Accountant's don't need to be qualified!
Yes, that's true. Anybody can call themselves an ‘accountant’, even if they have NO accountancy qualifications!
To protect your business always choose a qualified accountant. Qualified accountants will be either:
Chartered Accountants (identifiable by the designatory letters ACA or FCA)
OR
Chartered Certified Accountants (identifiable by the designatory letters ACCA or FCCA)
You can find an accountant for your business from either of these online directories:
ICAEW Directory of Firms
ACCA Directories Online
Advantages and benefits of using a qualified accountant
By using a qualified accountant you can be sure that:
- they have undertaken a rigorous programme of study, passed numerous examinations and had extensive practical work experience before qualifying
- they undertake compulsory continuous professional development to ensure their knowledge is up to date and their skills are maintained
- they are bound by strong and enforceable rules relating to ethical and professional conduct
- their professional body undertakes regular checks on them and their business
Do you need an accountant?
You don't have to use an accountant, even if you're a limited company, although limited company accounts have very specific requirements and can be complicated. If your turnover is over a certain amount you will need an official Audit by a qualified Auditor who will be an accountant (See 'How to set up and run a limited company' for more information). However, using an accountant will give you peace of mind knowing your tax returns have been completed properly and that you have rightfully claimed tax allowance for as many of your costs as possible.
But did you know accountants can do much more than just fill in your tax return? You can make sure you get the very best information and advice for your business by using a qualified accountant.
What an accountant can do for your business
Provide pre-start-up business advice
You can speak to an accountant at any time regarding financial or business planning. However you may find it particularly useful to find an accountant before you start as they can provide guidance on the best structure for your business (sole trader, partnership, limited liability partnership, limited company) as well as any legal and tax issues you need to consider.
Give advice on raising finance
The way you finance your business has an important effect on profitability. Your accountant can advise you on such things as whether new capital equipment should be leased or purchased, whether cash for your business should be raised by issuing more share capital, taking out a loan or increasing your overdraft, and how to invest any spare cash, either temporarily or more long term. Check out the SME Funding Adviser Scheme run by the Institute of Chartered Accountants in England & Wales.
Give advice on running and managing a business
An external, independent, professionally qualified, and impartial view of your business can be a great help, especially if you’re a sole trader and don’t have any colleagues to discuss plans or bounce ideas off. An accountant can help you with translating ideas into plans and can help you with profit forecasts, break even analysis and cash flow forecasting, and with setting systems in place to monitor business performance.
Look after the finances and tax
Good record keeping is an essential requirement for monitoring the financial health of your business. An accountant can suggest the most practical way for you to keep your business’ financial records in order. It is often not necessary to invest in expensive computer software to keep your records, simple spreadsheets or even paper based systems are sometimes all that is required. You can keep your own books in order, employ a bookkeeper or use your accountant to do it for you.
You may find it cheaper to use a bookkeeper rather than an accountant for basic business record keeping. See our article on What is a bookkeeper and why do you need one for more information.
Planning and managing growth
If your business grows quickly or unexpectedly your accountant can advise you on how to manage the additional financial requirements so you have adequate stock and working capital to manage the increased demand. They may also advise you on when and how to outsource functions you previously managed internally such as payroll and bookkeeping, HR, IT and so on.
Accountants can also advise you on how to assess the value when you’re buying or selling all or part of your business and on the most profitable and tax efficient way to undertake a merger with another business.
Undertake annual audits
If your annual turnover is more than £5.6m,you are required by law to have a formal audit of your company finances . If your turnover is significant but below this threshold you might like to ask your accountant what audit or assurance services they provide, as it can be beneficial to have a formal independent review of your business. Audits for companies whose turnover is over the £5.6m threshold must be carried out by a qualified accountant who is also a registered auditor.
How to find an accountant who’s right for you
Both the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA) have online directories of their member firms.
ICAEW Directory of Firms
ACCA Directories Online
Accountants get involved in a wide variety of activities so take time to find one that has experience in the areas your business is involved in and one that you feel you can build an ongoing relationship with.
From the directories above, or by personal recommendation, make a short list. Phone or arrange to meet with these firms to discuss your requirements – many will offer a free half hour introductory session. Consider whether you have a specific problem you need assistance on or whether you want general advice at this stage.
Always make sure you meet the person who will be advising you and make sure you fully understand the charging structure - if in doubt, ask!
Accountant's don't need to be qualified!
Yes, that's true. Anybody can call themselves an ‘accountant’, even if they have NO accountancy qualifications!
To protect your business always choose a qualified accountant. Qualified accountants will be either:
Chartered Accountants (identifiable by the designatory letters ACA or FCA)
OR
Chartered Certified Accountants (identifiable by the designatory letters ACCA or FCCA)
You can find an accountant for your business from either of these online directories:
ICAEW Directory of Firms
ACCA Directories Online
Advantages and benefits of using a qualified accountant
By using a qualified accountant you can be sure that:
- they have undertaken a rigorous programme of study, passed numerous examinations and had extensive practical work experience before qualifying
- they undertake compulsory continuous professional development to ensure their knowledge is up to date and their skills are maintained
- they are bound by strong and enforceable rules relating to ethical and professional conduct
- their professional body undertakes regular checks on them and their business
Do you need an accountant?
You don't have to use an accountant, even if you're a limited company, although limited company accounts have very specific requirements and can be complicated. If your turnover is over a certain amount you will need an official Audit by a qualified Auditor who will be an accountant (See 'How to set up and run a limited company' for more information). However, using an accountant will give you peace of mind knowing your tax returns have been completed properly and that you have rightfully claimed tax allowance for as many of your costs as possible.
But did you know accountants can do much more than just fill in your tax return? You can make sure you get the very best information and advice for your business by using a qualified accountant.
What an accountant can do for your business
Provide pre-start-up business advice
You can speak to an accountant at any time regarding financial or business planning. However you may find it particularly useful to find an accountant before you start as they can provide guidance on the best structure for your business (sole trader, partnership, limited liability partnership, limited company) as well as any legal and tax issues you need to consider.
Give advice on raising finance
The way you finance your business has an important effect on profitability. Your accountant can advise you on such things as whether new capital equipment should be leased or purchased, whether cash for your business should be raised by issuing more share capital, taking out a loan or increasing your overdraft, and how to invest any spare cash, either temporarily or more long term. Check out the SME Funding Adviser Scheme run by the Institute of Chartered Accountants in England & Wales.
Give advice on running and managing a business
An external, independent, professionally qualified, and impartial view of your business can be a great help, especially if you’re a sole trader and don’t have any colleagues to discuss plans or bounce ideas off. An accountant can help you with translating ideas into plans and can help you with profit forecasts, break even analysis and cash flow forecasting, and with setting systems in place to monitor business performance.
Look after the finances and tax
Good record keeping is an essential requirement for monitoring the financial health of your business. An accountant can suggest the most practical way for you to keep your business’ financial records in order. It is often not necessary to invest in expensive computer software to keep your records, simple spreadsheets or even paper based systems are sometimes all that is required. You can keep your own books in order, employ a bookkeeper or use your accountant to do it for you.
You may find it cheaper to use a bookkeeper rather than an accountant for basic business record keeping. See our article on What is a bookkeeper and why do you need one for more information.
Planning and managing growth
If your business grows quickly or unexpectedly your accountant can advise you on how to manage the additional financial requirements so you have adequate stock and working capital to manage the increased demand. They may also advise you on when and how to outsource functions you previously managed internally such as payroll and bookkeeping, HR, IT and so on.
Accountants can also advise you on how to assess the value when you’re buying or selling all or part of your business and on the most profitable and tax efficient way to undertake a merger with another business.
Undertake annual audits
If your annual turnover is more than £5.6m,you are required by law to have a formal audit of your company finances . If your turnover is significant but below this threshold you might like to ask your accountant what audit or assurance services they provide, as it can be beneficial to have a formal independent review of your business. Audits for companies whose turnover is over the £5.6m threshold must be carried out by a qualified accountant who is also a registered auditor.
How to find an accountant who’s right for you
Both the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA) have online directories of their member firms.
ICAEW Directory of Firms
ACCA Directories Online
Accountants get involved in a wide variety of activities so take time to find one that has experience in the areas your business is involved in and one that you feel you can build an ongoing relationship with.
From the directories above, or by personal recommendation, make a short list. Phone or arrange to meet with these firms to discuss your requirements – many will offer a free half hour introductory session. Consider whether you have a specific problem you need assistance on or whether you want general advice at this stage.
Always make sure you meet the person who will be advising you and make sure you fully understand the charging structure - if in doubt, ask!