Choosing a Contractor Accountant

It’s relatively easy for an accountant to tell you why THEY are the best, but what’s more important is considering what is best for YOU!

Working with the right accountant should feel more like a partnership than a pain. If you’re in the position where you’re about to make that decision, either from scratch or because you’re not particularly happy with your current provider, it’s worth asking yourself the following questions before making your decision.

1. Is the accountant you’re looking at a specialist? Do they understand your needs as a contractor?

Appointing a specialist accountant means they will be familiar with all relevant legislation changes and with how contractors work. You can feel reassured that you are getting the right advice and important factors are not being overlooked.

If they have limited knowledge on legislation changes, such as IR35, or aren’t savvy regarding effective company dividend withdrawals, they may not be as effective in successful tax planning, and effective planning can make a big difference in maximising your business’ potential.

2. Do they offer a bookkeeping software that caters to contractors?

Some accountants do offer bookkeeping software as standard, but others may charge for this additional service.

So, keep that in mind if the promise of a ‘low cost accountancy package’ does indeed all add up. Some accountants may offer an in-house solution, which may sound good on the surface, but should HMRC change or provide updates, such as threshold amounts or dates, the bespoke system may not be automatically updated which means deadlines or changes could be missed.

There’s some great bookkeeping software out there… but some programmes are generic and may not factor in the specific needs for a limited company contractor, so before signing up to a particular software, make sure it suits your needs.

Integro Accounting include FreeAgent as standard as it is quite frankly the best in class for consultants and contractors…it also saves us from having to be software developers each time the legislation changes. Find out the top 10 reasons so many contractor clients choose FreeAgent.

3. Do they have qualified accountants?

There are many good accountants in the industry who are not qualified, in fact you don’t need to have a qualification to be an accountant. There is however reassurance knowing that the person you are paying has taken time and consideration in understanding tax and how to be the best accountant they can be. Some of our accountants have over 20 years accountancy knowledge in addition to their accounting qualifications, making them invaluable. Don’t be embarrassed to check their level of qualification, most commonly ACCA and AAT qualifications to name a few.

4. Are they proactive in money saving opportunities?

Your accountant should get to know you and your business. Their job isn’t just to fill in appropriate paperwork at given times of the year, rather they should be proactively looking at ways to maximise your business potential through planning, and saving you money where possible.

5. Are you appointing an accountant or a ‘team’?

A ‘contractor consultant’, ‘team of accountants’ or a ‘dedicated team’ are just some of the phrases we’ve heard over the years. Sadly, these terms usually come with the contractor having to speak to several people on several occasions with lots of repetition. Therefore, we recommend looking for an accountancy firm that offers you a dedicated accountant. One that will be with you from the beginning, without you having to repeat yourself again and again, and will get to know you and your business. That will make for much easier communication and the confidence that your accountant understands and cares about your business and isn’t just completing a ‘task’.

6. Can you meet your accountant?

It’s always good to put a face to a name, and the person you’re entrusting your business’ accounts to is no exception! Make sure your accountant is willing to meet up should you want to, be that face to face, via Skype, Zoom or similar.

7. Do they offer an all-inclusive accountancy package?

Traditionally, accountants used to charge for their time. This means you would pay for the time they spend answering your emails and talking to you on the phone as well as working on your accounts.

However, it’s becoming more common for contractor accountants to offer fixed fee services, often giving you unlimited access to your accountant at no additional cost. This can make a real difference, particularly when you’re starting out in contracting and you’re more likely to need ad-hoc advice. It can be useful to know exactly what the cost will be in advance, as variable fees can be difficult to plan for. A fixed fee structure also makes it easier for your accountant to get to know you and your business, which in turn means the service you receive is likely to be better and more personal.

8. Do they have good client feedback?

This goes for any service provider, but even more so when it involves someone who is supporting you with your business finances. Whilst testimonials are important, take the time to review comments on impartial sites such as Google and Trust Pilot for a less bias opinion.

We hope these pointers have helped you in narrowing down your choice of accountant. The right accountant can have a profound effect on your experience as a contractor and on your business. Experience is one factor but the other is purely a matter of finding the “best fit” for you and how you work. Often this is a matter of how it feels to interact with your accountant, rather than working down checklist, after all, this is an ongoing relationship so its one you’ll want to be happy with!

If you would like to speak to us how our services can help you, give us a call on 0207 0962659 or email christian@integroaccounting.com.