How to choose an accountant for your tech startup
There's always a lot to consider when choosing an accountant, no matter what stage of business you're in. A new business may be on a tight budget, or you may wish to switch accountants. A good accountant can help you save time and money, as well as provide you with a better understanding of your numbers from day one, regardless of where you are in your business.
At Zyla Accountants, we combine our expertise, experience and skills to help growing tech startups and businesses achieve growth faster with our intuitive growth strategies, software and smart tools. With the right accountant supporting you, you are capable of much more than you think!
What an accountant can do for you
Did you expect that you'd spend hours doing your bookkeeping when you began your business? The answer is probably no (unless you're a bookkeeper). It was started because you had a talent, or you were passionate about something. Bookkeeping, tax returns, annual accounts, and cashflow forecasts, among other aspects of running a business, are best left to experts who do it every day.
In spite of your ability to do all of these things very well, you must ask yourself, where should I spend my time? Business owners often forget to look at the bigger picture and steer their business in the right direction when they are caught up in the day-to-day running of the business.
Accounting professionals can help with both compliance work like annual accounts and tax returns, as well as strategic planning and financial advice.
The days of the once-a-year accountant who files your accounts and taxes are numbered. Accounting firms now have the ability to provide more value to business owners.
Why should you hire an accountant?
How do we begin? It is a good idea to begin by identifying exactly what you need from your accountant. A self-employed person may only need help with their personal tax return. It depends on what industry you are in and how many transactions you have whether you need an accountant.
Self-employed individuals with a lot of transactions may need an accountant to handle their bookkeeping.
For basic tax returns and bookkeeping, a small accountancy firm might be sufficient if you're a freelancer or sole trader.
Additionally, larger businesses may require a company that can handle complex accounting, payroll, and VAT on their behalf.
Consider hiring an accountant with a specific expertise as well. It's worth looking for someone who understands the ins and outs of your industry if you're in property, tech, or retail.
Ensure that they are knowledgeable
Professional bodies ensure high standards in the accountancy field, as they do in most other professional service industries. A few examples are the Association of Chartered Certified Accountants (ACCA), the Institute of Chartered Accountants in England and Wales (ICAEW), and the Chartered Institute of Management Accountants (CIMA).
Your accountant's qualifications and membership in a professional body reassure you that they're properly qualified and regulated.
What services do they provide?
Choosing an accountant will depend on how large your company is or how much you can afford to spend.
Businesses have different needs. Accounting is based on the following basic principles:
Tax returns
Bookkeeping
VAT returns
Payroll services
In some cases, that is enough for business owners. For those who aren't concerned about spending a lot, and are satisfied with the compliance work, this will suffice. Advisory services such as tax planning, financial forecasting, management accounts, and business planning would be more appropriate if you want an accountant to go further.
Business plans, cashflow forecasts, and management accounts are among the advisory services accountants offer to other businesses.
It's here that your accountant takes a look at everything, including your debtor database, cash flow, pricing, and even marketing strategy. Assisting you in making informed decisions about your business's finances.
As a result of cloud technology, business owners can keep track of their numbers in real-time, which allows them to make better decisions and grasp their numbers better.
What reviews does the accountant have?
Take your time and do your research! Your accountant may not be the right choice if they have a one-star rating on Google.
See if the firm has a Google Business page or a Trustpilot page, and then make an informed choice. Within a few minutes, you'll learn more about the business and what other business owners have experienced.
You may have heard about the business from a friend or by participating in a networking group.
A friend or family member will typically refer you to an experienced accountant, so there's no need to be sarcastic about it.
In the end, the decision is up to you. Consider all the factors above, speak with the accountants, and make your decision based on a gut feeling.
Make your decision based on your needs
The most important thing is that you hire an accountant whose work you feel comfortable with. Your financial information will likely be shared with this individual, so you'll want to know that they're working for you, not against you.
Choosing an accountant who will help your business grow or keep your personal finances healthy over time is also important - you want someone who you can establish a long-term relationship with. A good company will understand your needs and be easy to work with.
Finding someone who can help you with your finances depends on being clear about your needs, checking credentials, and considering factors like pricing, communication, and reputation.
This isn't just about filing your tax returns - a good accountant should also be a trusted partner on your journey.
Make sure you choose someone who is the right fit for you, so take your time and research. Let our team at Zyla Accountants know if we can help your business.