Choosing the right contractor accountantsChoosing the Right Contractor Accountants – 5 Top Tips
If you are looking for a reliable accountant that specialises in contractor accounting, then there are a few things you must consider before you finally choose which one to use.
Whether you are new, or highly experienced to operating via your own Limited Company, you must carry out due diligence when selecting your specialist contractor accountant. We have created 5 top tips for you to consider;
5 Tips when Choosing the Right Contractor Accountant
1. What Accreditations do they have?
It is important that you choose an accredited accountant as it confirms credibility, compliance, expertise and professionalism. As a director of your own Limited Company, you become responsible for running your Limited Company compliantly. If you choose an accountant who is un-regulated and then somewhere along the line they make a mistake in you accounting affairs, it is you who will be held ultimately responsible by HMRC. If you choose an accredited accountant, you will get best advice, great service and last but not least, total peace of mind.
Look for these accounting accreditations when choosing you contractor accountant:
Ø CIMA – Chartered Institute of Management Accountants
Ø ACCA - Association of Chartered Certified Accountants
Ø AAT - Association of Accounting Technicians
Your accounting fees should be a fixed monthly fee and should cover all the administrative dealings with the tax authorities; tax returns, VAT registration, PAYE administration and end of year accountants. Your accountancy provider should specify clearly what is included in the service package. Typically you can get a complete accounting service for around £130 per month, where all the administrative headache of running a Limited Company should be borne by your accountant, leaving you to concentrate on contracting.
3. Service Levels – Check for Awards, Standards and Acclamations
There is nothing worse than being past from pillar to post when all you want is a straight answer to a basic question. It is important that the intricate service levels provided by your accountant are up to scratch. You should be given a dedicated Client Manager who will deal with your day to day financial affairs and also be on hand to answer any queries you have.
Look out for these awards and acclamations:
Ø Accountancy Age Awards for Excellence
Ø Professional Contractors Group ‘Quality Accountant’ award
Ø ISO 9001:2008 status
4. Specialist Industry Knowledge
Being specialists in contractor accounting, your accountancy provider should have in-depth knowledge on the following subject areas;
Ø Income Shifting
There are other industry specific topics which your accountant should be able to provide advice on should you require it.
Look out for these Independent Industry Bodies (These bodies audit contractor accountants and ensure they are up-to-speed with crucial hot topics which could affect you personally);
Ø Professional Passport
Ø APSCo (Association of Professional Staffing Companies)
You can’t beat looking into what other contractors think about the accountancy provider. Furthermore, there is no harm in having a quick look into what testimonials they have and how many.
For more information on tailored accounting services for contractors call for some free advice on 0800 737 3178 or visit Contractor Accounting, at www.danbro.co.uk