Have you taken the leap from employment to entrepreneurial freedom? If you have fret not, you are not alone. Following the pandemic and changes in working patterns, many people have made the leap with you.
You’ve probably already thought about hiring an accountant. Depending on the size of your business you might be thinking of retaining a permanent bookkeeper all the way through to hiring an existing accounting practice. Whichever way you go picking the right accountant for you is a very important decision for your business.
So you’ve done it. You’ve set up a business. It’s time now to find that perfect accountant for you. Where on earth do you begin? Well here are a few steps to help make things easier.
Step 1: Accountant for your small building firm – what do you actually need?
Sit down with a pen and paper and figure out what your pain points are. Are you struggling to get invoices out the door quickly enough to secure the business? Are you spending hours and hours a week chasing payments when you could be on a job? Do you need help running payroll or vat returns? These questions will help determine what you need and are absolutely specific to your business’s circumstances.
Step 2: Dig a little deeper.
It’s important when choosing an accountant for your small building firm to do your research. Naturally, the best route to find a great person to work with is by reaching out to your professional network (try LinkedIn). If that doesn’t work for you then it’s time to start looking at online reviews. Once you’ve created a shortlist, let’s say 3, then there are a few more things to consider.
Ensure that they align with your business.
Remember those pain points we spoke about earlier? How good will they be at handling them? Did they identify them during your initial chat? Do they speak about those pain points on their website? Are they hands-on accountants or will they be taking a back seat? A less proactive accountant might leave you to manage your deadlines for example.
What’s their fee structure?
Let’s face it, sometimes costs come up. It’s important however that you understand your commitments from the get-go. Are you charged a monthly rate or is the work done hourly?
As a small business yourself, the last thing you want at the end of the month is a surprise bill. Equally, if your business is managing hundreds or thousands of transactions a month then you’ll have to consider the time this takes.
Step 3: Insist on an Engagement Letter.
After putting in all the hours to ensure you are hiring the right accountant for your small building firm, remember to safeguard your investment. An engagement letter can do just that. Take the time to read it thoroughly as it’ll be the reference point for any potential challenges down the road. An engagement letter should clearly outline the fee structure and also who’s responsible for what and when.
Make sure you start off and stay on, the same page as your relationship develops.
Step 4: Ask lots of questions.
Most business owners are not natural accountants. If they were they probably wouldn’t be looking to hire one right?
Make sure you take the opportunity to ask lots of questions. Do they understand your business and again those pain points we spoke about? Do they have a track record of getting payments in your bank account sooner rather than later?
The questions you ask will be suited to your needs but a top tip is, no matter what, ask lots of them.
How to choose an accountant for your small building firm – summary…
Remember it’s all about understanding your pain points – what is the problem you want them to fix? Ask questions and make sure you get on with your accountant. You’ll be asking them to get involved from the very early days. Got questions about how Calathea Accounting can help you – feel free to get in touch today.
