Employing the right accountant is very crucial to a business. The perfect accountant is the one who can manage your funds seamlessly and ensure your compliance to the British tax laws. Landing with the wrong accountant will have the businesses in soup ending up with wrong financial strategies, choices and leads to poor tax savings.
Business owners should find an accountant in the UK who is well versed with the ins and outs of the British tax code and drafts the best financial strategy for you to pay the taxes only that you are entitled to pay and not a penny more.
Self-employed individuals use a self-employment tax calculator available online to get an idea of their tax liability. But a seasoned accountant would be able to tell you the various tax saving ideas for you to avail from the government.
Are you kept in full light of all the financial matters of your business? Is the money that you are paying your accountant every time is being justified? If not, then it might be a bad sign that your accountant is not being transparent enough. Even though you don’t understand the financial matters, it is the prime duty of the accountant to make you understand every financial detail and every expense (including the fees to the accountant) of the company.
Any talented and straightforward accountant will put in their best efforts to save the most taxes and help you comply with tax laws. If your accountant suggests you to resort to tax evasion strategies that are illegal, then stay away from them. Tax evasion schemes suggested by bad accountants are often traps which ends up in bankruptcy, spoils your reputation and a huge amount of penalties.
If the commitment made by your accountant to meet you as per your arrangement is not being honoured repeatedly, then it’s a sign to switch the accountant. And if your phone calls are not being answered when you need them the most, then you can find another accountant for your accounting services.
Technology in accounting space is rapidly growing and changing the way accounting is done for businesses of every level. There are many accounting software, tools, and solutions with nominal costs that one can use to speed up the accounting process. If your accountant is still using spreadsheets to calculate your business financials, then you may have to get rid of him and get a new accountant who is well versed in harnessing the potentials of technology in accounting.
Following a strict code of confidentiality about your financials is the most expected trait of any accountant. If there are hints of any lapses in confidentiality of your accounts through your accountant, no other good reason would be required to keep them around.
Switching from an existing accountant to a new one is often deemed to be a tedious process. The transition from old to new accountant begins with finding a new accountant in the UK. Refer to our article here.
Then, end terms with your existing accountant amicably as per the terms and conditions of the contract honouring the notice period. The transition process will involve a lot of communication and transfer of knowledge from your old accountant to new one.
The new accountant will be sending a ‘Professional Clearance’ letter to your old accountant stating that they will be taking charge of your accounting process. This will be an opportunity for the accountants to discuss your financials. Once their discussion has reached to an amicable conclusion, the old accountant will send all the key information of your financials like financial statements, tax returns, corporate tax calculations, PAYE scheme references, etc. to the new accountant.
After analysing your financial landscape from the information provided, your new accountant will suggest the financial strategies and a suite of accounting services for your business.