Accountants, one of your business key
Your accountant should be chosen carefully because he (or she) can be an important part of your team, providing advice and acting in many ways like a mentor. He must also be able to gain the respect of your managers and co-owners, so that his advice gets taken on board.
Recommendations from your network can steer you in the right direction when making your choice, but still use your own judgment about whether a particular accountant will be able to provide the attentive service your start-up needs and is also someone you can get on with. And talk to more than one before making a decision.
Smaller businesses are generally better off using a smaller accountancy firm, because it is more likely to provide the personalised service they need and it will also be cheaper than using a big name.
You should find an accountant who is happy to help set up your internal accounting systems by suggesting which processes to adopt and recommending a computerised accounts package that is compatible with their own systems. The accountant should provide advice on how you can use a bookkeeper to both keep you constantly informed about what’s happening financially in your business and also to minimise your overall accountancy costs. He should also be willing to provide help with financial planning, if required.
There are many ways in which your accountant can save you money, including helping you and your business pay as little tax as possible. But this can only happen if you keep him informed about what you are doing – so talk to your accountant when you do anything financially significant, such as a large purchase or the sale of major capital equipment. It may be that you would be better off leasing rather than purchasing, or delaying the sale until the next accounting period.
