Changing accountants can be a big decision. Not all accountants are created equally. There’s a lot of differences in terms of price and service levels.
Understanding who you can trust and have confidence in can be tricky.
As a small business owner, you need to be sure that you are getting the most out of your accountant.
After all, they are handling your finances! To help you make an informed decision, we’ve put together a list of questions that you should ask any potential accountant before using their services.
We’ve broken it down into 6 key areas; price, due diligence, technology, services, service levels, knowledge levels.
By being sure to do your due diligence and asking as many questions as necessary to feel comfortable with your choice, you can find the right accountant and it can make all the difference in helping your business succeed!
Let’s get stuck in!
Price Based Questions
You know that cost control matters. So, when you’re considering using a new accountant, it’s important to understand all the costs involved.
Here are some price-related questions to ask an accountant before you award your business.
How Much Do You Charge?
This is the first question you should ask any potential accountant. Of course, you want to know how much their services will cost. But, more importantly, you want to know if their fees are fixed or variable.
Variable fees can be a bigger risk for small businesses because they can fluctuate based on the amount of work required.
Fixed fees are usually a better option for small businesses because you’ll know exactly how much you’ll be paying each month.
Do You Offer a Free Initial Consultation?
Most accountants offer a free initial consultation (and all of ours do!) so that you can get to know each other and decide if it’s a good fit.
This is also a great opportunity to ask questions about their services and fees.
You can also use this initial free consultation to skill check the accountant by asking them about the specifics of your business and hearing where they can add value.
What’s Included in the Monthly Service Fee?
Be sure to find out what’s included in the monthly service fee.
Some accountants charge extra for things like bookkeeping, preparing and filing taxes, etc. You’ll want to make sure that all the services you need are included in the monthly fee.
All Go Impartial accountants work on a fixed fee basis, so you’re covered on that front with us.
Are Your Services a Fixed Fee, Variable Cost, or Both?
Fixed fees are usually better for small businesses because they provide predictability and stability.
With variable costs, however, you could end up paying more if the accountant has to do more work. Be sure to ask about this before making a decision.
It’s reasonable that even fixed fee accountants will have a variable element to their services – such as if you require work that was not included in the original scope of work, so just do the detail about what’s in scope and what isn’t.
Are There Discounts If I Prepay for Services?
Some accountants offer discounts if you prepay for a package of services.
This could be a good option if you’re looking to save money on accountancy services. However, be sure to ask about this upfront so there are no surprises later on.
Price Questions - Final Thoughts
Asking an accountant about their prices is an important part of deciding whether or not to use their services.
Be sure to ask about fixed versus variable fees, what’s included in the monthly service fee, and whether or not there are any discounts available if you prepay for services. By asking these questions, you’ll be able to make an informed decision about which accountant is right for your business.
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Due Diligence Questions
You’ll want to make sure that everything is in order and accounted for—literally.
That’s why it’s important to find an accountant that you can trust to keep track of your finances and advise you on the best financial decisions for your business.
But how do you know if an accountant is right for you? The best way is to perform due diligence.
Due diligence is the process of investigating a potential accountant to ensure that they are qualified and trustworthy.
This process might seem like a lot of work, but it’s worth it to ensure that your business is in good hands.
Who is the Managing Partner Qualified Through? (ACCA, CIMA etc)
It’s important to know which organisation the managing partner of the accounting firm is qualified through. This information can give you insights into their qualifications and experience.
Different qualifications may have a bearing on the services you can receive from the accountant, and also provide an indication about the level of skills and experience they have.
How Long Have You Been Trading?
It’s always good to know how long a company has been in business. This can give you an idea of their stability and whether or not they’re likely to be around for the long haul.
Whilst it’s not the end of the world the accountant is a new business, this needs to be considered in the round. For example, the business might only be a year old, but the managing partner might have 30 years of experience and has recently decided to set up for herself.
What Type of Businesses Do You Usually Work With?
You’ll want to make sure that the accounting firm you choose works with businesses similar to yours in size and scope.
This way, you can be sure that they understand your particular needs and requirements.
This matters more than you might think. Whilst deep industry experience matters a little less than some people think, there should be a good match between the size of business the accountant usually works with. If they usually work with much bigger or much smaller businesses, you’re likely to experience problems with service levels later down the line.
Have You Got Customers That Will Act as Referees for Your Work?
When you’re looking for an accountant, it’s important to get referrals from other businesses who have used their services.
This will give you an idea of the quality of their work and whether or not they’re a good fit for your business.
It should be an immediate red flag if the accountant cannot or will not connect you with other businesses that are using their services.
Why Do Customers Ever Leave You?
It’s also important to ask why customers have left in the past.
This will give you some insight into the accountant’s customer service skills and whether or not they’re able to resolve problems quickly and efficiently.
Things don’t always go right. That’s true for us all, so it’s not the end of the world if the accountant has lost customers here and there, but understanding what the causes are can point to their stance on communication, conflict resolution etc.
How Will We Resolve Problems if They Occur?
No matter how good an accountant is, there may be times when problems arise.
It’s important to have a plan in place for how those problems will be resolved so that you can avoid any potential delays in getting your finances in order.
How Many Clients in My Industry Do You Have?
If the accountant already has experience working with businesses in your industry, that’s a good sign that they’ll be able to understand your specific needs and requirements.
This can save you a lot of time and headaches down the road.
Again, this one isn’t the be all and end all. It’s probably more important for most companies to have a proactive and friendly accountant, over someone less active who’s worked in your industry.
Due Diligence Conclusion:
Doing due diligence on an accountant before giving them your business is important to ensure that they are qualified and trustworthy.
Asking the right questions can help give you a better sense of whether or not an accountant is right for your business.
Now that you know what questions to ask, book a free consultation through us here.
Technology Questions
Technology has transformed the world of accountancy beyond recognition.
These days, having an online bookkeeping package means you have a central source of truth that you and your accountant can base discussions around.
It makes sense to get the most from that.
The chances are you’re always on the lookout for ways to save money and improve your bottom line.
One way to do this is by using technology to your advantage. When it comes to accounting, there are a number of ways that technology can help save you time and money.
But before you can take advantage of these benefits, you need to find an accountant who is up to date on the latest accounting software and who knows how to use it to improve your business performance.
Here’s what to ask:
What Accounting Software Do You Use?
The first question you should ask an accountant is what type of accounting software they use. There are a variety of different accounting software packages on the market, so it’s important to find out if the accountant is familiar with the one that you use.
If they’re not, they may not be able to provide the level of support that you need.
Do You Specialise in a Particular Software Package? Or Can You Support All Cloud Accounting Packages?
The second question is related to the first; however, it’s important to find out if the accountant has experience with more than one type of accounting software.
This is especially important if you’re considering switching to a new accounting package in the near future.
If the accountant only has experience with one type of software, they may not be able to provide the level of support that you need when making the switch.
Equally, if you are deep into xero, or QuickBooks etc, it can be useful to find an expert on that package, rather than a jack of all trades and a master of none of them!
How Will You Use Technology To Improve My Business Performance?
With so much data available at our fingertips, good accountants will know how harness this data and present it in a way which will help clients make informed decisions about their business strategy going forward.
Accountants who don’t make use of available technology may not be able to provide the same level of service as those who do.
You’re looking out for comments here around logging in and basing discussions around what they can see.
Or if they can offer to produce management reports in your software to help you with your planning.
Do You Offer Training on Cloud Accountancy Packages?
It’s important to ask if the accountant offers training on cloud accountancy packages.
This matters because as a small business owner, you may not have a lot of time to spare when it comes to learning a new piece of software.
If the accountant doesn’t offer training, they may not be able to provide the level of support that you need when making the switch from your current accounting package to a new one.
Tip: Negotiating some hands-on training as part of awarding your business can usually be achieved without too much difficulty!
Technology Questions - Analysis
Asking these questions will help ensure that you find an accountant who is up-to-date on the latest accounting software and who knows how best utilise this software for your business needs specifically.
Technology has revolutionised many industries – including accountancy – so it’s important that your accountant is keeping up-to-date with these changes in order best serve your business.
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Questions about Services
A good accountant can save you time and money by keeping your books in order and ensuring that you’re taking advantage of all the deductions and tax breaks available to you.
But how do you know if an accountant is right for your business? It makes sense to check the services they offer and how they provide those services.
What Is the Turnaround Time on Bookkeeping and Tax Preparation Services?
You don’t want to be waiting weeks or even months for your bookkeeping and tax preparation to be done. Ask your potential accountant what their turnaround time is for these services.
This really matters and you should want clear and agreed timescales.
For bookkeeping, having it done promptly means getting your VAT submissions in on time and also having accurate month end figures.
For your annual accounts, there’s nothing worse than having provided everything to your accountant and then they leave it to the last minute before filing things.
Clear answers to this question are important.
What Is Your Experience With Bookkeeping?
If the accountant is going to handle bookkeeping too, It’s important they can do a good job with it.
Bookkeeping can be complicated and is a lot more than reconciling the bank accountant. It can involve forecasting and reporting, so check what they can do and what’s included in the fixed cost.
Questions About Services
Some accountants only provide basic services, such as year end accounts. Others offer a full suite of services including payroll, management accounts, and more.
Be sure to ask about the range of services offered so that you can decide if the accountant is right for your needs.
As a general rule, we recommend working with an accountant that can offer as much added value as possible, such as business advice, cash flow planning etc as you never know when you’ll need these things.
Service Levels
Once you’ve established confidence that the accountant can do a good job and you feel you can get along with them for the long haul, it’s worth doing a bit of detail around the service levels you can expect from them.
We suggest asking these sorts of questions:
How Will I Contact You With Questions After We Sign Up for Your Services?
This is important to know because you will inevitably have questions after you start using an accountant’s services. It’s helpful to know how easy it will be to get in touch with someone who can answer your questions.
How long should you expect to wait for answers, and if contact can be via the phone as well as email are always helpful to know.
We hear lots of complaints from businesses that have found us because their current accountant has terrible communication and response times – so get ahead of it before doing business together.
What Considerations Should I Consult You About My Business?
This question will help you gauge how much experience and knowledge the accountant has. If they’re able to give you specific examples of things you should consult them about, that’s a good sign.
You might also discover some additional ways you can work with each other at this point too.
For example, can they help you raise finance or plan an exit strategy?
Who Chases Who for Paperwork?
This question is important because it will give you an idea of who will be responsible for keeping track of the paperwork associated with your accountancy services. If the answer is “you’ll have to chase us,” that’s not ideal.
You’re paying for a service and you don’t want to have to think about filing deadlines.
How Much Time Will You Give Me To Prepare Paperwork?
This will give you an idea of how responsive the accounting firm is.
If they’re not willing to give you enough time to prepare your paperwork, that could be a problem down the road.
You also want as much time as possible so you know about problems, tax liabilities and issues early. Time is your friend when it comes to financial planning. Choose an accountant that doesn’t deprive you of it.
Who Will Be My Point of Contact? Will It Be One Person, or Will It Be Multiple People?
It’s helpful to have one primary point of contact so that you don’t have to keep track of multiple people.
Continuity of service matters. Sure, there might be plenty of people in the firm you work with that are qualified accountants, or can answer general accountancy questions, but there’s real value in speaking with someone who knows you, your business, backstory and plans as this all helps provide the richest and fullest advice.
Service Levels - Analysis
Asking about an accountant’s service levels is a great way to get an idea of what working with them would be like.
By asking the above questions, you can get a better sense of how responsive they are, what their communication style is like, and how much experience they have.
All of these factors can help you decide if an accountant is right for your business.
Accountants Knowledge Questions
It can be reassuring to know that your accountant knows more than you do about how to optimise your business for tax planning and profitability.
Afterall, one of the reasons to use an accountant is to tap into their financial expertise.
We love it when one of our customers tells us that an accountant we’ve paired them with, has saved them more money in tax than their total annual fees.
So how can you check your dealing with a suitable expert?
Ask Them About Cash Flow
One of the most important things an accountant can help you with is cash flow.
If your business doesn’t have enough cash on hand, it won’t be able to pay its bills or meet its other obligations.
So, when you’re interviewing potential accountants, be sure to ask them about cash flow. Find out how they would advise you to improve your business’s cash flow.
A blank stare back is not what you’re looking for. And specifics matter here, not just general concepts.
Ask Them About Business Structure
Another important thing to ask an accountant about is business structure.
The way your business is structured can have a big impact on your taxes and other financial obligations.
So, find out how the accountant would advise you to structure your business for maximum efficiency.
Ask Them About VAT
If you’re doing business in the UK, then you need to be aware of Value Added Tax (VAT).
This is a type of tax that businesses must charge on certain goods and services.
As a small business owner, it’s important to know how VAT works and how it might affect your business. So, be sure to ask the accountant about VAT before you hire them.
It’s not about whether or not you should be registered for VAT, but also whether or not there are merits in the flat rate VAT scheme based on your business cost profile.
Ask Them About Deductions
You probably know that there are certain deductions that your small businesses can take advantage of.
These deductions can save you money on your taxes and help improve your bottom line.
So, when you’re interviewing potential accountants, be sure to ask them about deductions that might apply to your business.
Make them earn their fee!
Ask Them About Business Growth
A good accountant should be able to offer advice on how to grow your business.
Part of the job is helping businesses succeed financially.
So, find out what advice the accountant has for growing your small business. They should be able to offer insights on everything from marketing to expansion plans.
This is how modern accountancy operates and you should be seeking strong and detailed answers here.
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Questions for Accountants - Final Thoughts
There you have it. If you are thinking of changing accountants, you’re now equipped with all the questions you need to make an informed decision.
We tend to tell our clients that have found an accountant through us that you should feel confident they can do the job, add some value, charge a fair price and you sense a good working relationship is possible.
By using some of the questions in this guide, you’ll be well on your way to finding an accountant you can work for the long run.