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Choose and manage an Accountant

Accountants can offer your business a range of services from basic bookkeeping to specialist business advice, saving you time and helping to make your business more profitable.

It is imperative when buying or selling a business that you choose an accountant that is experienced in this area and that you agree terms in advance. You may also wish to consider engaging an accountant other than your current company accountant.

A list of accountants experienced in the area of business transfer is provided here


Where to find an accountant

If you look under A in any local business directory you'll find lists and lists of accountants. However, anybody can call themselves an accountant and there can be better ways to find contact details than taking pot-luck with a directory.

Professional associations

Qualified accountants usually have the words "chartered" or "certified" attached to their title. They also usually belong to one of accountancy's professional associations.

The following professional associations can help you find a qualified accountant:

Recommendations

Many businesses find accountants through personal recommendation. Although what is right for one business isn't necessarily right for yours - it can be helpful to ask for recommendations from your:

  • friends, family, business associates and contacts
  • bank or lawyer
  • professional or trade associations - this can be a particularly useful route if you're looking for an accountant that specialises in your industry

Bear in mind it's best not to start looking for an accountant just before you need to use one. Allow yourself plenty of time to find one.

Once you have found some names and considered their reputations and qualifications, you should be in a position to draw up a shortlist of about six accountants you'd like to contact.


How to choose the right accountant

It's very important to select an accountant who's right for your business. There really is no substitute for speaking directly to everyone on your shortlist and discussing their experience and services and your business needs. Ideally you are looking for a long-term relationship with an accountant so these are important considerations.

Telephone your shortlist

Ask each accountant about their practices:

  • Experience - do they have clients in your sector? Can they deal with your business' special needs?
  • Charges - what do these cover, how are they scaled and do they offer all-in fees?
  • Personnel  - who will look after your business most of the time - a partner or someone more junior? How many partners are there? Sometimes smaller practices suit smaller businesses.
  • Efficiency - what response times do they work to?
  • Added value - what additional services can they offer?

Choose about three to visit. Check whether you will be charged for this meeting.

Meet your prospective accountant

When you visit a practice, you should discuss:

  • How the practice can help you develop your business.
  • Whether it will be able to offer you advice.
  • What services you will be charged for and how and when you will pay for them.
  • The access you will be given to the data the accountant holds about your business, which you might need for, say, updating your business plan or a tender document. And will you be able to get it easily if you want to change accountants later on?

Take your business plan and other useful information about your business to the meeting. An accountant should want to know as much about you as you do about them.

An accountant should also be happy to pass on names of clients for you to take up references.

Once you've found an accountant who you think matches the aims and needs of your business, let them know that you've selected them and they will issue a letter of engagement. This letter will be the contract between you and your accountant and should detail:

  • your responsibilities
  • the accountant's responsibilities
  • their fees and how they will be charged

Checklist: ten things to ask your prospective accountant

  1. Are you qualified?
  2. How many partners does your practice have?
  3. Are you experienced in dealing with businesses of my firm's size and stage of growth?
  4. Do you understand my business sector and its special needs?
  5. Who will look after my business on a day-to-day basis?
  6. What are your practice's estimated response times?
  7. Will your practice be proactive - for example, contact me to remind me when I need to submit accounts or give me updates on changes in tax law?
  8. Do you offer any additional services - for example, inheritance planning or information-systems advice?
  9. Does your practice have any specialisms - for example, in start-ups or stock-market listing?
  10. How do you charge and what exactly do the charges include? Can a fixed fee for the first 12 months be arranged?

Managing the relationship

The terms of the relationship with your accountant are set out in the letter of engagement issued to you. In addition your accountant can help you to manage and develop your business.

To get the best out of your accountant you should arrange to have regular contact with them. Also, remember to allow yourself plenty of time to discuss tax implications before the preparation of year-end accounts.

Any problems in the relationship could be indicated by your accountant's behaviour:

  • being difficult to contact
  • failing to provide you with information
  • unexpected fee hikes

It could also go wrong if you fail to:

  • keep agreed records or deadlines
  • inform your accountant of changes to your business

Reviewing the relationship

As you've probably discovered, your business needs do not stand still. A good accountant should adapt with you, however, every three to five years, it can make good business sense to ask:

  • Is my business still getting value for money?
  • Does my accountant still suit the needs of my business?

If the answer to these questions is no, then it could be time to find another accountant who is better suited to your current requirements.

Making a complaint

If for any reason you suspect your accountant of misconduct you can make a complaint to the professional body they are accredited with. However, the organisations will not help you get compensation for any funds lost as a result of the misconduct - to do this you will need to seek legal advice.


End the relationship

There are a number of reasons why you might want to consider finding and using a different accountant. You may be unhappy with the service offered, your business could be in need of new specialist skills or the relationship may just not be working.

If you do choose to change your accountant, it's worth managing the process carefully. Bear in mind that you need to terminate the agreement with your existing accountant before you sign any agreement with a new one.

Before you do anything else check the terms and conditions that you've agreed with your accountant. There may be a notice period you need to honour.

Next thing to check is that you have access to all the data relating to your business. You should aim to have these transferred to your new accountant prior to the handover.

Accountants should be cooperative if you wish to place your business elsewhere. But always clearly set out timetables for the transfer and make agreed payments to the accountant on time.

If you don't, the accountant has the right to withhold your figures and other data they have on record about your business until payment under the agreed terms and conditions has been made (with the exception of limited company accounts that must be filed with Companies House).


Related web sites you might find useful
Read more advice on choosing an accountant from the Association of Chartered Certified Accountants website
Select a Chartered Accountant from the Institute of Chartered Accountants in England and Wales website
Select a Chartered Accountant from the Association of Chartered Certified Accountants website
Find an Accountant at the Association of Chartered Certified Accountants website
Read a guide to professional ethics on the Institute of Chartered Accountants in England and Wales website
Read about making a complaint on the Association of Chartered Certified Accountants website