Okay you have got your brilliant idea and have set up your company as this is the way you are going to make it big. But now you are a director there are certain obligations under company and tax law that you are going to need to comply with.
You are going to need to record all the transactions the company incurs through the bookkeeping and every year you are going to need to prepare a set of financial statements and a corporation tax return.
Now of course you can do all this compliance based work yourself but this time could be better spent working on the business and trying to make a success of that idea rather spending time trying to remain compliant for no reward.
So if your time could be better spent then the best person to help you is your accountant. Picking the right accountant is important not only should they help you to be compliant but they should also be able to guide you and your business to the next level.
So what are the factors you should take into consideration when making this decision?
An accountant with sector knowledge and experience
Your accountant should be able to demonstrate to you that they have sufficient knowledge of your sector. They can advise how similar companies in your sector are performing or what margins they are making for example.
Do they offer a fixed fee arrangement for their services as this will help you keep a control of costs. This will help to avoid any nasty surprises when the invoice lands on your desk.
An accountant should speak to you regularly and be proactive. There is not a lot that can be done after the event but by both parties communicating regularly then they should be able to come up with appropriate tax planning ideas to mitigate the company’s corporation tax or your personal tax.
Ask yourself does location matter. Historically this was an important matter but with the development of cloud based technology then both of you can look at the same data in real time no matter where you are. Modern technology such as video conferencing, skype allows you to still have that face to face meeting. Is the accountant set up for this?
Make sure the firm of accountant is regulated by one of the professional bodies such the Institute of Chartered Accountants in England and Wales (ICAEW) or the Association of Chartered Certified Accountants (ACCA). This is important as your accountant is required to maintain high professional standards as a member of one of these bodies which includes keeping their technical knowledge up to date.
How can Wisteria Help?
Wisteria Limited are a firm of chartered accountants with a broad range of sector experience. We offer a fixed fee arrangement but in addition offer our clients a free one hour quarterly catch up. We would love to discuss your brilliant idea so if you would like to know more then please contact us