By Roger Taylor

Need an accountant? Take some time to read our questions when choosing one.

An accountant can save you a lot of money which you might otherwise pay needlessly to the taxman. But, more than that, a good accountant can oblige you, for your own good, to face up to issues which you might otherwise be tempted to ignore. That’s another good reason to find one you like.

Interview several. You can start by asking family members, friends or colleagues if they know somebody good. You will also find lots of ads on the Internet, in Yellow Pages or in your local paper but a personal recommendation is usually better.

It’s vital that your accountant understands your short, medium and long-term objectives, so outline any ideas you have for the future. For example if you are planning to buy a property abroad or move there permanently, thinking of down-sizing, or setting up a new business or consultancy, say so. By looking ahead and planning for possible eventualities, your accountant may be able to save you a lot of money. He/she may also have good advice to offer at an early stage based on the experiences of others.

* What are your professional qualifications?

Amazingly, anyone can call themselves an accountant and set up a practice – it’s not like becoming a doctor. Only consider someone with a recognised professional qualification, for example a member of the Institute of Chartered Accountants in England & Wales, the Institute of Chartered Accountants of Scotland, the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants or a Chartered Tax Adviser. This gives you some protection or at least an avenue of complaint if needed.

* Can you give me the names of a couple of clients I can contact to ask about you?

Ask if you can speak to someone whose position is similar to your own. You will want to know things like how reliable, prompt and responsive your potential accountant has been; whether he/she explains things clearly; seems value for money and has produced any good ideas. However do bear in mind that you are only likely to get the names of friendly clients!

* Will it be you who looks after me or someone else?

Make sure you meet the partner who will actually deal with you on a day-to-day basis and not just a senior figure you will rarely if ever see again once you have been secured as a client. If more than one partner will be involved with you, ask to meet the others.

* Can I visit your office?

This should help you judge the quality, nature and scope of an accountant’s practice. Beware someone working from serviced offices or whose offices are very run-down. On the other hand, you might enquire closely about the fees of someone with conspicuously lavish premises.

* How long have you been in business?

Unless your affairs are extremely simple, you need someone with experience. Don’t just take their word for it, by the way, ask for evidence.

* How many partners are there in your practice? And other employees?

If you employ a one-man band, there can be problems when illness strikes or a holiday is taken at a time when you need help. There can also be problems at the busiest times of the year, like January, when many tax returns have to be submitted. Check if there are other people around to help. Solo operators may also lack easy access to expertise in specialist areas like Capital Gains Tax, VAT and Inheritance Tax planning, if that’s what you need.

* Can I see a portfolio of your work for clients?

* An accountant cannot give you detailed information on other clients for reasons of confidentiality. But it’s not difficult to prepare some case studies with confidential details omitted. You are looking for someone who is accustomed to dealing with people like you and so has a good understanding of your kind of lifestyle. The more unusual it is, the more important this point becomes. There is a big difference, for instance, between someone who has a steady regular income and someone whose income is very irregular and fluctuating (like an actor); someone whose income comes wholly from the UK and someone whose income comes mainly from abroad; and someone who is working and someone who is retired and living off their investments. Finding an accountant who has worked with clients in a similar position will save you a lot of explanation and should stop your accountant having to learn at your expense.

* Do you have specialist knowledge of areas which are important to me, or do you have specialists in-house?

If you have complex problems, make sure there is someone in the practice who specialises in dealing with them. They might include succession planning in a family business, trust tax issues or domicile questions.

* What is your fee structure?

Accountancy involves two main types of work. The first is routine ‘compliance’ work like filing a tax return which can usually be done by somebody quite junior. The second is giving more sophisticated advice which can only come from an experienced partner. If you want the latter, you should not have to pay him/her high rates for merely filing a simple tax return for you, which someone junior could do. So check that the work is handled cost-effectively from your point of view.

You want costs to be as controlled and as predictable as possible – no-one wants a nasty surprise when their accountant’s bill arrives. So try to agree a fixed fee for doing routine work. Then find out the hourly rate for consultancy – and get an estimate of the likely hours that will be needed and regular up-dates on whether you are on target.

Beware someone who charges the full hourly rate as the minimum for any task, like just looking up a figure in a file or giving you a quick answer down a phone. Discuss how your accountant proposes to charge for little bits of work which only takes a few minutes.

* How far does your advice extend when it comes to investment?

By law, an accountant can usually only give a limited amount of investment advice unless he/she is registered with the Financial Services Authority as an Independent Financial Adviser (IFA). But if you don’t have an adviser, your accountant may be able to introduce you to one. Some practices have one or more full-time IFAs in-house, others may have a working arrangement with an IFA outside the practice.

* How accessible are you?

Ask how long your potential accountant normally expects to take before responding to you. If you sometimes need help urgently, having your accountant available on a mobile or via email can be essential. Check this is available – but find out how you will be charged for just a short conversation or reading an email.

* How pro-active are you?

Ask for some examples of how your prospective accountant has made pro-active suggestions to clients, beyond the routine requirements or what was asked for.

* I am thinking of starting a business, can you help me?

A good accountant can be like a business adviser, analysing problems and offering solutions, helping with practical advice on financial management, cashflow forecasting, borrowing, risk management, leasing or buying decisions etc.

Originally posted 2008-06-19 15:54:19.