While there are lots of different reasons you might become a contractor, there’s one challenge all contractors go through, and that’s managing their finances. A contractor accountant takes the strain and the worry out of the process – but how do you decide which one’s going to be right for you?
We have a few things we’d recommend you check.
Is Your Accountant Regulated?
If you don’t trust your accountant, you may as well not have one; you’d need to do it all yourself to feel comfortable anyway. One of the best ways to test whether an accountant is trustworthy to begin with is to see if they’re regulated.
As a minimum, your accountant should be regulated by CIMA, the Chartered Institute of Management Accountants. Here at ICS Accounting, we’re not only CIMA regulated, but we’re also an IPSE Accredited Accountant, an Associate Member of FSCA, and an approved employer of the ACCA.
It’s also important to remember that if your accountant is unregulated, any errors in your accounting will be seen as your responsibility by HMRC, even though someone else handled them.
Use a Specialist Contractor Accountant
Accountancy is a huge subject, and the days when any one accountant could keep track of everything across the industry are long gone. By using a specialist contractor accountant, you can be confident they understand all the relevant tax legislation (including IR35 where applicable), and that they’ll know to consider any other factor important to contractors.
Find Out About Any Extra Fees
When you know what’s included in your fee, you also know if you might be charged for more than you expected. Some accountants offer tiered levels of service, while others might make insurance or an annual tax return a separate charge.
When signing up, make sure you know what’s included. You might also ask the accountant if there are any additional services most contractors want and how much they cost – that way you can plan accordingly.
Choose an Accountant That Offers More
Most contractor accountants will go beyond a standard accountancy service. They might offer an umbrella solution, support in making a limited company, a PEO, or more. Whether you intend to take them up or not, it can be useful to have the option, and it certainly makes it easier to be able to handle everything in the same place.
Choose an Accountant Who’s Easy to Contact
Whether you prefer face-to-face meetings, phone calls, emails, or online chat, you’re likely to want to discuss your situation with your accountant regularly. Making sure they’re happy to respond quickly – and in the ways you find most useful – can be a huge benefit.
Choose an Accountant Who Makes it Easy to Switch Away From Them
This one may seem counter-intuitive, at least until you have the chance to really think it through. But one way that some accountancy firms keep their clients is by making it difficult to change. Accountants who support you in taking your business elsewhere have to compete based on the quality and reliability of their work.
We always make sure it’s simple and free to switch accountants, and will happily ensure your books are up to date for the previous year.
ICS Accounting has been helping contractors with their accountancy, tax, and administration since 2002. Our contractor accountancy team have all the qualifications, experience, and training you could ask for. Contact us and we’ll be happy to help.
