-how as well as being trusted due to their closeness. Others will look for chartered accountants—those who have been professionally recognized by a governing body called the ICAEW and therefore more competent. Of course, chartered accountants are a lot more expensive, as their need to meet certain standards and criteria allows them to charge more.
It is possible to hire a reliable non-chartered accountant. You can always ask them for qualifications or references of previous clients. You may also want an accountant who specifies in your area of work such as law or retail or insurance. Note that if an accountant turns out to not be as proficient as they claim to be, you can always pursue professional negligence claims and get back any money you may have lost for their carelessness.
Is location important? In this age of video chats and cloud-sharing, you no longer need to hire locally. If you have a niche business and want a niche accountant for the job, feel free to do all your communication by telephone and online. If you prefer to have someone look at your accounts in person or aren’t so savvy with computers, a local accountant might be more suited.
Generally, you should always meet your accountant at least once face-to-face before committing, just to make sure they are who they say they are and not just some fraudster wanting a way into your bank details. Most accountants will want to meet up in person at first anyhow, to make sure you’re not dodgy either. Just realize that it doesn’t have to be face-to-face every time from here on in.
Milo Senalle
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