The very first thing you should do when you decide to launch your own limited company is to look for a professional accountant to take care of the preparation and filing of year-end accounts, financial statements and tax returns.
Your friends may suggest that you save some money by managing this work on your own when the company is in the initial stages and still finding its feet. However, it will be better if you do not think of cutting costs when it comes to company accounts. Rather, hiring a professional accountant in the very beginning will help your limited company adopt efficient costing and taxing practices and start generating profit early on.
Though it is essential that you hire a professional accountant, finding one who is right for your company is not as easy as it sounds. As is commonly observed in many other professions, the accounting field also has its share of questionable practitioners. You need to be very cautious and search for a professional who possesses the required qualifications, knowledge and integrity.
This brings us to the vital question of how to find the correct accountant. Here are some guidelines that can guide you towards making an informed decision.
- Ask your friends and associates for recommendations. Favorable endorsements of a particular professional/firm can reassure you about his/its capabilities. However, you must not rely blindly on these recommendations or let this be the only criteria for choosing the accountant.
- Try to hire an accountancy firm that has experience of handling businesses like yours. A professional who works regularly for companies that are of similar scale and type is likely to have thorough knowledge of the taxation policies governing such entities.
- Make sure that the firm you hire gives you a dedicated accountant who is always updated about your business, its objectives & policies, and current financial position.
- Hire someone with whom you can forge a professional working relationship. If you are hiring your close friend as your accountant, do consider forming an online company whether you can keep your personal and professional relationships separate.
- The location of the accountancy firm is also important. Local professionals are preferable as you can meet them whenever needed and be sure of timely guidance and services.
Finding the correct accountant for your limited company is very crucial for the sustained growth for your business. Apart from making sure that your company adopts the most beneficial financial practices and makes timely & accurate tax submissions, a skilled professional will also leave you free to focus your energies on the core business activities.