How to find a great accountant for your trade business

A great accountant works alongside you to help your trade business grow and become more profitable.

Why a trade business needs a great accountant

An accountant can:

• Free up more time for you by handling basic functions, such as bookkeeping and tax returns
• Support you with financial reporting, payroll, tax efficiency, business planning and strategies to grow
• Reduce risk to you by ensuring your business taxes are correctly and accurately filed
• Improve your tax efficiency,
• Improve your cash flow
• Help you obtain funding (like bank loans) to support your expansion plans

They’re experts at preparing a profit and loss account for trade business. They can also create a balance sheet for you.

And let’s not forget the all-important cash flow statements. These show what money is coming in and out of your business.

Plus, they give you the reassurance that you’re legally covering all bases when it comes to managing your finances.

Where you can find an accountant

Ideally, you want to choose an accountant who has experience in the size and sector of the business you’re operating in.

They should have specific experience to help you continue to grow.

Here are some of the ways you can find an accountant:

• If you’re part of your local business community, ask for recommendations for accountants who work with companies in your area
• If you use other professionals, like a financial adviser or solicitor, ask them for recommendations
• Ask friends or family members who own a small business or are self-employed
• Use your LinkedIn profile to look for accountants recommended by others
• Find out from your local Chamber of Commerce where to find an accountant
• Look in your local newspaper or do an online search
• Research the accountant by looking at their website before you approach them

How to choose an accountant

Part of the process of how to find a great accountant is knowing what questions to ask.

Can they give you examples of experience with businesses like yours?

An accountant who has worked with clients in a similar sector to yours should be helpful. They’ll have a good understanding of the unique needs of your business.

They’ll know about specific tax laws that will apply to you.

For example, if you work in construction, find an accountant who is familiar with the Construction Industry Scheme. Ask them if there are any special considerations for your business sector.

That way, you can check they’re aware of the risks and opportunities.

What services do they offer?

Ask what services the accountant offers to make sure they can support your business needs. This might range from basic bookkeeping and filing self-assessment tax returns to advice on financial compliance.

You can let the accountant know your growth plans and ask how they can support you. It’s much better to find an accountant who can grow with you.

Otherwise, you might have to switch accountants later down the line.

What are their professional qualifications?

Anyone can become an accountant or tax advisor, so it’s important to check for qualifications and certifications.

The Institute of Financial Accountants (IFA) website is a helpful resource to find an accountant in your local area. It specialises in supporting smaller businesses.

Every accountant listed on this site is IFA qualified, so you know they’re chartered by a regulatory board and suitably qualified.

We also recommend you choose an accountant who is qualified through one of the recognised UK bodies: ICAEW, ICAS, CIMA or ACCA.

Remember, financial mistakes can happen. Being a member of one of these bodies offers you recourse. You can turn to them if your accountant makes a serious error while representing your business.

What are their rates?

This gives you a handy way to compare the cost, like-for-like, with other accountancy firms.

Some accountants charge a one-off fee for a service, such as a tax return. Others will charge a monthly fee. Clarify this from the start.

Other questions you could ask

A great accountant will help your trade business grow. They can do this by managing the complex financial work and offering advice to help you make sound financial decisions.

Ask questions about:

• Business expenses (what can be offset against your tax bill?)
• Common pitfalls to avoid with your finances
• How much of your earnings should you set aside for tax
• Tips for managing cash flow (which can often be a problem for new businesses)

When asking these questions, the accountant should be willing to explain to you in terms that you understand. If they don’t, tell them you do not understand.

A great accountant will be happy to break down complex topics for their clients.

It may be important to you to have close contact with your accountant. If so, you’ll also need to ask them about the level of service you’ll get.

Is it possible to meet monthly, for example? This will depend on how much support you feel you’ll need.

What services should a great accountant offer?

It’s not essential to have an accountant as a self-employed individual. But a growing business will reap the benefits of hiring a qualified accountant. Accountants will do a range of tasks for your business, including:

Accounting and bookkeeping

Accounting and bookkeeping form the foundations of every business.

Your accountant can help you to set up efficient processes from the start. This will give you a clear picture of your company finances.

It allows you to spot any discrepancies early on. For example, problems with cash flow, late payments, and increasing costs before they escalate.

Tax and self-assessment

Accountants will help to make sure you’re tax-compliant. That means paying the right amount of tax while advising on tax efficiencies. They will also help with your tax planning.

This can help to reduce your tax liabilities, helping the growth of your business.

As a self-employed tradesperson, you may also benefit from asking your accountant to fill in and submit your self-assessment tax return. You need to do this at the end of each financial year.

This will not only save you time, but it’ll make sure you’re tax-efficient and avoid making errors that could result in a costly fine.

Business planning and growth management

An accountant can also use their experience to help you build or develop your business plan.

Their financial expertise will help you to extract greater value from your business. You can do this through financial forecasting, identifying growth areas and analysing costs.

Auditing

If you’re looking to push ahead with business growth, you may need to secure funding. Your accountant can help guide you.

Before approaching an investor or lender, you’ll need accurate financial reports and audits. These cover areas like your business costs, outgoings and credit control.

How much does an accountant cost?

So, how much does it cost to hire an accountant? It will vary depending on the services you require:

• The average cost of an accountant in the UK is around £25 – £35 per hour. This is for basic services, such as bookkeeping
• For more complex work, for example, tax planning, you can expect to pay £150 per hour or more
• For a tax return, you can expect to pay between £150 – £250. A complex return will cost more

Depending on the needs of your business, you could enquire about a combined package to help the day-to-day running of your business. In this instance, you might be charged a monthly fee, which could range from £60 – £250, depending on the size of your business.

Some accountants charge by the hour, some charge a monthly retainer, and others might charge a percentage of your turnover. Make sure this is clear before you instruct an accountant to work on your behalf.

Check out our article on the cost of an accountant for more information.

It’s good practice to keep on top of your books, making it part of your habit to record invoices and bills. This will help ensure your accounts are in order for your accountant to file your tax return efficiently. This makes less work for the accountant and could even help to lower your bill!

Get ready for growth

As your trade business grows, you’ll want to find new ways to bring in more work. Checkatrade members receive our help with new enquiries.

There are lots of other benefits of Checkatrade membership too:

• Dedicated membership advice team
• Work guarantee up to £1,000
• Exclusive offers and discounts
• Up to 20% off Public Liability Insurance
• Reduced cost of workwear and branding
• Savings on other business essentials such as vans, fuel and materials

Key takeaways

• Choose an accountant who understands your trade industry
• Ask other tradespeople, family or friends to recommend an accountant they know and trust
• Check the accountant is qualified through one of the recognised accounting industry bodies
• Find out what fees they charge – these will vary depending on what services you use
• Think about how the accountant can help your trade business grow