Choose your accountants wisely

Concise tips in choosing accountants wisely to work with you on your business.

Accountants’ pricing

It is important to obtain couple of quotes from different accounting firms to compare the prices so that you are aware of the market rate and avoid being overcharged. Usually, accountants firm charge their clients by the hour. They will provide you with a quote based on the nature of your business assignment.

Ask the accountants:

  • How many people would be involved in your company’s affairs?
  • How they work out their charging rate?
  • How often they will issue invoice to you? monthly or as and when they complete your assignment.
  • Do they give credit terms, say 30 days from invoice date?
  • Would they communicate with you if they foresee the work involved is going to exceed the original quote given? You do not want to be quoted a fee of £1200 then being given a final invoice of £2000 to pay.

Some accountants firm offer fixed fee accounts packages to limited company. If you are just starting up your business it is best to go for fixed fee accounting package as you know exactly how to pay your accountants.

Accountant’s response time

Ask the accountants what is their response time within the firm? for example, they would reply to clients in 24 hours is their practice norm.

Would they be anyone else that you could contact if you could not get hold of the person in charge of your assignments?

Accountants’ specialist areas in business

Find out the accountants’ core competency. For example, if you have question involving international tax affairs, would they be able to handle or how would they able to assist you to get the result?

The size of the accountants’ firm

Ideally small to medium sized accountants are suitable for small to medium sized businesses.

Large companies are best to go for the big accountancy firms like PWC, KPMG, Deloitte and Ernst & Young and many more.

Attitude of Accountant in charge of your company affairs

It is very important that you have a rapport with the accountant that you would be regularly dealing with. Whether you feel comfortable with the person or with the way he/she handles your assignment.

Let take an example, if you are an impulsive person and you like to get things done fast, you would not be compatible to work with an accountant that has an attitude of managing its clients affairs on strictly first in first out basis.

If you are a positive thinking person, you may find it frustrating to work with an overly prudent accountant who come across almost negatives.

We believe in when there is a will, there will be a way in achieving whatever we want in business and in life. In other words, we can make the impossible possible. Choose like with like is the way to forward.

Convert business assets into cash

Convert business assets into cash is basically done by reviewing your fixed assets register to find which business asset can turn into cash.

Fixed Assets Register

Fixed assets register is a summary of all assets owned by your company. It should contain information such as the asset description, date of purchase, value of the assets and economic useful life of each asset.

To begin with, review your company’s fixed assets register regularly to identify surplus or idle assets. At the same time, you can also evaluate the condition of your physical asset and update its value to market value.

Convert business assets into cash

There are many ways you can turn your assets into cash.

  • Sell the surplus assets. This includes land and buildings, plant and machinery, motor vehicles that you no longer need.
  • Consider sell asset where you can subcontract the production. For example, subcontracting out your printing process, your in-house printers would become surplus. Do this only if it is more cost effective and efficient for your business going forward.
  • Sale and lease back to get extra cash for the equipment you already owned.
  • Hire out underutilized of plant and machinery capacity.
  • Sub let vacant factory and rent out vacant office space.
  • Disposed of separable and sale-able investments such as shares, subsidiaries or any parts of the business like a branch if they no longer serve your core business.
  • Sell idle equipment lying around in the factory or unused office furniture. The chances of the idle business assets being re-used is very small. Especially if they are stored in the warehouse or a storage room. This is because people often forgot about them.

Cash is king. It is the life blood of your business.

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