It goes without saying that choosing the right accountant is important for you and your business. They can either make your business work better for you, or, in some cases, can make things more difficult, and nobody wants that!

Whilst most accountants are professional, we have heard MANY horror stories about people who have suddenly found themselves being asked to pay extortionate late fees because their accountant wasn’t keeping on top of things, or one’s that have been uncontactable for weeks at a time.

We share some ‘red flags’ to be aware of when making your decision.

The promise of 90% take home pay.

No matter what anyone tells you, as a legitimate limited company there is no way around it, you must pay tax! If you work in the UK, you must pay UK taxes. The maximum take home pay ranges between 75-80% depending on your contract rate. So if you are being offered higher take home by using some form of an offshore account, a loan, or claiming on company expenses that have not been used, these aren’t legitimate and should be avoided. HMRC will catch up to you. As the old saying goes, if it sounds too good to be true. . . it probably is!

For a truer reflection of your potential take-home pay, speak to one of our expert accountants for a tailored answer. You can also visit our Take Home Pay Calculator page for an initial estimate.

The word ‘team’ can be misleading!

There is a big difference between an accounting team and a sales team – or as we have heard over the years, an account advisor, contractor consultant, support team, tax teams, paye teams etc.

If you’re dealing with a sales team chances are you’ll be passed from person to person when trying to get a query answered or chasing up on paperwork. A dedicated accountant will be with you from the beginning, without you having to repeat yourself again and again, and will get to know you and your business. Whether or not the query requires further investigating, you will still only have to speak to that one person without fail.

If you accountant also refuses to meet face to face (or online as is the case now) ask yourself why? Why can they not meet to provide face to face support and reassurance? We offer face to face meetings, Zoom or Microsoft Team calls at your convenience for both clients and prospects: Book A Meeting.

Be careful when being charged by the hour.

If you’re being charged by the hour, before you know it you could be facing an extremely big bill! Equally frustrating, it may put you off asking the questions you really need answers to. A fixed fee accountancy package ensures you never get hit with hidden charges just because your accountant is taking their time on the subject. Let’s face it, when we’re paying someone to do a job we want it done thoroughly, not hastily to make it cheaper.

Check what qualifications and knowledge they have of the self employed market.

When seeking an accountant, remember that many excellent professionals are qualified by experience. They’ve dedicated years to hands-on practice, gaining a deep understanding of the market and client needs. It’s crucial to feel confident that your chosen accountant truly grasps your specific requirements. Look for terms like ‘specialists,’ as these individuals often have extensive training in their field. Additionally, credentials like ACCA and AAT signify regulated accountancy qualifications. While formal qualifications aren’t always a prerequisite to being an accountant, these certifications offer strong reassurance that they’ve mastered their niche and that you’re in capable hands.

Check if they have a client promise or service guarantee.

You don’t want to incur late fees if your accountant is responsible for not filing your paperwork on time. You need to be confident that your accountant will back up what they say which means they need to offer you protection regarding how long you should wait to hear back from them and if they are responsible for late fees that they will cover those for you.

Avoid giving complete answers or providing detail.

If you start to feel like there are gaps in the information being given by your accountant, or they refuse to give you information that you have asked for, that should be a red flag! Your accountant is there to guide you and provide you with any information and knowledge that you need to make the right decisions for your business. The right accountant will understand not only the wants and needs for a contractor, but what is happening in the market and how it may or may not impact you.

A true accountant will give honest advice, whether it is good or bad their intention should always be what’s best for your business, even if you don’t like the answer!

They refuse to talk to your old accountant.

If you’re in the position where your previous accounts require further investigation, it shouldn’t be a problem for your accountant to speak to your previous accountant. If they are unwilling to speak to them it is very unprofessional, so don’t accept that that is the norm.

Poor misconduct.

Businesses should be professional – and that includes accountants. If yours shares other client’s details or speaks poorly of other accountancy firms, that should also be a red flag. Accountants are there to provide fair and impartial advice and if yours is talking about other clients, they could be talking about you too. A lot of it is personal, can always choose another.

In conclusion, while it might sound like it’s in your best interest, an accountant shouldn’t condone bad practice as chances are, you’ll pay for it in the long run. Go with the above advice regarding what to look out for, and your gut instinct. Your accountant is there to help you and your business, always bear that in mind.

Whether you are new to contracting or ready to switch over from your existing accountant we are here to help. Our company was founded on integrity and providing a fully honest and transparent service. For further details on our services, why not speak to one of our fully qualified accountants on 0207 096 2659 or visit our accountancy packages page for more information.