Posted: 12. October 2019 by: Rupert Tennant

Making a Plan With Your Accountant

Making a Plan with your Accountant

sesauer October 12, 2019

The accountant is a key part of the business regardless of its size and what it does. That’s why you need to make a long term plan with your accountant and use it to detail the future of your relationship both in terms of the tasks ahead of you and how you’re going to deal with the financial parts of the job.

These plans will also allow you to know which part of the job needs to be handled by the core business team and which should be delegated to the accountants.

How are the accountants paid?

The first thing to clear out in details and to put in writing in the form of the contract between the two is how the accountant will be paid. There are a few ways to go. Some accountants simply pay by the hour, and that’s usually the case when they are doing the same kind of work all the time.

There are other ways, as well. Some accountants charge a fixed price for a particular project and others ask for the percentage of the income the company makes. This is the case when the accountant also plays a broader role as an advisor.

The scope of the work

Once you know how much the accountant will cost, you should figure out the scope of their work with you. That’s because an accountant could play a variety of different roles within the company, and you should focus on the one that you need the most.

At the same time, you could hire an accountant that will focus on one task only. That’s often the case when you have a steady task such as payroll that you could leave to someone else and focus on something more important.

Emergencies

It’s also important to figure out how your accountant will act in cases of emergency. These could be about making a mistake in your tax return or about tax rules in general. It could also be about being late and paying additional fees. In some cases, it’s also about the audit that HMRC sometimes asks some businesses to go through.

It’s important for the accountant to know how they should respond in these cases and what kind of relationship you want to build with HMRC. It’s also a matter about them leaving enough time for this purpose.

How they work with others

An accountant needs to work with the rest of the financial team in your employment. These relationships need to be clearly defined. That way you’ll know who does what and no boundaries are being blurred. It’s an essential step for avoiding office conflict.

This is especially the case when you bring the accountant from outside the company, and the rest of the financial team works within the company as your core employees. That way, you get to figure out how the teams cooperate and what your employees are responsible for.

The documents

Keeping track of documents needed to run an accounting work is essential. It’s also required by law to do so, and you could get in trouble with HMRC if you don’t have some of the documents prepared on their request and during an audit. This is therefore too important an issue to leave to an accountant alone.

 It’s important to establish the systems on how the documents will be saved and archived. When you got that down, you’ll need to establish how those documents are protected in terms of privacy and who gets to use them and have access to them in general.

References

Once you’ve made it known what you want from an accountant, it’s important to ask for references that prove they could do this job.  That can be done by asking them to provide the references and by talking to their previous employers.  It can sometimes take time, and after that, you may still need a probation period, but it’s necessary to work.

Since accountants do so much different work at once, you may need to ask for references in different places. At the same time, you could combine all this work into one job and that way you get to learn about their abilities from a number of previous employers.

Conclusion

An accountant is a broad title, and they could do a lot of work for a company or just focus on one particular task. These details need to be worked out between the accountant and the company in advance, and that will make future work that much easier.

The arrangement should cover what exactly does an accountant do, how much they make and on what grounds as well how to handle HMRC and sensitive company documents. It’s also useful to make sure that the accountant has done similar work before.