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6th October 2011, Page 24
6th October 2011
Page 24
Page 24, 6th October 2011 — Number crunching
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Which of the following most accurately describes the problem?

Every business needs an accountant – but are you paying more than you need to?

Words: Jason Piper Accountants are in business and need to charge for the advice they give you. The hours taken on dealing with a tax investigation can soon rack up and leave you facing a fouror ive-igure bill in a surprisingly short time. So how can you keep those bills to a minimum?

1 Know what you need from your accountant. Most hauliers just need their accounts prepared, plus updates and guidance on rule changes and good inancial practice. You can get these from any chartered accountant without paying for the extras.

2 Shop around. Once you’ve worked out exactly what you need, ask around for recommendations and seek a quote. Be honest about what you’ll expect your accountant to do. Some practices offer 24-hour helplines with free advice by phone; others may offer a cheaper basic service, but have a longer list of things that they charge for as extras. If you’re going to use the extras, consider an all-in service, but don’t waste money if you only need occasional advice.

3 Be prepared. If you’re meeting to discuss the year’s igures, decide what you want to ask your accountant and start considering what they might want to ask you. Make sure to call before the meeting to ask if there’s anything they wish to discuss. It will save you

paying them to sit licking through your records.

4 Make your accountant’s life as easy as possible. If you give your accountant a carrier bag full of unsorted receipts at the end of the year, you can expect to pay for his time in putting them all into order and then working out what they’re for. If you can give him a clearly divided ile with everything in order and referenced, all you’ll pay for is the writing up. Enter records at least weekly, otherwise it’ll grow to the point where you won’t be able to do it. Then when it comes to year-end, your accountant will probably have fewer questions for you, and those they do have will be easier to answer.

5 Consider changing how you work. Ask your accountant if there’s a particular format they like to receive records in, which could help cut your bill. Of course that’s not going to work if the accountant uses expensive software that you’d need to buy – but if it can import data from a spreadsheet, it may be worth considering.

6 Know what you’re buying. In other words, make sure both of you know upfront what you’re expecting from the service, and what you might expect to pay extra for.

7 Pay promptly or query promptly. Accountants are better disposed to a prompt payer

than a hardcore skinlint. More importantly, if you have a problem with your accountant’s fees, let them know straight away and discuss the problem. If you can’t sort it out, you’ll be able to end the relationship and ind an alternative.

8 Talk to your accountant about what you could do between you to reduce his costs without affecting the service you get, or the amount that you have to do. Ask about monthly direct debits, to ease cash low for you both. Many practices offer a discount for this.

9 Take advice. If your accountant suggests applying for a particular grant, then apply as soon as possible, as many have time limits. If he or she recommends saving towards your income or corporation tax bill, or switching to one of the VAT schemes for small businesses, then do it. After all, it’s in their interest that you make as much money as possible in the long run.

10 Expect to pay for good advice. Knowledge is your accountant’s stock in trade – you wouldn’t expect to give him your services free, so don’t expect it of him. In the long run, such advice will save you money. n ● Jason Piper is a technical oficer at the Association of Chartered Certiied Accountants.


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