How do you know if you have a good accountant?

Do you think you have a good accountant? How do you know?
We recently took on a new client who came to us because their existing accountant was retiring, no other reason. We found a multitude of mistakes in the previous years accountants. Some quite big figures that meant their profits last year were wrong and, more importantly for the client, their tax was also wrong. That isn't a conversation we want to have with a new client and it certainly wasn't one they wanted to hear
Not all accountants are the same and you wouldn't necessarily know if yours was making mistakes.
So how do you find a good accountant? Here are some key points to consider:
1. Firstly, is your accountant qualified? Alarming as it is, people with no formal qualifications can trade as accountants. You may think a qualification isn't everything, after all plenty of jobs can be carried out with training by experience, and you would be right. However, the key point is that a qualified accountant is required to keep up to date with legislation, including tax rules, and is subject to regulation. If your accountant has no formal qualifications then they are more likely to be out of date and make mistakes. Ask your accountant what qualifications they have and who their professional body is - they should be happy to tell you.
2. How easy is it to get hold of your accountant and are they willing to talk things through with you? A good accountant will always be happy to have a conversation with you around financial decisions you are thinking of making in your business, or around the financial admin in running your business. If your accountant is always trying to get you off the phone, or doesn't respond to your emails then that is probably a red flag. You want an accountant that is willing to work with you to help you grow your business.
3. Are they happy to explain things to you? They may make perfect sense to an accountant but a profit and loss and a balance sheet can be confusing to most people. We get that you don't necessarily want to deal with the "money stuff" and you want to leave all that to the accountant but this is your business and you should have an idea about where your business is financially. When you ask your accountant to explain why your tax bill is up when your profits are down, or why you can't claim a particular cost through the business, how happy are they to talk things through with you so you understand?
Does your accountant pass the test?
We get it's a hassle and accounts and tax are boring (or so non-accountants tell us!) and you just want to get it sorted. It's much easier to just use that accountants you drive past, or the one Google tells you is closest or the accountant your mate uses as he says they are alright. However, working with the wrong accountant can cripple a small business so it's important to make sure you try and get a good one.
At Marshall Smalley we are happy to say our practice is regulated by the Institute of Chartered Accountants in England & Wales (ICAEW). Our staff are all either qualified or working towards formal qualifications (check out our team section on our website to see individual qualifications). We are always happy to talk to our clients and we work as a team to deliver a quality service to help enhance your business.
Get in touch for an informal chat about how we could help your business. Give us a call on 0115 956 9452 or email us at info@marshallsmalley.com