21 Questions to Ask an Accountant

When hiring a professional accountant, there are a few questions a small business owner should ask them to make sure they are the right fit for your business. Some of these questions will not be relevant to your business, so choose the best ones.

The first thing to check out their website and see what services they offer. This can help you to determine if they have the experience you need. Their website may already include the answers to many of these questions.

For small business owners choosing the right accountant can be a lifesaver. They can offer advice, complete the company accounts and point you in the right direction for preparing accounting statements, including the balance sheet, profit and loss, company returns and tax filing.

Below is a list of questions to ask an accountant to get you started

What Accounting Software do you use?

The accounting software an accountant uses is important because it can give you an idea of the level of experience. If they use several different accounting software packages, they will know which software fits your business.

They may also be able to offer a discount on the software with the services they provide. Some of the most popular packages include FreshBooks and QuickBooks.

Can you Provide References from Past Clients?

If you’re thinking about hiring an accountant, one of the best ways to get a sense of their work is to ask for client references. A good accountant should be able to provide you with a few references from past clients who are happy with the work they did. When you contact these references, be sure to ask about the specific services that the accountant provided and their overall experience working with the accountant.

This will give you a better idea of what to expect if you hire them. Remember that every client is different, and even the best accountant won’t be a perfect fit for everyone. But if you can find an accountant who comes highly recommended by past clients, chances are they’ll be a good fit for your business.

What is your Experience in Preparing Tax Returns?

When you choose an accountant, it is important to make sure that they can complete the types of tax returns you need. For example, if you are a self-employed sole trader, you must complete a self-assessment tax return. If you are registered for VAT, you must complete a VAT return. And if you are a company, you will need to complete a corporation tax return.

MTD is also something that you should discuss with your accountant. This is Making Tax Digital, and it is a new initiative from HMRC that requires businesses to submit their tax returns digitally. If your accountant is not familiar with MTD, they may not be able to help you comply with this new requirement.

It is also worth asking if there are any specific tax laws that your business should know. There are some industry-specific tax regulations that your small business may need to be aware of. For example, if you are in the construction industry, there are specific rules about accounting for your income and expenses.

An accountant who is familiar with the tax laws that apply to your business will be able to help you stay compliant and avoid penalties.

How Much Do You Charge?

It’s always a good idea to ask an accountant about the fees they charge before hiring them. This way, you can be sure that you’re getting a fair price. Ask specifically about hourly rates, flat fees, and any other applicable charges.

It’s also a good idea to find out how the accountant prefers to be paid – this will help you budget for their services. Most importantly, don’t be afraid to negotiate! After all, it’s your money, and you should feel comfortable with the arrangements.

If an accountant is unwilling to negotiate on price and they are expensive, it may be best to look elsewhere.

What is your Availability?

It’s good to ask an accountant about their availability before hiring them, especially if you need help during busy times like tax season. Many accountants are only available during normal business hours, Monday through Friday. But some also offer evening and weekend hours to accommodate their clients’ schedules.

If you have a complicated financial situation, you may need to work with an accountant who has more experience and is available for longer consultations. It would also help to ask about the accountant’s policy for returning phone calls and emails.

You don’t want to hire someone who won’t be able to respond to your questions promptly. By asking these questions upfront, you can be sure that you’re hiring an accountant who is available when you need them.

Do you have Liability Insurance?

When meeting with an accountant, be sure to ask about insurance. Accountants need professional liability insurance to protect themselves from lawsuits alleging that they failed to meet professional standards.

If an accountant does not have insurance, they may be personally liable for any damages that result from their negligence. Asking about insurance is a good way to protect yourself from potential financial damages.

Do you offer a Free Consultation?

One of the first questions to ask an accountant before a meeting is that they offer a free consultation. This will allow you to meet with the accountant, ask them some questions, and see if they are a good fit for your business. Most offer a free consultation, but it’s always a good idea to ask. This way, you won’t be out any money if you decide that the accountant isn’t a good fit.

What is your Cancellation Policy?

A cancellation policy is one of the most important factors to consider before hiring an accountant. After all, you don’t want to be stuck with an accountant who isn’t a good fit for your own business needs. There are a few things to consider when evaluating an accountant’s cancellation policy.

First, find out how much notice the accountant requires before cancellation. Some may require a month, while others may be more flexible. Second, ask about any cancellation fees. Some charge a cancellation fee, so be sure to determine how much it would be before hiring them. Finally, ask about the refund policy. Some offer a full refund if you cancel within a certain timeframe, so be sure to ask about this before hiring an accountant.

What is the Payment Policy for the Accounting Firm?

Some will charge by the hour, while others may charge a flat fee. Be sure to ask about any additional fees, such as travel or expenses. You will also want to know how often the accountant expects to be paid. Once you have a clear understanding of the payment policy, you can decide whether or not the accountant is a good fit for your business.

Do you offer any Discounts?

An accountant can encourage clients to promptly pay their invoices by offering an early payment discount. This type of discount typically ranges from 2-5%, and it is typically offered for payments made within ten days of the invoice date. Offering this type of discount can improve their cash flow and reduce the amount of time spent chasing unpaid invoices.

How Long have you been Practising Accounting?

When you ask an accountant how long they have been practising, you will likely get a range of responses. Some may have only recently qualified, while others may have been in the profession for many years. However, all accountants should be able to provide you with a high level of service. Qualified accountants must complete regular training to keep up to date with changes in the law and best practices.

In addition, many are members of professional bodies such as the Institute of Chartered Accountants, which sets standards for the profession. As a result, you can be reassured that an accountant with any level of experience will be able to provide you with a high standard of service.

What is your Education and Training in Accounting?

Qualifications are important when choosing an accountant. The main UK qualification is ACA (Associate Chartered Accountant), a highly regarded qualification that takes three years to complete. Other qualifications include CIMA (Chartered Institute of Management Accountants), AAT (Association of Accounting Technicians) and ACCA (Association of Certified Chartered Accountants). When choosing an accountant, it is also important to consider their training and experience. 

CPD stands for continuing professional development and is important for anyone working professionally. It helps ensure that professionals keep up to date with changes in their field and new tax laws and maintain their skills. They need to be able to demonstrate their CPD to maintain their qualifications. CPD can take many forms, such as attending training courses, reading professional journals, or attending seminars.

If you’re thinking of hiring an accountant, it’s important to ask about their CPD and how they keep up to date with changes in the profession. This will help to ensure that you’re getting someone who is qualified and capable of meeting your needs.

What are Some of the Types of Businesses do you have Experience in?

Accountants generally have experience working with businesses of all types and sizes. The most common business structures that they work with are sole proprietorships, partnerships, limited companies, and trusts.

Small business owners in all industries can benefit from the experience and knowledge of an accountant. For example, a retail business owner may need help with inventory management, while a business owner in the food industry may need assistance with food cost analysis. No matter what business structure or size of business you have, an accountant can provide valuable insights and advice.

How do you Communicate with Clients?

You should ask your accountant how they communicate with clients and how they expect to get paperwork like bank statements and invoices. They may have a system for doing this electronically or prefer to receive paper copies. In either case, be sure to ask about any preferred format or turnaround time for documentation to provide what is needed on time.

Your accountant will be able to advise you on the best way to keep track of business expenses and income and give you guidance on what kind of documentation is needed for specific tax-related purposes. By asking these questions up front, you can help ensure a smooth and efficient relationship with your accountant.

Ask your Accountant if a Single Person will handle my Account

As a small business owner, it’s important to ask your accountant if one person in the firm will handle the business or if you’ll be dealing with several different people. This is important because you need to know who you can trust with your financial information.

If you’re dealing with multiple people, make sure to get to know each one and how they handle your finances. Find out if they have any specialities or expertise that can help your small business. You should also ask about their fees and how they bill for their services. By asking these questions, you can be sure that you’re getting the best possible service for your small business.

How can you help Improve our Company’s Bottom Line?

Any business, large or small, needs to keep a close eye on its bottom line. This means working with an accountant to track income and expenses, balance the books, and prepare financial documents for many small businesses.

However, there is more than an accountant can do to improve a business’s bottom line. By looking at the big picture, they can identify areas where the business is overspending or could be more efficient. They can also offer advice on financial planning and risk management. In short, an accountant can be a valuable ally in helping a business achieve its financial goals.

Ask your Accountant if they can Help Grow the Business?

Many business owners don’t realize the value of working with an accountant until they’re in the middle of a financial crisis. However, an accountant can do more than keep your business finances in order – they can also help you make smart business decisions that will help you grow your business. From choosing the right business structure to setting up financial systems, an accountant can offer valuable guidance to help your small business succeed.

An accountant can save you both time and money by ensuring that you’re taking advantage of all the deductions and credits you’re eligible for when it comes to tax time. If you’re serious about growing your business, ask an accountant if they can help. Chances are, they’ll say yes.

Do you Run Payroll?

Every business has to deal with taxes, and one of the most important aspects of tax management is payroll. Payroll tax liabilities can be tricky to calculate, and if you make a mistake, it can cost you dearly come tax time. As a result, many businesses outsource their payroll tax responsibilities to an accountant or tax specialist.

It allows them to focus on running their business, safe knowing that their tax bill will be accurate and paid on time. Of course, there are also several software packages available that can help with payroll tax calculation. Whichever route you choose, make sure you ask an expert before making any decisions – after all, nobody likes paying more tax than they have to!

Ask your Accountant if they Outsource any Work?

An accountant may outsource work to other bookkeepers or accountancy firms. This can save the company money on accounting services. It is important to ask your accountant if they outsource any work to other bookkeepers or accountants. If they outsource work to bookkeepers, you may want to find your own that you can work with.

What Business Expenses Can I Deduct?

Many small business owners are looking for ways to save money on their taxes, and one way to do that is to deductions for business expenses. But what exactly can be considered a business expense? The answer may surprise you. First of all, any necessary and ordinary expenses related to running your business are deductible. This includes office supplies, website hosting fees, and travel expenses.

You can also deduct home office expenses if you use part of your home for business purposes. In addition, you can deduct charitable contributions made by your business. So, if you’ve been wondering what business expenses you can deduct, the answer is quite a lot! Be sure to talk to your accountant to get the full details on what you can and cannot deduct.

Can you help with Cash Flow Statements?

Anyone who has ever managed a business knows that cash flow is essential to keeping the operation running smoothly. Cash flow statements track the inflow and outflow of cash, providing valuable insights into a company’s financial health. However, preparing cash flow statements can be challenging, particularly for small businesses with limited resources.

An accountant can help to ensure that cash flow statements are accurate and provide useful information for decision-making. In addition, an accountant can offer advice on improving cash flow and saving money. As a result, working with an accountant can be an invaluable tool for managing cash flow and ensuring the financial stability of a business.

Conclusions on Questions to ask an Accountant

Small businesses need accountants to help with various tasks, from preparing financial statements to taking care of payroll taxes. When hiring an experienced accountant, it’s important to ask your accountant the right questions so you can be sure you’re making the best decision and help grow your business

Some key questions to ask include whether the accountant outsources any work, what expenses can be deducted, and whether they can help with payroll. By asking the right questions, small business owners can find an accountant to help them grow their business and save money on taxes.