6 Tips Which Will Transform Your Exceptional Idea into a Prosperous Business – Tip 4

This is the fourth of six articles which will assist you in transforming your great idea into a successful business. The tips listed below sequentially follow the steps you need to make. We have already covered quite a lot, so today we will have a look on Tip 4. 

1. Have a stunning, different, exceptional idea
2. Choose the most suitable structure for your business
3. Think branding
4. Appoint an accountant
5. Get ready to launch
6. Open for business and start making money 

Tip 4: Appoint an accountant

1) Choose an accountant before you start your business.

 At this stage you will have to foresee any future requirements you might have, areas where you need support and what is responsibilities will be given to your accountant. Consider the complexity of your accounting needs, including raising external finance. Do not underestimate your needs as just end-of-year financial statements and tax returns.
It is easy to obtain guidance on those. As a new business in the current economic situation you are likely to require support throughout the year. At the end of the day, a good accountant may both save you money and provide advice, enabling you to run your business more successfully and stress free.

  

2) You should appoint a fully qualified accountant.
Look for these qualifications on the company's website, at a visible place in their office or any promotional material of the company. If you cannot find anything, ASK. Although there is only little likelihood this will happen, beware of ‘accountants’ who are not qualified. They may be very talented and polite people but unqualified accountants are unlikely to carry liability insurance and any apparent fee savings may turn out to be costly in the long run.

Therefore, ensure that the accountant you choose has a professional qualification and belongs to a professional body such as The Institute of Chartered Accountants (ICA); The Association of Chartered Certified Accountants and (ACCA); The

 Chartered Institute of Management Accountants (CIMA).

3) Experience with small businesses and contacts in your sector could be invaluable qualities.

This may not seem essential, but experience with small businesses and key contacts in the sector your business operates in could be a huge advantage. For example, many businesses have been able to source valuable customers or suppliers through the network of a trusted accountant – at no extra charge!

These are already a solid base for a promising relationship. They are also good indicatorsof the accountant’s suitability and his/her ability to provide valuable business insight into your area of speciality. This is highly relevant issue for companies whose business model involves lots of online transactions, for instance. 
This relates to point one. If you have an accountant before your business begins operating, they can support you from the very beginning.  

4) Less is more.

As you would start as a small business, you might find it appropriate to appoint an account who is part of a smaller business, too. This way, the chances for a good match between you and your accountant are bigger. Small businesses tend to experience the same difficulties on the way. Therefore, your accountant will not only understand your finance but also you. For this reason, smaller accountancy firms can often be better suited to smaller businesses. 

Extra perk is that they have enough time to run your finances properly.If the accountancy firm you choose have practice of limiting the number of clients an accountant can serve, then you will be more valuable for them and you will have all their attention when you require it. 

So when you make up your mind on what makes you feel more comfortable: working with only one person dedicated to your business (typical of smaller firms) or relying on a larger team that communicates information on your account.

5) How much will it cost you?

I would advise you compare the fees of several firms. Then arrange an appointment to meet the people that you are going to work with. Do not forget that despite accountants, they work as sales people when they have to sign you up. Even if they appear very professional and promising do not forget to collect all the information you need. Make a list of question and understand in detail what is on offer. 

Key points of this list should be:
a) How much, how and when will you be charged for the service?
b) What is included in the service
c) Can the charges be arranged upfront?
d) Will you be charged for every individual question you may have?
e) Does your accountant charge per hour?
f) What is their availability? 

As with any business or financial decision, value for money should be a key consideration when deciding between accountants. Compare the fees on a few accountants and see if any of your prospective accountants will beable to adapt their fee and charge schedules to accommodate possible cash-flow pressures. Know what you want and you could work out a much better deal. 

6) Let’s talk value.

As I have mentioned a number of times, your account may be priceless business adviser and source of valuable contacts. Their primary responsibility is to ensure all your accounts are in order, but it is mutually beneficial if they deliver specialised expertise and resources that will guarantee a successful business relationship. This way, theywill add value to the service you initially sought for, which should be key consideration and an essential part of your decision making. 

Add the following questions to your list:
g) Will they complete your self-assessment returns?
h) Can they provide bookkeeping?
i) Will they contact you on their own initiative to make suggestions how to optimise your finance?
j) Are they ready to advise you and refer you to the right partners? Is their network of contacts strong enough?
k) Is there anything that they can do guarantee security to you, your family and your business – external funding, insurances, government programmes such as Business Property Insurance, Liability Insurance, Worker's Compensation Insurance, Other Insurance Coverage, Excess Liability Coverage, Employment Practices Liability Coverage and Life Insurance.  

7) What do their existing customers say?
Ask to speak to existing clients before signing up. If the accountancy firm is proud of the service they provide, they will be more than happy to arrange this for you. A good way to find an accountant is to be referred by a happy customer. Don’t underestimate the value of speaking to other businesses or acquaintances about their experiences working with an accountant. It may also prove valuable to talk to non-clients to find out their perception of the organisation.

8) Find the best match.

It is important to trust the person/ agency handling your finances. Try to contact at least 3-4 accountants and see who makes you feel most comfortable and who gives you the security you need. When you first meet a prospective accountant, you will know soon enough if you see eye-to-eye.Broken communications between you and your accountant may lead to financial confusion, loss for your business, stress and ultimately to expenses you will have to pay.

Don’t rush the decision! An accountant is an essential advisor for any business, so investing time in choosing the right person for you is imperative in order to gain maximum value. Up-to-date payments and ordered accounts will allow you to concentrate on building your business and planning for the future. Make sure your accountant keeps in touch with your business - not just at year end! If you feel your current accountant no longer meets your requirements for whatever reason, get a new one!