What type of accountant would best suit my small business?

Choosing an accountant for your small business can often be a very overwhelming task. Years ago, accountants were mostly the same, all offered the same services, for similar fees, and as a result you’d be likely to stay with them for as long as they were needed.

This article has been written to help small business owners understand the positives and negatives of different types of accountants and is a broad generalisation. The best thing to do when trying to find an accountant to work with is to consider the non-negotiables for you and your business, and make sure those are covered. Then make sure the important things are also covered. Finally the ‘I’d like to have’ but not necessarily critical can be considered last. We’ve written an article about questions to ask your accountant which might also help you in your decision-making journey. We usually recommend speaking to at least 3 accounting firms before making a decision to help figure out what you are looking for if you aren’t sure – this can help you understand what services some may offer that others don’t, and also work out a fee structure that works for you.

Nowadays, most accounting firms that you speak to will either fall into 1 of 3 categories, or be a hybrid.

1. The Traditional
2. The Online
3. The Outsourced FD

Each type has its place in the small business world, and it is up to you to decide what is important to you, and what services you need.

The Traditional

Taking a traditional approach to accountancy services, they will often have an office – possibly on the high street. They are likely to do the services you ask, give you a quote, and then send an invoice after you’ve done the work.

Positives:

• Often fairly accessible by phone or in-person
• Pricing flexibility
• Can usually provide all services needed by a small business
• More likely to do things in-person or on the phone rather than online
• Usually deal with the same people in the firm

Negatives:

• Less likely to spread payments over monthly instalments, usually billing in arrears, along with your tax bill
• Might not be as tech-savvy
• Likely to expect bookkeeping to be perfect before they do the work
• Less likely to do things online

The Online

Positives:

• Usually the cheaper option, and more likely to offer a monthly subscription
• Usually a fast turnaround
• Will often include software in the fees
• More likely to do things online – online support

Negatives:

• Unlikely to do anything in-person, and may also only do email or app support
• Less likely to deal with the same person
• Often a less-personalised service
• Less likely to offer higher-level services

The Outsourced FD

Positives:

• Someone dedicated to helping both you as the business owner, and the business
• Will offer a full service from bookkeeping to accounts to reporting and KPIs
• Will be on-hand to answer questions
• More likely to offer regular face-to-face meetings (either online or in-person)
• More likely to deal with the same person on a regular basis

Negatives:

• Can sometimes offer services that aren’t needed
• Fees can be higher due to high-level services, more work, and more 1:1 time (often with a dedicated contact)
• Unlikely to want to work on basic services only, and be more specific about the industries/size of business they work with

As a reminder, the above are broad generalisations. Gone are the days when you walked into an accountancy business and walked out with a signed contract. No two accountants are the same, and relationships are becoming a more important factor in the decision-making process.

Things to consider when choosing your accountant:

1. Location – does being local to you matter? Or are you happy to do things online/Zoom/email?
2. Fees – what fees do they charge, and what billing structure do they use (monthly? Subscription? Annually? In advance? In arrears?)
3. Services – what services do they offer? What are their mandatory services, and what are the optional add-ons?
4. Reputation – have you seen positive reviews or recommendations? Are they well-known in your industry?
5. Experience – do they have experience in your industry, or with your business type?
6. Qualifications and regulatory body – are they qualified? Who are they regulated by? (you can look up any regulated accountant on their regulatory body website)
7. Software – what software do they use? Will they use the one you want to? Can they help advise on systems for your business?
8. Support – what support do they offer, and how much do they charge for it?
9. Finally – do you like them?! Relationship is the most critical deciding factor. If you don’t like what they say in your initial meeting, move on.

Where Do We Fit?

At Seed Accounting Solutions, we fit somewhere in between the Online and the Outsourced FD. Our business is run entirely online, but we use Zoom and Google Meet regularly so we get to see eye-to-eye! We don’t expect anyone to print anything off or sign anything with a pen. As a small team, you are always dealing with the same people who know your business inside and out. We offer both email and phone support. Our ideal clients are ‘micro’ businesses (the smaller end of the Small Business sector – did you know that a business is considered small until it reaches £10m turnover?) who want more than just a tax return and accounts filing, but are looking for support and education to help them achieve their goals. We can offer higher-level services but most of our clients don’t need them. When we require specialist tax services, we partner with specialists.

If you’d like us to be one of the three accountancy firms you speak to, book in a Discovery Call here and we can go through your requirements and, if suitable, we can generate a proposal at the end of the session. (And as a reminder, you are more than welcome to use our ‘9 Questions to Ask An Accountant‘ article when you book in!)