According to figures from the ONS (Office for National Statistics), only 42% of start up businesses are still trading 5 years after being set up. One of the main causes of business failure is poor financial management.
Your accountant should do more than just file your accounts and tax each year. Choosing a good accountant will help you set your business up for long term success.
A good accountant will provide a world of knowledge and experience to help you build a better business. Finding a good accountant could make all the difference.
Choosing Based On The Lowest Price
It may be tempting to choose your accountant based on price and go for the cheapest option.
There are numerous pitfalls from choosing the cheapest accountant, such as:
- You may have unqualified accountants working on your books.
- They will not have done their training with a larger firm of accountants (as is the norm for qualified accountants).
- They are likely to have a far higher volume of clients, which will impact the level of service you receive. An accountant who is stretched thinly between numerous clients simply can’t provide the same level of service to them all.
- They may not be able to attract a high calibre of staff due to having smaller staffing budgets. This will impact the level of accounting and advice that they can provide.
Simply put, you get what you pay for – certain corners will have to be cut with a cheaper accountant, either regarding the detail into which they delve into your accounts or tax, or the service you receive.
Choosing Based On The Quality Of Service
A quality accountant who values their time will charge more. Here is a few reasons why this is a good thing:
- Higher revenues lead to higher staffing budgets, this means they can attract a higher quality of staff.
- A more expensive accountancy is likely to be a Chartered Accountancy firm with more experience.
- There is likely to be fewer clients leading to there being more time for your accountants to better review your accounts and tax position.
- The extra time available and better level of service could lead to better tax savings.
- There will be more time for face to face meetings where you can discuss your business plans and get an experts opinion.
In summary, paying a minimal fee means you get a minimal service.
A good accountant will identify what service their client needs to push the business forwards, and will communicate the value to you. A good working relationship with a good accountant will be massively beneficial to growing your business!
The Audit and Accounts team at KJG, led by 3 of our Partners who boast over 75 years experience between them, are dedicated to helping you build an even better business. Book a meeting with them today, or call 0161 832 6221 to find out more.