5 Mistakes when choosing an accountant and 5 Solutions.
Choosing an accountant is a confusing process. Do we just use our friend's accountant ? Do we choose on price and perhaps an online provider?
The main mindset is that it is based on classing the accountant as an expense because book keeping is either done by a family member. So we are constantly trying to save money.
The first mistake is when the accountant makes errors. Expenses are misinterpreted. This can be solved by having a 30 minute chat when you sign on with the accountant. You can explain specific income and expenses.
The second mistake is basic adding . This may mean that the income tax or VAT bill is wrong. This is a big mistake because , as the business owner, you are liable to HMRC. This can be avoided by having a digital software , such as, Xero. Also you can use HUbdoc to scan your invoices.
The third mistake is missing deadlines and incurring penalties. This can be avoided by supplying paperwork on time.You can set up a WhatsApp group and keep reminders on your phone. Perhaps you can get the direct email or phone number of the employee looking after you.
The fourth mistake is accepting that the accountant can not help you to grow, You might remember how eager he/she was to sign you up. Why have you faded away for them ? It is probably because you are a medium or low fee customer. However, the accoutant knows other businesses that he /she can cross refer a warm lead to you. You should invite the accountant to a coffee and discuss your needs.
The last mistake is that an accountant does not know your struggle to meet your bills and pay employees on time. He/she may only speak with you on an annual basis. A solution would be to create a spreadsheet with how many sales you need to cover your costs and make a profit.