If accounting is such a significant part of managing a limited company, then hiring the right accountant for your new business is one of the most important decisions you’ll ever have to make as a business owner.
Finding the right accountant can be a minefield, especially if you don’t know who to trust and what accounting service will be the best and most appropriate fit for your new limited company.
We deal with new business founders every day as a company formations agent, so we know the struggles you face when looking for an accountant for your new limited company.
Here are 5 common mistakes that every limited company owner must try to avoid when considering the services of an accountant:
1 – Trying to manage your accounts on your own
Entrepreneurs are passionate about their business and it’s no wonder they tend to want to do everything themselves.
As a business owner, your time is valuable and your attention is best spent elsewhere, while you let somebody else take care of the financial side of things.
2 – Hiring an accountant who lacks qualifications and experience
Can the accountant explain technical financial matters with you? Can they ensure that your company complies to the necessary rules and regulations which won’t end up with you getting your fingers burnt and costly fine in the future?
3 – Not using professional software or cloud-based technology
Many accountants swear by the efficiency and ease of Microsoft Excel. However, as good as Excel is, it is not as advanced and interactive as any good accounting software out there.
For example, it can be difficult to detect human error mistakes in Excel. Cloud-based accounting software employs a double-entry system that helps filter out such critical errors.
4 – Hiring the first accountant you meet
Finding the right accountant can be a challenge. Not only is it time consuming, but it draws you away from doing what you do best – running your business!
There are numerous accountants who are willing to provide their services. It’s important that you do the research and find the best accountant who’s the right fit for your business.
5 – Hiring the cheapest accountant you find
Another mistake business owners make when hiring an accountant is going with the cheapest option available.
While it makes perfect business sense to cut costs and save money, scrimping on accounting services is not the way to do it. Hiring an accountant should be viewed as an investment rather than an expense.
Not only can an accountant help save you money, but they can advise you in tax, PAYE, laws etc.
To help you avoid any of these mistakes with your own limited company, you’ll be pleased to know that we have partnered up with Cobia accounting who can provide you with professional and expert advise on your accounting needs, and all from as little as just £49 per month.
PS – Register your company here today and receive your first month’s accounting service FREE (£49 value for the Annual Returns Service – £99 value for the All Inclusive Service).