Deciding on and enlisting the correct accountant or accountancy company, is a critical decision. It is important to note that almost anyone can set themselves up in business and market themselves as an accountant.
Here are some critical factors you should recognise when contemplating which accountant to employ if you are UK based:
The right accountancy qualifications
The qualification you need to be looking forin your business accountant is Chartered or a Chartered Certified Accountancy practice. (While anyone can call themselves an accountant, only people who have passed proper professional tests can refer to themselves chartered).
The ICAEW is the biggest professional accountancy body in the European Union with over one hundred and twenty five thousand members. The qualification issued by the ICAEW is sanctioned throughout the world as a illustrious business qualification. Upon passing this examination institute members can call themselves a Chartered Accountant and to use the letters ACA or FCA, which one they use depends on the amount of experience the member has and the length of membership.
Qualified accountants need to prolong their knowledge to make sure that it is relevant. Consequently members undertake Continuing Professional Development or CPD for short.
This is very much alike to other industries. CPD requirements generally incorporate so many hours each year improving ones knowledge and can be attained through a mixture of tactics including teaching yourslef, attending workshops or courses.
Whilst it is noncompulsory to use a chartered accountant for your businesses accounts, in the United Kingdom if your organisation has a turnover above a set amount you will need to have your business accounts audited. The auditing of these accounts however can only be done by a firm of registered auditors.
The type of accountancy firm
When employing an accountancy firm you should try to choose a type and size of accountancy practice suitable to your business. If you are a international enterprise a small regional accountancy firm is unlikely to be the correct choice. Likewise a small to medium sized enterprise (SME) with a small turnover or a start up business would probably not get the best service from an international accountancy firm.
It is important to note that whatever accountancy firm you choose to represent your company should be able to accommodate you as your company grows. So when employing an accountancy company choose one which has clients larger than you so that they have the experience of working with size of firms at a size which you intend to become.
Your Accountant's Personality
Putting aside knowledge and qualifications for a moment, it is important that you get along with them personally. The better accountant for your organisation will show a keen interest in your company and the business world in general.
Personal Recommendations on accountants
Many people rely on personal recommendation when selecting an accountant.
Choosing an accountant through recommendation does give you a significant amount of confidence when compared to say selecting an accountant from the phone book or from an advertisement on the internet. As such you should ask any friends, relatives or business contacts that have had any dealings with an accountant for their opinion on that accountant.
The above factors should give you a good guide when it comes to selecting an accountant or accountancy firm
