How to choose the right accountant for your business

If you are just starting out in business, choosing the right accountant is essential. They are an important business adviser, who should make you feel at ease and help you understand the financial side of your business so that you can make informed, well-timed decisions.

We look at the key things you should consider before selecting an accountant.

Decide what services you want

To start with have a clear idea of what services you expect them to deliver. You may want them to  simply complete and submit your annual accounts or you may want to use their expertise to write a business plan, advise you on how to maximise your profitability or run your payroll.

Find the perfect fit

Once you know what you want from your accountant, try to have conversations and, preferably meetings, with as many as possible. This will help you find an accountant that suits your needs and who you can work well with. Personal recommendations are invaluable, so talk to your friends and acquaintances who have their own businesses to find out how they feel about their own accountants and whether they can recommend anyone.

Sort out billing

Before you start working with an accountant find out how they will be billing you. Will it be a fixed fee each year so that you have access to advice throughout the year? Or will it be an hourly rate?

An hourly rate can result in unexpected bills for telephone conversations or responding to e-mails. If you are being charged on an hourly rate always ask for a breakdown of how the bill has been calculated. This will give you an indication as to how they are charging you and allows you to query charges if necessary.

Change if you aren’t happy

And remember an accountant isn’t for life – you are under no obligation to stay with them if they don’t “fit” with your personality, your business, or simply don’t provide the services that you expected.

We work with clients from all walks of life, so if you are looking for a jargon-free, proactive, approachable accountant, contact us for more information.

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Breaking even – checking the numbers

In previous newsfeeds we have described how you can calculate the level of turnover you need to create in order to meet all your costs whether they be fixed costs (rent, rates etc.,) or variable costs (goods you need to buy to convert into goods you sell).

For example, if your fixed costs are £50,000 per annum and your variable costs are 25% of your turnover, the annual turnover you need to breakeven will be £200,000. The formula is:

Annual fixed costs divided by 25 (the gross profit)

Bereavement Support Payment

The amount of Bereavement Support Payment you can claim will depend on your relationship to the person who died and when you make your claim.

Your payments will be paid into your bank, building society or credit union account.

If you were married or in a registered civil partnership with the person who died

If you were receiving Child Benefit when your partner died (or did not get it but were entitled to it), you will get the higher rate.

This is made up of:

a first payment of £3,500;

Tax codes for employees

The P9X form is used to notify employers of the tax codes to use for employees. The latest version of the form has been published and shows the tax codes to use from 6 April 2023. The form states that the basic personal allowance for the tax year starting 6 April 2023 will, as expected, be £12,570 (£12,570 in 2022-23) and this means that the tax code for emergency use will remain at 1257L.

The basic rate limit will be £37,700 (£37,700 in 2022-23) except for those defined as Scottish taxpayers

Properties not let at commercial rates

There are special rules where a property is let at less than a commercial rate or isn’t let on commercial terms. These rules also apply if a property is occupied rent free or at less than a commercial rate, for example, a property is occupied by a family member at a reduced or nil rent.

In these circumstances, HMRC can take the view that unless the landlord charges a full market rent for a property and imposes normal market lease conditions, it is unlikely that the expenses of the property are

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