accountant

How to choose the right accountant

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    Selecting the correct accountant will allow you to develop a reliable working relationship. Consider the location of the accountant and the way in which work will be divided. Think about how much you will have to pay them and whether they can help you lower your tax bill. Your company should base the decision regarding where to look for an accountant on what is most conducive to its success. Your accountant could be located in any part of the world, depending on how you wish to organise the business's financial affairs.

    Make sure they have a strong grasp of the financial regulations that are relevant to your company. Using business accountants who aren't certified, chartered, or registered is certainly an option; nevertheless, it may not be the best course of action. If your company's operations are performed using cloud-based software, you will most likely want the services of a cloud computing expert. If you are looking for a new accountant, the best option can already be in front of you the whole time. Make use of LinkedIn and other online networking platforms to tap into your social networks for more information on accountants who have been recommended by users of the platform.

    The selection of a new accountant is analogous to that of a new business partner. Finding the correct accountant will allow you to develop a reliable working relationship with a colleague on whom you can rely for sound advice and direction as your small business expands. What would you say are the most important things for you to keep an eye out for?

    Top tips for choosing an accountant

    After you have made the decision that it is time to hire an accountant, the following step is to select the accountant that you will work with going forwards.

    It is absolutely necessary to put in the effort required to complete this task thoroughly, and before getting started, there are a few things you should think about.

    You will need to give some thought to matters such as the location of the accountant, the way in which work will be divided, and the kind of accounting software you will employ.

    You should think about how much you will have to pay the accountant and whether or not they can assist you in lowering the amount of taxes that your company owes.

    One of the most important aspects of your company is the management of your finances; therefore, it is in the best interest of your company to delegate this responsibility to a knowledgeable and skilled individual.

    Finding the correct person can save you both time and money over the course of several years. The following is a list of items that you ought to think about when selecting an accountant for your business.

    Ask yourself if location matters

    It used to be critical for businesses to have their accountants work in close proximity to their offices. However, in today's world, an increasing number of businesses are managing their operations through the use of cloud computing and online collaboration.

    This indicates that location is not as much of a concern as it formerly was.

    If you use cloud accounting, both you and your accountant will be able to examine data in real-time that is comparable to one another, regardless of where you are.

    Your company should base the decision regarding where to look for an accountant on what is most conducive to its success. Your accountant could be located in any part of the world, depending on how you wish to organise the business's financial affairs.

    For instance, if you are willing to work via email, phone calls, video conferences, or other secure accounting software, you may be in New York while they are in London. This is because email, phone calls, and video conferences are all forms of electronic communication. If your accountant can work from anywhere in the world, you won't have to make any adjustments to accommodate their physical location. You are able to identify someone who is familiar with the particulars of your company or sector of the economy.

    On the other hand, you could prefer face-to-face contact and find it useful to have someone who can accompany you to business meetings. In this case, having someone who can attend meetings with you could be beneficial. If this is the case, then you will need to restrict your search to accountants who are either located in close proximity to your business or who are willing to make occasional trips to your location.

    Make sure that they have a strong grasp of the financial regulations that are relevant to your company, regardless of where they call home.

    Choose a certified or chartered accountant

    The practise of accounting is governed by professional bodies in many countries. These bodies oversee accounting qualifications and ensure that high professional standards are met. Professional accountants may be referred to as Certified Public Accountants (CPAs) or Chartered Accountants (CAs), depending on the country in which they are practising. Chartered Accountants, often known as CAs, are highly trained professionals who have earned a bachelor's degree in addition to gaining relevant job experience and passing a professional competence exam.

    Because certified and chartered accountants have a higher level of experience and training than other accountants, you can expect them to be able to offer value to your company from the very beginning of working together. In addition, if you envision your business expanding in the future, it is in your best interest to begin looking for a qualified accountant as soon as possible rather than postponing the decision.

    Using accountants who aren't certified, chartered, or registered is certainly an option; nevertheless, doing so may not be the best course of action for a firm to take. Bookkeeping, tax preparation, and general financial management are examples of activities that might not call for the services of a qualified or chartered accountant. However, if your business expands to the point where you require a loan or if you are ever subject to an audit, you will almost probably be required to have one.

    Look for an accountant with relevant expertise

    You will need the assistance of someone who has previous experience preparing tax returns and financial documentation for businesses with a size and revenue that is comparable to your own. If the majority of your company's operations are performed using cloud-based software, you will most likely want the services of a cloud computing expert.

    It is even better if they have worked with organisations that operate in market sectors that are comparable to your own, since this will help them grasp the specific requirements that your company has. You could wish to look into whether or if they serve customers of a greater scale. If they do, that is a good sign because you will know that they should be able to accommodate your growing needs over time. If they don't, that is not a good sign.

    You might also ask them for a customer list that includes the gross income of each company as well as the number of employees they have. Find out how their previous customers have evolved and grown over the years to get a sense of whether or not they will be able to meet the changing requirements of your organisation.

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    Talk to government and business associations

    Numerous national economies depend critically on the success of their local small business communities. Because of this, governments often try to foster their expansion wherever possible.

    As the owner of a small business, you should make use of the business advisers' networks that are available to assist you in selecting the appropriate accountant. Additionally, there are many non-profit organisations and local chambers of business that are eager to provide you with advice. Take advantage of these resources because they are provided for your benefit, and their guidance is typically provided at no cost to you.

    They are also excellent opportunities to network and engage in conversation with proprietors of other businesses. If you repeat this process a few times, you will likely find that other people who own businesses will recommend an accountant to you. If nothing else, this should make it easier for you to narrow the pool of potential interviewees down to a more manageable size.

    Tap into your social networks

    When looking for a new accountant, the best option can already be in front of you the whole time. To get started, enquire with any close friends or family members who already run their own small enterprises as to whether or not they can recommend their accountant.

    If that's the case, why? And if not, what are the reasons? The responses to both questions may come in handy at a later point when you are conducting interviews with prospective employees.

    It is important to keep in mind that selecting an accountant is a personal decision; therefore, what may be appropriate for the public relations company owned by your closest buddy may not be appropriate for your manufacturing company. Also, take into account the various organisational structures of businesses. It's possible that the best accountant for a company with ten employees won't be the finest accountant for a sole proprietorship.

    Make use of your connections online

    Even though Facebook is not the worst place to post a request for suggestions on an accountant, it may not be the greatest place to do it. However, posting the request on a network that is more focused on business could be helpful. If you already have a profile on LinkedIn, you can use it to look for accountants who have been recommended by other users of the platform. LinkedIn is one of the largest networks in the world.

    Five ways to use your social network for more information

    Make use of LinkedIn and other online networking platforms in order to explore a little deeper into the background of each candidate and find out things such as:

    Who are they connected to?
    Do they have access to a sizable network of seasoned professionals?

    How do they talk about their services?
    Are they enthused and enthusiastic about the task that they do?

    Have they received any recommendations from their clients?
    What kind of advice are these recommendations giving?

    What is their experience?
    How long have they been in this line of work, and what did they do before starting this company?

    What are their qualifications?
    Is this person a chartered or certified public accountant, a bookkeeper, or a financial counsellor, or do they hold some other type of accounting credential?

    Decide how the accounting work will be divided

    Bookkeeping and the accounting needs of small businesses are both within the scope and competence of accountants. The majority of the time, you can simply collect all of your bills and invoices into one package, give it to them, and they will handle everything else. However, it's possible that this strategy isn't the most effective all the time.

    Because accountants typically charge by the hour, asking them to perform mundane activities such as data entry is not the most efficient use of their time, which is time that you are paying for. Therefore, you need to assume responsibility and get more involved in the accounting process (if you can).

    This will provide you with a better understanding of your real-time spending and income as well as a heads-up on any prospective issues that may arise.

    For instance, you might make the decision to enter the fundamental accounting data internally before passing the work off to your accountant. After that, they will be able to take care of the more difficult responsibilities, such as reconciling bank accounts, filling out tax return forms, processing payroll, and calculating capital depreciation.

    You will find it much simpler to take part in the accounting process if you use accounting software of a high enough grade. It will make jobs easier to complete, such as billing, by automatically delivering the invoice and simultaneously recording its information. In addition, if the accounting software is hosted in the cloud, you will be able to grant your accountant safe access to your financial records with just the click of a mouse.

    Get someone proactive about saving your money

    There are some accountants who will do little more than manage your accounts and fill out the documents for your tax return, but the most effective accountants are more proactive. Therefore, prior to selecting an accountant for your company, you should enquire about the ways in which they might recommend cutting costs.

    For instance, what percentage of your operational expenditures do they believe you are able to deduct from your taxable income?

    If you operate as a sole proprietorship or as a consultant, are you able to reduce or eliminate some expenses, such as a portion of your phone bill, the cost of your vehicle, and possibly even your monthly rent or mortgage payment? What are the repercussions of acting in this manner? Your accountant needs to make sure you are aware of any potential problems.

    For instance, if you utilise your own residence as a place of business, you may have to pay additional taxes when you go to sell the property.

    Always keep in mind that there is a significant gulf between tax avoidance, which is typically within the law, and tax evasion in the majority of countries (usually illegal). You need an accountant who is so well-versed in the intricacies of tax law that they can lawfully save your company money while doing so. On the other hand, you don't want an accountant who goes too far with things and puts your company at risk of operating illegally.

    Do you need help with your accounting? Hillyer Riches is a trusted accounting and bookkeeping company in Australia. We perform cheap and quick tax returns for individuals. You can give us a call on (03) 9571 5333 or email us on info@hillyerriches.com.au.

    Be extremely cautious in this regard, as the final person responsible for paying the fine if the law is broken will be you, the owner of the company.

    Find out what software the accountant uses

    Most accountants have a particular piece of accounting software that they use. There is a good probability that they have been in company for a considerable amount of time and have grown accustomed to using a specific brand of software.

    This may present a challenge. There will be complications associated with the sharing of data if your organisation utilises a different kind of software.

    Although it may be possible to export and import data using a format that is appropriate, doing so may take a considerable amount of time and frequently result in errors.

    Email is approximately as safe as sending information on a postcard, so there is a possibility that sensitive financial information you transmit back and forth could be intercepted and viewed by a third party.

    Therefore, it is important that you search for an accountant who uses the same software as you do, or at the very least, one who is ready to do so. There is no logical reason why they shouldn't be able to use multiple kinds of accounting software for their various customers.

    This is especially the case if the software is simple to understand and use.

    It is in everyone's best interest if you can reach an agreement to utilise easy-to-navigate, industry-leading accounting software and to only trade files that have been appropriately encrypted. Choosing accounting software that is collaborative, hosted in the cloud, and has built-in encryption is an even more appealing alternative. Because of this, you won't have to worry about the dangers that are associated with trading information back and forth.

    Interview several candidates before you decide

    Do not fall into the trap of automatically agreeing to the first offer that comes your way, just as you would with anything else in life. Make it possible to evaluate a number of different accountants by setting things up so that you may do so side by side. After that, it will be much simpler for you to choose the one that is most beneficial to your company.

    An interview is a great tool that can help you determine how well you are likely to be able to collaborate with another individual. And by conducting a series of interviews, you will not only be able to identify better the type of accountant you require, but you will also receive access to free advice that is of great value. This may even assist you to determine the requirements of your firm in a more clear-cut manner.

    Always negotiate fees

    There is no one system that all accountants adhere to when determining fees to charge clients. There are those who may charge you by the hour, there are those who may charge a monthly retainer, and there are those who may charge a portion of your total revenue.

    The ability to negotiate should already be a part of your skill set if you are the owner of a small firm. If it isn't, you'll need to figure it out and then apply it here.

    You should make sure that all of the accountants you interview provide you with written quotations, and then you should walk away and thoroughly compare them. Think about a variety of different possibilities; one pricing model might make sense when your company is just starting out, but it might become less appealing as it expands.

    There are no absolutes in this world. You have the option of requesting a scale that varies according on the amount of business that is transacted with you, a combination manner of pricing, or any other of a large variety of possible arrangements. If you don't enquire, you'll never know whether or not the accountant is willing to agree to the price structure that you have proposed.

    Do background checks

    Before you put pen to paper to hire an accountant, you should make it a priority to speak with a few of the accountant's previous customers. You can seek the assistance of professional services for assistance with this, but if the accountant is genuine, they should be willing to provide you with a variety of contacts that you can use as references.

    This will assist in confirming some of the information that has been provided to you by the accountant. You will also get the opportunity to obtain first-hand information regarding the relationship that the accountant maintains with their other customers.

    When you are contacting referees, exercise caution. Avoid burdening them with a large number of written queries that need to be answered. It is possible that you will learn much more about your prospective accountant through a ten-minute phone call as opposed to filling out a three-page form consisting of generic written responses.

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    Learn to use and trust your intuition

    You are the owner and operator of your own business, you have previous experience, and you have a reasonable concept of what you are doing at this point. Because getting along with people is such an important component of being successful in business, it's likely that you're good at it.

    Therefore, put such abilities to good use. The processing of information that takes place in the background of our thoughts is sometimes referred to as intuition. It's not magic; it's just thought that happens below the level of our conscious consciousness. It is a powerful business tool in and of itself, provided that it is used appropriately.

    When seeing an accountant for the first time, it is important to listen to your gut instinct. In addition to logical considerations such as location, pricing, experience, and references, you should ask yourself if you are comfortable entrusting this individual with the most sensitive aspects of your company. If you believe that you will be able to collaborate with them for the foreseeable future, then that is excellent news.

    But if you get the impression that you shouldn't continue, it's generally best to back away. It's possible that your subconscious mind has picked up on a lot of indications (such vocal stressors and body language) that it doesn't like. Although intuition isn't always right, you shouldn't discount it when making a decision on something as significant as hiring an accountant for your company.

    Good accountants will help your company grow

    There is a very solid explanation for why the nature of our working relationship feels more like a marriage than a business transaction. It is not a decision that should be made flippantly because your accountant will end up being heavily involved in the day-to-day operations of your business. You will require someone in whom you can place your trust, who possesses the appropriate experience, and who will be there for you whenever you require their assistance.

    Accountants who are skilled at managing complex financial work and providing advice on practical business concerns are invaluable to the growth of their clients' businesses. This will absolutely result in cost savings for you, both immediately and over the course of time. As long as you make an informed decision, there is no way that you will make a mistake. The best ones will be your partner in all except the name.

    Choosing an accountant

    Support for your taxes

    Your tax return can be prepared and submitted on your behalf by an accountant.

    If you're a worker

    It may be in your best interest to seek the advice of an accountant if you have multiple sources of income, such as from multiple jobs or investments. They are also able to assist you in claiming all of the tax deductions to which you are entitled and validating the accuracy of your tax return. Lastly, they are able to assist you with preparing your tax return.

    If all of your income comes from a single source, such as a salary or earnings, filing your tax return will be far less complicated.

    Using myTax, you are able to prepare your own tax return online at no cost at all.

    If you are self-employed

    If you are self-employed and run your business as a sole proprietorship, as a contractor, or as a freelancer, you may find that the aid of an accountant is beneficial to you.

    They are able to assist you with your business activity statements (BAS) as well as your pay-as-you-go (PAYG) instalments. They are also able to provide you with information regarding the deductions you are eligible to claim and guidance regarding tax and super contributions.

    Support for your business

    If you are the sole proprietor of your company, hiring an accountant to assist you in establishing and maintaining your company's financial records is highly recommended. They can also assist you in meeting your financial commitments, such as tax duties.

    As your company expands, the competent accountant will also be able to provide you with advise and direction concerning your financial records.

    They are able to assist with:

    • installing software for accounting and bookkeeping purposes
    • establishing the legal framework of your organisation, such as by forming a company, corporation, partnership, or operating as a sole proprietor
    • submitting an application for an ABN or ACN
    • interacting with the Australian Taxation Office on your behalf
    • accounting for profit, loss, and projections
    • paying employees or independent contractors

    Selecting the ideal accountant

    It is a great place to start your search for an accountant if you ask people you already know for their recommendations.

    Check to see if the accountant is a member of any professional organisations before hiring them. It is mandatory for members of these bodies to possess a tertiary qualification that has been officially acknowledged, in addition to meeting a set of predetermined professional requirements.

    It is prohibited for anyone other than tax preparers who are registered with the government to actually file tax returns. Check to see if the list of registered tax practitioners that is maintained by the Tax Practitioners Board includes your accountant.

    An accountant needs to have a licence to practise Australian financial services (AFS) in order to be able to give advice to clients regarding investing or planning for retirement. Verify that your accountant have the necessary credentials to offer investing advice.

    How to approach an accountant

    You should enquire about the following matters with an accountant when you first talk to them in person or over the phone:

    • their training and authorisation
    • what organisations they are a member of
    • their offerings and areas of expertise
    • their principal clientele
    • their costs, such as what they charge and whether they expect to be paid out of your tax refund.
    • how you want to send your paperwork, for as by using a template or certain software
    • those who will handle your account
    • where they can be found
    • their response to complaints
    How to choose the right accountant
    1. Top tips for choosing an accountant.
    2. Ask yourself if location matters.
    3. Choose a certified or chartered accountant.
    4. Look for an accountant with relevant expertise.
    5. Talk to government and business associations.
    6. Tap into your social networks.
    7. Make use of your connections online.

    Go to an association like CPA Australia, the Institute of Chartered Accountants Australia or the Institute of Public Accountants and find a professional accountant with a public practice certificate. There's nothing like word-of-mouth referrals to find a good accountant in your area.

    These four branches include corporate, public, government, and forensic accounting.

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